THE Committee on Banks, Financial Institutions, and Currencies chaired by Senator Mark A. Villar, resumed its scrutiny on measures seeking to establish the country’s sovereign wealth fund Wednesday, February 15, 2023.

During the second public hearing on House Bill (HB) No. 6608 and Senate Bill (SB) No. 1670 and 1814, discussions centered on the proposed tax-related incentives for the Maharlika Investment Fund (MIF), which, according to some of the resource persons, would create an “uneven business playing field.”

Also, in tax benefits, a provision where, instead of taxes, there would be a percentage of the fund to be returned to specific public service projects.

“So would you rather that the fund will not be exempted from any taxes,” Sen. Villar asked during the resumption of the hearing.

Calixto Chikiamco, president of the Federation of Economic Freedom, clarified that they want a “leveling of the playing field” because the tax exemptions give due advantages to companies investing in the MIF compared to private firms participating in other government-related projects.

Sen. Nancy Binay asked officials of the Bureau of Treasury (BTr), represented by National Treasurer Rosalia de Leon, during the hearing if there is a “business plan” for the proposed MIF.

Binay pointed out that it would be easier to convince lawmakers to pass the proposed measure if the proponents of the bill could provide them with the MIF business plan.

De Leon, in response, said that BTr is currently working on the proposed sovereign wealth fund and that there would be an investment and risk management strategy.

Sen. Raffy Tulfo said he wanted to ensure that the MIF will be beneficial for the country and the Filipino people by making its officials “liable” for any irregularities that might occur.

Tulfo admitted that he is still studying the proposed measure and contemplates filing his own version.

“To prevent corruption from entering MIF, my suggestion is that we should not exempt the members of the board from criminal prosecution, especially if there are bad investments due to selfish practices. We should charge them with plunder,” Tulfo said.

The Senate is eyeing to approve MIF bills by June 2023, which is being considered as one of the 12 top priority bills of the upper chamber.

The MIF bill seeks the creation of sovereign funds in a bid to achieve the country’s economic goals.

Several private sector commitments were reportedly expressing pledges as early as now and other financial institutions from other countries that would reap significant benefits for the Philippines.