EDITORIAL - Speedy approval

Quicker than lightning, the House of Representatives approved on its last session day before the Christmas break House Bill 6608, creating the Maharlika Investment Fund or MIF. The approval on second and third or final reading on the same day was made possible after President Marcos certified HB 6608 as urgent even as he nursed a bad cold in Europe.

As of yesterday, as Congress began a monthlong Christmas break, even Bangko Sentral ng Pilipinas Governor Felipe Medalla had changed his tune. Moderating his initial open opposition to the MIF, Medalla said Maharlika, as presented in the hastily crafted HB 6608, could draw foreign direct investments to the country. He now says that BSP independence would not be undermined by the MIF. But he emphasized the need for safeguards.

Only six House members voted against HB 6608 while 279 supported it, including several who initially opposed its passage. These former opponents, who had cautioned the chamber against railroading such a complex measure, said they changed their mind after their concerns were addressed and the necessary amendments were made in the bill.

The ball is now in the Senate’s court. Since there are only two opposition members in the chamber, the measure might have also been passed by the pro-administration majority as quickly as in the House, except the Christmas break got in the way.

Yesterday Senate President Juan Miguel Zubiri allayed concerns that the measure would also be railroaded in the chamber. He vowed to subject the proposal to close scrutiny, and to introduce the necessary provisions that will overcome the major hurdles along the way.

One hurdle is the sourcing of the funds, which have been slashed by more than half after congressmen excluded the P175 billion in government and private pension funds as well as P25 billion from the national budget. But Finance Secretary Benjamin Diokno, who is expected to chair the MIF, said the pension fund boards could still decide to invest in Maharlika. What’s left are P50 billion from the Land Bank of the Philippines, P25 billion from the Development Bank of the Philippines and dividends from the BSP.

Another concern is corruption and mismanagement, with fears that the MIF will fuel a resurgence of crony capitalism. To address this concern, the proponents raised the number of independent MIF directors to four, with multiple layers of audit, plus fines and imprisonment for mismanagement. President Marcos has also been removed as MIF chair.

Another concern is where the funds will be invested. Can the country afford to suffer investment losses at this time? Maharlika is reportedly meant to finance development projects. Is this part of the BSP mandate? Business groups have warned that the proposal could undermine the country’s credit standing. These are serious issues that cannot be tossed aside in haste.