Question & AnswerQ&A (Republic Act No. 11954)
The official title is the "Maharlika Investment Fund Act of 2023."
The main policy objective is to generate, preserve and grow national wealth, create jobs, promote trade and investments, foster technological transformation, strengthen connectivity, expand infrastructure, and achieve energy, water, and food security through establishment and management of the Maharlika Investment Fund.
The MIF is a fund created under the Act which pools national funds and investments from top government financial institutions to promote economic growth and social development with a strategic and commercial investment approach.
The Maharlika Investment Corporation (MIC), a government-owned and -controlled corporation created under this Act, is responsible for the governance and management of the MIF.
The MIC has an authorized capital stock of Five hundred billion pesos (P500,000,000,000), divided into five billion shares at a par value of One hundred pesos each. It has common shares totaling three billion seven hundred fifty million, mainly subscribed to by the National Government and founding GFIs, and preferred shares totaling one billion two hundred fifty million, non-voting and non-convertible.
The Land Bank of the Philippines (LBP) and Development Bank of the Philippines (DBP) are the Founding Government Financial Institutions.
Allowable investments include cash, foreign currencies, fixed income instruments, corporate bonds, equities, Islamic investments such as Sukuk bonds, joint ventures, mutual and exchange-traded funds, real estate and infrastructure projects aligned with national priorities, programs on health, education, research, and loans or guarantees to commercial enterprises contributing to economic development.
Yes, the MIC is prohibited from investing in areas that are explicitly forbidden under existing laws and international conventions to which the Philippines is a party.
The Board has nine members: Secretary of Finance (Chairperson), President and CEO of MIC (Vice-Chairperson), Presidents and CEOs of LBP and DBP, two Regular Directors, and three Independent Directors. Regular Directors must be Filipino citizens, at least 35 years old, possess good moral standing, recognized probity and independence, and substantial experience in corporate governance, financial investments, or management.
They shall be fined from Five million to Seven million pesos and perpetually disqualified from holding public office. If the violation causes public injury, the fine increases to Ten to Fifteen million pesos.
Whistleblowers providing truthful information on offenses under the Act are protected from detrimental acts such as interference with lawful employment. Any retaliatory act against them can result in fines from One million to Two million pesos and imprisonment of six years.
All investments, financial statements, Statements of Assets, Liabilities and Net Worth (SALNs) of officials, and audit reports from both internal and external auditors must be made available to the public, subject to laws, and published on the MIC’s website. Quarterly confidential submissions to the Joint Congressional Oversight Committee on MIF are also mandated.
The MIF-JCOC oversees, monitors, and evaluates the implementation of the Act. It receives quarterly confidential investment reports and audit reports from the MIC.
The MIC shall exist for thirty-five (35) years from the date of effectivity of the Act unless earlier repealed or extended by Congress.
The Santiago Principles are internationally accepted good governance, transparency, and accountability guidelines for sovereign wealth funds. The MIC shall adhere to these principles in managing the Maharlika Investment Fund.