Question & AnswerQ&A (Republic Act No. 11954)
The short title of Republic Act No. 11954 is the "Maharlika Investment Fund Act of 2023."
The primary policy objective is to generate, preserve, and grow national wealth; create jobs; promote trade and investments; foster technological transformation; and achieve energy, water, and food security by investing national funds and coordinating top-performing government financial institutions' investments.
The MIC is a government-owned and -controlled corporation created under this Act to govern and manage the Maharlika Investment Fund (MIF), responsible for the overall governance, management, and investment of the Fund in accordance with its objectives and other applicable laws.
Founding Government Financial Institutions refer to the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP).
The Board consists of nine members: the Secretary of Finance (Chairperson, ex officio), the President and CEO of MIC (Vice-Chairperson), the Presidents and CEOs of LBP and DBP, two Regular Directors, and three Independent Directors from the private sector.
Regular Directors must be Filipino citizens, at least 35 years old, of good moral reputation, with substantial experience in corporate governance, financial asset investments or market management. They serve full-time, cannot hold other public offices or have private business interests related to MIC during their tenure, and must divest conflicting interests before assuming office.
The authorized capital stock is Five hundred billion pesos (P500,000,000,000) divided into five billion shares with a par value of One hundred pesos (P100) per share, comprising common and preferred shares as specified in the Act.
Sources include: 100% of Bangko Sentral ng Pilipinas (BSP) dividends for the first two fiscal years up to P50 billion, 10% of the National Government's share from PAGCOR and other government-owned gaming operators for five years, proceeds and properties identified by the Privatization Council, and other sources like royalties or special assessments.
Allowable investments include cash, foreign currencies, metals, fixed income instruments, corporate bonds, equities, Islamic investments like Sukuk bonds, joint ventures, mutual funds, real estate and infrastructure projects aligned with national priorities, programs in health, education, research, and loans or guarantees for economic development ventures.
Such a person shall be fined between Five million to Seven million pesos, with perpetual disqualification from public office. If the violation is detrimental to the public, the fine ranges from Ten million to Fifteen million pesos.
Independent Directors are appointed by the President of the Philippines upon recommendation of the Advisory Body for a term of one (1) year and may be reappointed, but their cumulative term shall not exceed nine (9) years.
The MIC must regularly publish terms and conditions of joint ventures and co-investments, financial statements, reports of investments, annual audits, and other key documents on its website, maintaining transparency and public accessibility.
MIC’s procurements are governed by Republic Act No. 9184, the Government Procurement Reform Act, except for selection of professional or technical services necessary for investments, which shall follow an open and competitive process approved by the Board.
Grounds include possession of disqualifications under Section 20, physical or mental incapacity lasting over six months affecting performance, and commission of fraudulent or illegal acts opposed to MIC's interests.