Finance Secretary Ralph Recto said on Wednesday, August 14, that the Maharlika Investment Fund (MIF) has not yet made any investments yet and will not receive any budget from the government next year.
During the Senate subcommittee on finance’s briefing with country’s economic managers regarding the projected 2025 national funding, Recto said the nation’s first sovereign wealth fund is “taking time” in hunting for investment prospects at present.
“As you know, it is like a start up. We just passed the law last year so they have been in operation for six or seven months right now,” he pointed out.
“We’re determining the pay packages to be given to the employees of the Maharlika and they’re scouting for investments,” Recto said.
Although the Landbank and the Development Bank of the Philippines have already sent P75 billion to the MIF, no money has been set aside in the 2025 National Expenditure Program for the sovereign fund.
“P75 billion was given to Maharlika. That P75 billion is invested in the Treasury. The interest expense that it earns is their operating expenses, but they will not be able to utilize all that interest that they will earn,” Recto said.
“How much has it spent? Very minimal,” Recto added.
Recto, the chairman of the Maharlika Investment Corp., the MIF administrator, also mentioned that the organization currently lacks employees.
The Finance Secretary also said even he, chairman of the MIC, is not getting paid anything by Maharlika. Furthermore not getting anything from the sovereign fund are the Land Bank president and the DBP president.
According to law, government personnel cannot have extra pay on top of their pay grade.
“It’s the private sector representatives who will be paid eventually, but as of today, they have not been paid a single centavo as well,” Recto said.
The MIF was the pet measure of President Ferdinand Marcos Jr. in 2023. Despite popular criticism, Congress had hurried to turn the bill into legislation.
Earlier, MIC president and chief executive officer Rafel Consing stated the Maharlika Investment Fund (MIF) will lower poverty and provide more employment, therefore helping to increase the economic growth of the nation.
He especially pointed out that the MIF seeks to support and sustain the significant national economic growth, lower poverty by generating employment, and advance sustainable development.
Since the MIF has nothing to offer yet, Consing also received cricitisms for apparently requesting a basic pay of P2.5 million—a number some believe excessive.
Recto clarified, nevertheless, that Consing does not yet get paid.
“He has not received a single peso,” Recto said. (TCSP)
