PBBM defends revised Maharlika IRR, stresses independence of board

LOS ANGELES, California — President Ferdinand Marcos Jr. on Friday (US Time) addressed concerns raised about the revised Implementing Rules and Regulations of the Maharlika Investment Fund, emphasizing that the changes were made to strengthen the independence of the board and prevent political interference.

In a media interview, Marcos denied the claims about allegations that the IRR was "relaxed" just to appoint Rafael D. Consing Jr. as the president and chief executive officer of the Maharlika Investment Corporation.

Even Consing himself denied the allegations earlier this month, saying that the perception that it was revised to favor him was 'absolutely wrong'.

Marcos underscored that the revisions were aimed at tightening control and ensuring the fund's integrity.

"I don't know where we relaxed anything. Quite the contrary, we tightened things up," President Marcos stated.

He explained that the primary focus of the revisions was to grant the board greater autonomy in decision-making, particularly regarding the fund's investments and personnel.

This move, Marcos emphasized, was driven by his desire to shield the MIF from political influence.

"I repeatedly said I do not want political forces to interfere with the financial decisions of the investment fund. And so there were powers, there were authorities that were being still granted to the government side," President Marcos said.

"That's why I said let the board decide. The board has to be the one to decide, even the choice of people, even the structural organization we try – as much as possible. Now, of course, the government has an interest in that. So the government of course has to be involved. But as much as possible, on the day-to-day workings of the fund, we leave it to the board, we leave it to the managers," he added.

President Marcos acknowledged the public's concern regarding his power to accept or reject board nominees. However, he defended this provision by drawing an analogy to a corporation, where the entity with the largest capital interest holds the most voting power.

"Well, we hold the controlling interest; we are the government. It's like in a corporation, the entity with the largest capital interest has the most votes. That's what happens," President Marcos explained.

"It's just that simple. It's not really an unusual arrangement. It's a perfectly proportional arrangement," he said.

The IRR of the Maharlika Investment Fund released on Sunday relaxed the qualifications for members of the board of directors, which initially required members to have a Master's degree.