Question & AnswerQ&A (Republic Act No. 11954)
It is Republic Act No. 11954, which establishes the Maharlika Investment Fund, provides for its management, investment, and use of proceeds, and sets other related provisions.
The MIF aims to generate national wealth, promote economic growth, create jobs, support infrastructure development, and achieve sustainable development through strategic investments.
The MIC is a government-owned and controlled corporation created under the Act to govern and manage the Maharlika Investment Fund.
The Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) are the Founding GFIs.
Capitalization sources include the National Government, Land Bank of the Philippines, Development Bank of the Philippines, dividends from the Bangko Sentral ng Pilipinas, government share in PAGCOR and other government-owned gaming operators, proceeds from privatization of government assets, and other sources like royalties.
Allowable investments include cash, foreign currencies, fixed income instruments, corporate bonds, equities, Islamic investments, joint ventures, mutual funds, real estate and infrastructure projects, health and education projects, loans and guarantees, and other sustainable investments approved by the Board.
The Board consists of nine members: the Secretary of Finance (Chairperson), the President and CEO of the 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, with good moral standing, and experience in corporate governance, financial investments or management. They serve full-time, cannot hold other public office, and must divest conflicting private interests.
The penalty includes a fine ranging from Five million to Seven million pesos, or Ten million to Fifteen million pesos if injurious to the public, and perpetual disqualification from holding public office.
The MIC must prepare financial statements as per relevant standards, engage internal and external auditors, be subject to COA examination and audit, conduct special audits every five years, and submit quarterly confidential submissions to the Maharlika Investment Fund Joint Congressional Oversight Committee.