Marcos Jr's executive secretary said in an Oct 12 memo there was a need to study the fund’s implementing rules and regulation to ensure that safeguards were in place for “transparency and accountability”. — Bloomberg
MANILA: Philippine President Ferdinand Marcos Jr has suspended the implementation of a controversial sovereign wealth fund that he fought to bring to fruition, citing the need to make it foolproof.
His executive secretary said in an Oct 12 memo there was a need to study the fund’s implementing rules and regulation, which were already in effect, to ensure that safeguards were in place for “transparency and accountability”.
The factors cited for the suspension were the very same reasons that critics of the fund have cited when they opposed it, which were met by repeated assurances from its backers, including Marcos, the fund would be managed with prudence.
It was not clear from the memo for how long the rules would be studied.
Opposition lawmaker France Castro said yesterday the suspension of the fund’s implementation showed the measure was “rushed and flawed on so many levels”.
“It would be better if President Marcos Jr just scrapped the whole Maharlika law rather than just suspend it,” Castro said in a statement. “We don’t have excess funds for this.”
The government has envisaged the fund would issue a total of 500 billion pesos worth of preferred and common shares which the national government, state-run firms and banks can purchase.
A shortlist of candidates for the board of directors to help manage the fund was submitted to Marcos this month.
Marcos, in signing the bill creating the fund in July, touted it as a key plank of his economic goals to modernise infrastructure and accelerate the country’s growth.
It followed moves by neighbours Malaysia and Singapore and more recently Indonesia in establishing sovereign wealth funds, albeit with mixed results.
In Malaysia, a multi-billion dollar graft scandal engulfed the 1Malaysia Development Bhd fund, causing widespread political repercussions. — Reuters
