Bartolome sees synergy in MIC, NDC, DBP merger

National Development Co. private sector board member Arsenio Bartolome believes that the government should move to combine and harness the assets of the Maharlika Investment Corp. (MIC), the National Development Co. (NDC) and the Development Bank of the Philippines (DBP) to grow the Philippine economy.

He even suggests that the government should seriously look into combining the private sector insurance fund, the Social Security System (SSS), with the Government Service Insurance System (GSIS) to create a bigger fund that would help the government invest in projects that would boost the local economy.

He pointed out that combining the SSS with the GSIS may lead to better benefits for SSS members since the GSIS provides better benefits to government workers.

In an exclusive interview, Bartolome expressed the view that the government should combine the assets of the MIC and NDC with that of the DBP, with the latter as the lone government financial institution focused on national development.

Just like what the government had done with the Philippine National Bank, which was privatized and is now owned by the family of taipan Lucio Tan, Bartolome is of the opinion that the Land Bank of the Philippines, which is also embroiled in the ongoing corruption probe on flood control projects, should also be privatized.

According to Bartolome, who previously headed the PNB and supported its privatization, the merger of the MIC, NDC and DBP would enable the government to focus on one or two major economic projects of national interest that would help spur economic activity, especially amid the slowdown in construction due to the ongoing probe into corruption in flood control projects of the Department of Public Works and Highways.

Bartolome noted that the MIC leadership has been unusually quiet for several months, with rumors swirling about the health of Rafael Jose “Joel” Consing Jr., who was appointed in November 2023.

So far, the only announced investment of the MIC was a partnership with Thai agriculture giant Charoen Pokphand Group for a $1 billion private equity fund focusing on agriculture, food production and digital innovation. Since that announcement, no further update has been communicated by the MIC on the partnership.

Bartolome admits that he has been puzzled by the creation of the MIC from the start, pointing out that a review of its charter shows that its goal of national development is almost the same as the mandate of the NDC. The NDC, he said, could have easily been named Maharlika.

The NDC, Bartolome pointed out, holds most of the real estate assets of the PNB before its privatization and that of the DBP, and easily has more than P10 billion in assets.

In its 2024 annual audit report, it recorded a net income of P1.45 billion, a significant decrease from its 2023 net income of P3.45 billion. However, the 2024 audit report of the NDC questioned the investment property account valuation of P32.011 billion, noting the need to reconcile some variances and inconsistencies in the audit report.

Bartolome stressed the need for the Marcos Cabinet members to coordinate more closely in addressing the country’s economic challenges. “You get the impression they are not talking and are being overtaken by politics,” he said.

“Where are we going?” Bartolome lamented, especially with the Philippines now being labeled as corrupt and foreign equity buyers exiting the local stock market, causing the bourse to momentarily fall below the 6,000 level before settling at that level at present.

Furthermore, Bartolome added, “In terms of power, we are the most expensive.”

He said the economic managers “seem to have lost their direction” in guiding the economy, with Cabinet members not coordinating on how to steer the economy through the current corruption probe.

All eyes, Bartolome observed, are focused on the Independent Commission for Infrastructure or ICI.

“How long do you think they should be able to come up with something? Six months? It should be very, very clear. But what if the investigation is wider? If within six months the commission is not able to complete its work, what is the proposal for the economy then?

“Everything’s down. What does it mean? Nothing moves, nothing works. I think there’s no coordination, no understanding between the Cabinet members, the Department of Economy, Planning and Development formerly NEDA, and the Department of Finance,” Bartolome lamented.

The NDC private board member also acknowledged the damage caused by talks of political threats and possible military upheaval that are harming the economy, leading to the flight of foreign equity funds and discouraging foreign investors from investing in the Philippines.

All these are happening even as the global economy is trying to deal with the tariff upheaval caused by US President Trump with his “Liberation Day” tariff hikes and his continuing dispute with China, on which he recently announced his intent to slap a 100 percent tariff.

With the corruption probe unearthing eye-popping money laundering, there are also valid fears that the Philippines may once again be included in the Financial Action Task Force grey list, which may result in difficulties for Filipinos accessing funding or their personal foreign bank accounts.

Even though the Philippines has been removed from the grey list, there have been reports that one country has refused to accept Philippine pesos for currency exchange because we are seen as a corrupt country.

Less activity at Manila Golf

One interesting tidbit from Bartolome was his observation about how activity at the Manila Golf Club has subsided following the corruption probe.

Before the probe, Manila Golf was a beehive of activity for big shots with their entourage of bodyguards, necessitating the construction of a new canteen just for security personnel and constantly leading to a congested parking lot.

Nowadays, he chuckles, “there are more empty parking spaces.”