Senate Minority Leader Aquilino "Koko" Pimentel III on Wednesday lauded President Ferdinand Marcos Jr. for his decision to suspend the enforcement of the implementing rules and regulations of the Maharlika Investment Fund.

In a statement, Pimentel — one of the staunch critics of the MIF — described Marcos' suspension order as a "very good development."

"The law has a lot of defects. The concept has not been fully studied from the very start. Hence, we should not wonder why apparently the law is not ready for implementation," he said.

"Good that the Marcos administration appears to listen to reason," he added.

In a memorandum dated 12 October, Marcos ordered the Bureau of Treasury, the Land Bank of the Philippines, and the Development Bank of the Philippines to suspend the IRR of the MIF Act, pending further study.

'Welcome news'

Senate Deputy Minority Leader Risa Hontiveros also lauded Marcos' decision to suspend the IRR of the MIF Act, stressing it was "welcome news for all Filipinos and for our vulnerable economy."

"I hope that the suspension of the rollout of the Maharlika Fund Investment means that the President is starting to heed our warnings. Indeed, many provisions of the MIF Act require further study," Hontiveros said in a separate statement.

"My own view, of course, is that it is beyond repair – because the law was rushed, and the Philippines is simply not ready at this moment to support a wealth fund," she added.

'Diokno misled us'

Hontiveros also blasted Finance Secretary Benjamin Diokno for "misleading the Senate when he said that the Land Bank of the Philippines and the Development Bank of the Philippines had excess funds which were idle and could be used for the MIF."

"At best, he simply did not have the competence to understand the repercussions of messing with the finances of Land Bank and DBP. He was a former BSP Governor, himself," she said.

"The MIF, among its many flaws, is now poised to reduce the LBP and DBP's capacity to provide loans for farmers, fisherfolk, and agri-entrepreneurs by more than P700 billion – or ten times the capital that will be taken from them," she added.

She continued: "As it turns out, the Bangko Sentral's position is that DBP and Land Bank will need to be recapitalized. Where are we going to get these funds? Of course, we will borrow money."

Under the MIF Act, the LDP and DBP are required to contribute a total of P75 billion to Maharlika's initial capital.

Last month, the DBP remitted its P25 billion contribution to the corporation while the LDP remitted its P50 billion worth of contribution.