Wealth fund proponents backtrack, delete SSS, GSIS from funding source list

Authors of the proposed Maharlika Investment Fund (MIF), which has come under fire for its timing and possible legal impediments, appear to have realized possible blunders this early.

A statement from the Office of Speaker Martin Romualdez said the House of Representatives on 7 December removed the Social Security System (SSS) and Government Service Insurance System (GSIS) as contributors to the proposed MIF.

"Marikina City Rep. Stella Quimbo, a co-author with Romualdez of the MIF bill, said they made the decision after meeting with the administration's economic managers, who drafted the measure.

"Based on our assessment of the proposed changes put forward by the economic team, we are amending the bill to change the fund sources, removing GSIS and SSS as fund contributors and instead utilize profits of the Bangko Sentral ng Pilipinas.

"Upon the Speaker's instructions, Quimbo said the changes would be introduced into the bill by the committee on appropriations in a meeting on 9 December.

"Maganda na nagsagawa tayo ng series of consultations ukol sa panukala; na-validate ang mga agam-agam ng ating mga kababayan, lalo na ang masisipag na manggagawang Pilipino, na buwan-buwang naghuhulog ng GSIS at SSS contributions," said Quimbo.

Quimbo pointed out that the purpose of the proposed Philippine sovereign wealth fund "is to become an investment vehicle where existing surplus capital of the government can grow and reap benefits."

"As the bill goes through the deliberation and approval process, Quimbo said the House "will put in place safety nets to ensure the success of the project."