Two Senate leaders disputed pronouncements by Finance Secretary Benjamin Diokno that other means were available that would allow the GSIS and the SSS to put funds in the Maharlika Investment Fund. | melvingasconINQ /PDI
For instance, Diokno noted that the MIC that would manage the fund could enter into joint ventures and coinvestments with partners, including the pension funds.
“For example, the Maharlika has a big project worth P1 trillion and the GSIS or SSS wants to subscribe or invest in 10 percent of that [project] because it has a high return, they can do it … in the project, but not on equity,” Diokno said. “This prohibition was even repeated three times—in Section 6 on the allowed investors to the preferred shares of the MIC; on the last paragraph of Section 6 which further solidifies the prohibition of these agencies to invest in the capitalization of the MIC, and again in Section 12 on the investors to the MIF,” he said.
“They are avoiding the words used in the law like ‘initial capital, additional capital, bonds. If they say ‘subscribe to projects,’ what does that mean? GSIS and SSS will ‘finance’ the projects?” he said.“Isn’t that plain and simple ‘lending,’ or ‘loaning money,’ to the project? Just like buying a bond from the MIC is the same thing. circumvention in effect,” he said.
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