![[ANALYSIS] On the Maharlika Wealth Fund](https://i.headtopics.com/images/2022/12/7/rapplerdotcom/the-reality-is-the-philippines-has-presently-no-su-the-reality-is-the-philippines-has-presently-no-su-1600499140743598085.webp)
'The reality is, the Philippines has presently no surplus funds to establish a true sovereign wealth fund.... The MWF is just masquerading as a sovereign wealth fund, which means the Philippines is a poor country pretending to be rich.' Analysis READ:
Editor’s Note: This piece was written by retired Supreme Court senior associate justice Antonio T. Carpio before the House of Representatives decided to excludeSovereign Wealth Funds are constituted from surplus funds arising from government budgetary surplus when government revenues exceed government expenditures.
First, the funds from these four sources are not surplus funds. GSIS and SSS funds are not even public funds. Landbank and DBP are already required by law to pay as annual dividends to the national government at least 50% of their annual net profits. These dividends form part of the General Fund of the government and cannot be deemed surplus funds until at least the enactment of the annual appropriations act.
Second, the funds of the GSIS and SSS are private funds owned by their respective members. SSS investible funds, which are contributions from the salaries of its members, are not public, but private funds. There are several rulings of the Supreme Court affirming that SSS funds are private funds, and these rulings should apply also to GSIS funds.
Thus, if the GSIS or the SSS is entitled to P100 million from the annual net profits of the MIC based on their proportionate shareholdings, the Board of Directors can reduce their share in the net profits for distribution to P50 million and give the rest to the national government to fund the national budget. However, that would be taking private property for public use without payment of just compensation – an unconstitutional act.
Section 27 of the proposed bill states: “The officers and employees of the MIC shall be exempt from Civil Service laws, rules and regulations.” This section in the proposed bill is unconstitutional. Section 24 of the proposed bill states that “the GFls which form part of the MIF shall have the option to be exempted from the coverage and all of the provisions of Republic Act No. 10149 or the GOCC Governance Act of 2011.” In short, the proposed bill requires the MIC to follow the Santiago Principles but gives the GFIs forming the MIC the option to exempt themselves from the GOCC Governance Act of 2011.
Strangely, under Section 24 of the proposed bill, the MIC itself is not exempt from the GOCC Governance Act of 2011 despite the provision in Section 24 “that there is a need for flexibility to operate, function, employ and retain employees to ensure the successful implementation of the goals of the MIF,” which is the premise in Section 24 for exempting the GFIs from the GOCC Governance Act of 2011.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tax provisions of Maharlika Fund OK’d by House panel; Salceda assures benefits to pensionersThe House tax panel approved on Monday, Dec. 5, the tax provisions of the Maharlika Investment Fund Act, which will ensure that tax benefits go to the investment fund rather than line the pockets of executives and other officials.
Read more »
Business, think tanks reject planned Maharlika Wealth FundVarious business and think tank groups have strongly opposed the planned Maharlika Wealth Fund (MWF).
Read more »
Sandro Marcos vouches for Maharlika Investment Fund: Not a novel ideahttps://youtu.be/iJ0Th91PruQ MANILA, Philippines — Presidential son and Ilocos Norte 1st District Rep. Ferdinand Alexander “Sandro” Marcos has defended the proposed Maharlika Investment Fund
Read more »
Let technocrats run Maharlika wealth fund to avert politics – Sandro MarcosICYMI: 'Of course, it’s been politicized, but the whole point of this exercise is that this corporation will be free from politics. That’s why it needs to be run by technocrats, wala silang interesado sa politika,' Marcos said.
Read more »
Let technocrats run Maharlika wealth fund to avert politics – Sandro MarcosMANILA, Philippines — To ensure that the proposed Maharlika Investment Fund (MIF) remains non-partisan, Ilocos Norte 1st District Rep. Sandro Marcos said on Monday that technocrats should be at
Read more »
Poor need ample aid, not corrupt-prone Maharlika wealth fund, gov’t toldMANILA, Philippines – Gabriela Rep. Arlene Brosas on Monday urged the government to respond to the desperate pleas of poverty-stricken Filipinos by providing them with direct and sufficient aid
Read more »