GSIS chief defends wealth fund, business group head says defer it
The MIF, under the proposed House measure, also has checks and balances and would be transparent, the GSIS chief pointed out
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Daily TribuneThe MIF, under the proposed House measure, also has checks and balances and would be transparent, the GSIS chief pointed out
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The proposed Maharlika Wealth Fund should be seen as a "long-term investment" that could help the Marcos administration achieve its goal of nation-building, Government Service Insurance System president and general manager Arnulfo "Wick" Veloso said on Tuesday.
Veloso made the statement in a radio interview amid concerns that the fund may jeopardize the state pension funds overseen by the GSIS for government workers and the Social Security System for private sector employees.
"I reiterate that whatever investments we make here are going to accrue to the members of the GSIS and we are there at the Maharlika Board to make sure the investments are protected while at the same time help in nation-building," he added.
The MIF, under the proposed measure, also has checks and balances and would be transparent, the GSIS chief pointed out.
"We are here to ensure that this investment will be done properly. There are various layers of transparency to ensure that the funds are protected and invested properly and we are going to make sure the public is going to be informed," he added.
Veloso said that the involvement of independent directors, legislative oversight, and an internationally recognized auditing company will all serve to represent the private sector.
Oppositors
Under House Bill 6398, government financial institutions like the GSIS, SSS, LandBank of the Philippines and the Development Bank of the Philippines are among those to be tapped for MWF investments.
Among those opposed to the MWF are retired Supreme Court Justice Antonio Carpio and the Philippine Chamber of Commerce and Industry or PCCI, the country's largest business organization.
HB 6398 seeking to create the MWF was filed by House Speaker Martin Romualdez and his nephew, the President's son Ilocos Norte 1st District Rep. Sandro Marcos.
In a statement, PCCI president George Barcelon said he is recommending the deferment of the bill because the creation of such a fund, both in amount and timing, should be reconsidered.
"Pooling resources from the revenues of the national government, the Central Bank and government-owned financing institutions' may impact the sustainability of the country's welfare system and financial standing," Barcelon said.
Credit standing
He stressed that the government must make sure that no action will affect the country's "presently good credit standing which provides us lower (interest) foreign loans."
He stressed that low-interest loans are crucial in funding big-ticket infrastructure projects undertaken by the national government.
"While acknowledging that having a sovereign wealth fund could serve as a conduit to further grow the local economy, the timing may not be right considering the uncertainty of the financial market due to the geopolitical situation, and recent cryptocurrency fiasco," he stressed.
On Monday, Representative Marcos said the proposal seemed long overdue and was already contemplated during the term of then-President Rodrigo Duterte.
"This isn't a new idea if you think about it. Secretary (Benjamin) Diokno already said they were looking at it during the time of Duterte. If I'm not mistaken, former senator Bam Aquino filed a bill in 2016 trying to do the same thing," Marcos said.
Not new
"My guess is it was not passed because the administration of former president PNoy was about to end at that time. I believe Senator JV (Ejercito) also filed a bill," he added.
Senator Christopher "Bong" Go on Tuesday said the management of the proposed fund must be thoroughly studied to ensure it will be free from political interference.
Earlier, European Chamber of Commerce president Lars Wittig said that although the proposed bill is interesting, they said they will remain impartial to the Philippine government's push to create its own sovereign wealth fund as details on the table are still vague.
HB 6398 aims to maximize the profitability of investible government assets for the benefit of all Filipinos, patterned after the sovereign wealth fund of other countries.
