Senator Chiz Escudero said that the latest version of the proposal seeking to create the Maharlika Investment Fund (MIF) has better chances of passing in the Senate after key changes to the measure meant to raise funds for the government.
According to Escudero, he already signed the committee report reflecting the major amendments to the previous version of the MIF bill, which many of his Senate colleagues deemed unacceptable.
“As I stated from the beginning when we started to review the original bill filed by Senator Villar, we will provide a better version. I said then that the Senate counterpart will not be in the same shape, size, color or form because, as it was passed in the House (of Representatives), it clearly will not pass the Senate,” the veteran legislator recalled.
This early, the seasoned lawmaker has expressed his intention to be among the interpellators of the committee report prepared by the Senate Committee on Banks, Financial Institutions and Currencies which will now be known as Senate Bill 2020.
“I want to make sure that the bill from the Senate will have the necessary safeguards and more importantly, puts the interest of the Filipino people first.”
“I want to make sure that the bill from the Senate will have the necessary safeguards and more importantly, puts the interest of the Filipino people first,” the senator said.
He further described the updated version as “totally unrecognizable” from its original form.
“If you compare SB 1670 and SB 2020, ang layo. It is now totally unrecognizable,” Escudero said.
One of the major improvements introduced to the measure via SB 2020 is to allow the Maharlika Investment Corporation (MIC) to issue bonds. It is accompanied by provisions detailing the authorized and subscribed capital stocks to be created.
SB 2020 provides for a P500-billion authorized capital stocks to be comprised of the following:
- P375 billion worth of common stocks to be subscribed by the National Government (NG); and
- P125 billion worth of preferred stocks to be subscribed by the NG and reputable private financial institutions and corporations “subject to certain conditions.”
The bill further prescribes that of the initial P125 billion worth of MIC common stocks to be subscribed by the national government, P75 billion shall be fully paid by the following:
- P50 billion by the Land Bank of the Philippines (LBP); and
- P25 billion by the Development Bank of the Philippines (DBP).
“We will further introduce more improvements once the Senate opens it for interpellation.”
“We will further introduce more improvements once the Senate opens it for interpellation,” Escudero said, adding that he recently met with the Marcos administration’s economic team that included Budget Secretary Amenah Pangandaman and Finance Secretary Benjamin Diokno.
In that meeting, he and the economic managers discussed ways and strategies to further improve the provisions of the MIF bill.
Among the matters highlighted in the meeting were the sources for the fund and institutional arrangements of its managing corporation to ensure its integrity and sustainability.
