PBBM: Independent MIC assures good corporate governance

President Ferdinand Marcos Jr. committed to strengthening the independence of the Maharlika Investment Corporation's board of directors to promote full autonomy and good corporate governance.

Marcos made the commitment after he ordered the review of the implementing rules and regulations of Republic Act No. 11954—legislation establishing the Maharlika Investment Fund—making sure that there are safeguards in place to guarantee transparency and accountability in carrying out the provisions of the law.

The President wants the MIC Board of Directors to exercise independence so they can be able "to manage the fund, free from any undue political interference."

Hence, Marcos recently met with various government offices, including the Office of the Executive Secretary, Presidential Management Staff, Bureau of Treasury, and Government Service Insurance System, to finalize the IRR of the MIF.

Once approved, Marcos urged for an immediate establishment of the corporate structure to ensure the funds will be " up and running" as well as prioritizing transparency and accountability.

Section 21 of RA 11954 outlines the powers of the 9-member MIC Board, responsible for governing and managing MIC and its investment assets.

The MIC board consists of 9 members, including the Secretary of Finance as the ex-officio Chairperson, the President, and Chief Executive Officer as the MIC Vice Chairperson, the President and CEO of the Land Bank of the Philippines, the President and CEO of the Development Bank of the Philippines, and three independent directors from the private sector.

Section 23 RA 11954 mandates the PCEO to oversee the operations and internal administration of MIC, managing risk, financial performance, human resources, accounting, and legal affairs.

Marcos issued several directives to strengthen and guarantee some powers that are inherently vested in the Board, which include managing government contributions, appointing corporate officers, setting additional qualifications or disqualifications for directors, and forming committees with specific functions in a bid to strengthen the board's authority.

The Office of the Executive Secretary noted that the revisions introduced by the President to the IRR of the MIL "serve to clarify, while simultaneously buttressing, the exercise of the discretionary powers of the Board of Directors to maintain its independence."

The OES said this ensures independence for MIC to explore investment gainful opportunities while adhering to legal obligations and aligning with the government's socioeconomic development program.

Marcos assured the operationalization of the Maharlika Investment Fund before this year ends.

In previous interviews, Budget Secretary Amenah Pangandaman, a member of the MIC Board's Advisory Body, said that the board of directors overseeing the sovereign wealth fund will be appointed in November as the government targets to finish the review as soon as possible.