The Maharlika Investment Corporation (MIC) has denied reports linking the sovereign wealth fund to convicted Swiss-British financial fraudster Patrick Mahony.
In an official statement released on 21 October 2025, MIC refuted circulating claims that the corporation had hired Mahony as a consultant to advise on changes to its rules and operating procedures.
“These reports contain false, baseless, and damaging accusations,” MIC said. “MIC categorically denies these claims, and clarifies that Mr. Mahony has not and has never been engaged by MIC in any capacity, whether formal or otherwise.”
Mahony was sentenced in 2024 to six years in prison for his role in Malaysia’s 1Malaysia Development Berhad (1MDB) scandal — one of the world’s largest corruption cases — in which billions of dollars were allegedly embezzled from Malaysia’s state investment fund between 2009 and 2015.
As an executive at PetroSaudi International, Mahony played a central role in arranging a fraudulent joint venture with 1MDB by falsely portraying PetroSaudi as backed by the Saudi government. This deception led 1MDB to commit large sums that were later diverted and laundered globally through luxury assets, real estate, and film financing.
In August 2024, the Swiss Federal Criminal Court convicted Mahony of fraud, aggravated money laundering, and criminal mismanagement for his role in the embezzlement of approximately US$1.8 billion, sentencing him to six years in prison.
MIC emphasized that it operates strictly within its legal mandate and under the oversight of its board and management team—composed of qualified professionals from the investment and legal sectors—who uphold high standards of integrity, competence, and accountability.
MIC manages the Philippines’ sovereign wealth fund, the Maharlika Investment Fund, whose primary objective is to attract investments and finance key national projects to promote economic growth and development.
The creation of the Maharlika Investment Fund sparked controversy over concerns about transparency, governance, and the potential misuse of public funds. Critics argued that it was rushed through without sufficient safeguards, raising fears it could become vulnerable to corruption or political interference.
Finance Secretary Ralph Recto currently serves as the chair of the Maharlika Investment Corporation’s board, overseeing its strategic direction and ensuring that the fund’s investments align with national economic priorities and fiscal responsibility. Recto has faced criticism for his past fiscal policies, particularly for supporting tax reforms such as the expanded value-added tax (E-VAT) law, which some argued placed a heavier burden on consumers while aiming to strengthen government revenues.
“MIC remains focused on its crucial mandate to manage and invest the Fund’s assets responsibly for the Filipino people,” the corporation added, while warning the public against spreading unverified information from unreliable sources.