Marcos clarifies DOF chief can’t run MIF management

President Ferdinand R. Marcos Jr. (PNA photo by Rey Baniquet)

MANILA – Department of Finance (DOF) Secretary Benjamin Diokno will be part of the Maharlika Investment Corp. (MIC) in an ex-officio capacity but is not authorized to run the Maharlika Investment Fund (MIF).

President Ferdinand R. Marcos Jr. issued the clarification on Tuesday, saying the DOF chief’s designation is in line with his commitment to make sure that the utilization of the MIF will not be influenced by political decisions.

He assured that the MIF, the Philippines’ first-ever sovereign wealth fund, will be handled by finance professionals.

“He (Diokno) should not be the chair. Because that was the original. The original proposal was that the President be the chair. Sabi ko (I said), I don’t think it should be that way because ako ang magpapatakbo ng (I will run the) fund. Hindi tama ‘yun dahil nasa politika ako. Kailangan mahiwalay sa politika (That’s unacceptable because I’m from politics. It should not be tainted with politics),” Marcos told reporters on the sidelines of the pilot launch of the “Walang Gutom 2027: Food Stamp Program” in Tondo, Manila.

The next proposal was for the DOF secretary to be the chair but Marcos said it is the same as designating him to run the MIF.

“Ang sumunod sabi ang DOF ang mag-chair. Ganoon din ang aking sinabi. Ngayon, may interest talaga ang gobyerno sa Maharlika Fund kaya kailangan meron tayong representative doon. Kaya’t ang nangyari, kung titignan mo ang batas, ang DOF (The next plan was to make the DOF as chairperson. I also rejected the proposal. Now, the government really has interest with the Maharlika Fund so we must have a representative. So under the law, the DOF) will serve as ex officio member,” he added.

Marcos said the decisions of those who will supervise the Maharlika Fund must not be based on politics but on what would be best for the fund.

Under Republic Act 11954 or the MIF Act of 2023 signed Tuesday, the nine-member MIC chaired by an Independent Director is created to serve as the investment body responsible for the overall governance and management of the Fund and is expected to be fully operational by end-2024.

The MIF will be invested in a wide range of assets, including foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, joint ventures, mergers and acquisitions, real estate and high-impact infrastructure projects, and projects related to sustainable development.