MANILA, Philippines — President Marcos has named his adviser on economic and investment affairs as president and chief executive officer of the Maharlika Investment Corp. (MIC), which will manage the country’s first sovereign wealth fund.
Rafael Consing Jr., executive director of the Office of the Presidential Adviser for Investment and Economic Affairs, will serve as MIC president and CEO for three years.
“He is an accomplished, results-driven and multi-awarded C-level executive with a profound depth of experience in corporate governance, mergers and acquisitions, corporate finance, global capital markets, stakeholder relations and business strategy development,” the Presidential Communications Office (PCO) said in a statement Monday.
“He has demonstrated a remarkable ability to create value across economic cycles through sound strategic fiscal management. He is also well-versed in global corporate governance and has had a successful transition from regional investment banking to senior corporate management and government advisory,” it said.
As president and CEO of the MIC, Consing is tasked to establish a diversified portfolio of investments in local and global financial markets and other assets aligned with the objectives of Republic Act 11954, which established the Maharlika Investment Fund (MIF).
He will also manage and invest the initial and future contributions to the fund in accordance with the law.
While the implementing rules and regulations (IRR) do not specify how much Consing and the rest of MIC board will earn, Finance Secretary Benjamin Diokno earlier said that compensation may likely be the same as the members of the Monetary Board of the Bangko Sentral ng Pilipinas (BSP).
For reference, BSP executives are dominating the Commission on Audit list of highest paid government officials.
Monetary Board members are getting a net pay of around P25 million to P27 million per year.
Under Section 21 of RA 11954, the MIC Board will be composed of nine members. The secretary of finance will serve as chairperson in ex-officio capacity. Other members are the president and CEO of the MIC, who will sit as vice chair; the president and CEO of the Land Bank of the Philippines; president and CEO of the Development Bank of the Philippines; two regular directors and three independent directors from the private sector.
Background
Consing previously served as senior vice president and chief financial officer of the Razon-led International Container Terminal Services Inc.
He also held managing director roles at HSBC Hong Kong and HSBC Singapore, “where he led debt financing teams and achieved notable success in global debt capital market, Asian currency debt products and sovereign Sukuk Al-Ijara Money Market Programs,” the PCO said.
Consing served as vice president and treasurer for Aboitiz & Co. Inc. and Aboitiz Equity Ventures.
He also held positions at Bankers Trust Co. and Multinational Bancorporation, “where he gained invaluable experience in investment banking, derivatives and corporate finance,” the PCO said.
Consing has a political science degree from De La Salle University in Manila. He completed the Stanford University Graduate School of Business’s Emerging CFO: Strategic Financial Leadership Program in 2016.
Revised IRR
The economic team of the Marcos administration maintained that the revised IRR of the MIF are within the bounds of law, with both the Department of Finance and the Department of Budget and Management expressing full support.
Diokno emphasized that the finalization of the IRR came at a time when local and international investors have expressed interest in the MIF.
“The enhancements introduced by the IRR are all within the bounds of the law, meant to give full meaning to the establishment of a strong corporate governance structure,” Diokno said.
It should be noted that the revised IRR effectively gave President Marcos the upper hand to choose MIC’s top officials while at the same time easing some of their qualifications.
The revised IRR also removed the additional qualifications of regular and independent directors, particularly in terms of education, professional experience, track record and ethical standards.
On the other hand, Budget Secretary Amenah Pangandaman noted that the MIC will have the freedom to oversee the fund without undue political interventions that will impede its fulfillment of functions.
“The MIC Board will have the liberty and flexibility to fulfill its mandate and explore beneficial investment opportunities while adhering faithfully to the letter of the law and ensuring high-impact investments that are in line with the country’s socioeconomic development policies and programs,” Pangandaman said.
Both Diokno and Pangandaman expressed confidence that the fund will be operational by yearend as originally scheduled.
The MIC has an authorized capital stock of $8.9 billion. Private and state-owned financial institutions can make direct investments in the MIF’s sub-funds, which offer specific investment strategies.
‘Ultimate safeguard’
The final version of the IRR governing the MIC is a guarantee that the fund will have its “ultimate safeguard” from anomalies that may be committed by members of the board, Senior Deputy Speaker Aurelio Gonzales Jr. said yesterday.
“This step ensures that the board of directors can operate in a manner that best serves the interests of the corporation and its stakeholders, free from any undue political pressures,” Gonzales said.
“The IRRs, approved by no less than President Marcos, are a testament to the commitment to reinforce the governance structure of the MIC, ensuring that the board of directors possesses the necessary freedom to administer the fund without external interference,” Gonzales said.
House ways and means committee Rep. Joey Salceda reiterated that contrary to critics’ claim, efforts to fine-tune the MIC have always been aimed at “recruiting who the President thinks can run MIF best.”
“The most important change here is that the President can now require the Advisory Body to submit additional names if he sees that to be necessary,” he said.
“Considering that the nominees still have to pass all necessary qualifications set by the Advisory Body, that actually widens the net we cast for appointees to lead the MIF. That was almost the entire point of the revision,” Salceda stated.
He also commended the designation of Consing as president and CEO of the MIC, citing his “extensive experience in both financial management and the management of large infrastructure projects.”
“He is an excellent fit for both the financial and the developmental functions of the Fund. He is the man for the job. Consing has extensive experience in project financing, chief of which is the $398-million Project Finance for Victoria International Container Terminal,” Salceda concluded. — Delon Porcalla, Louise Maureen Simeon