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Advocates Philippines
Bureau Of Treasury Greenlights Guidelines For Maharlika Investment Fund Act Implementation
Photo credit: Bureau of the Treasury
The Bureau of Treasury (BTr) has given the green light to the Implementing Rules and Regulations (IRR) of the recently enacted Republic Act (RA) No. 11954, known as the Maharlika Investment Fund Act of 2023. The IRR outlines the comprehensive framework, procedures, and standards for the law's effective implementation.
Key among the provisions, the Maharlika Investment Corp. (MIC), established under RA No. 11954, will serve as the exclusive entity to channel and deploy the Maharlika Investment Fund (MIF) into transactions that aim to achieve optimal returns on investment (ROI), while simultaneously revitalizing job creation and expediting poverty reduction to sustain the nation's high-growth trajectory.
The MIC's authorized capital stock, amounting to P500 billion, will be divided into five billion shares with a par value of P100 each. Notably, the common shares will account for three billion seven hundred fifty million (3,750,000,000), equivalent to PhP375 billion, open for subscription by the national government and its affiliated bodies. Simultaneously, the preferred shares, totaling one billion two hundred fifty million (1,250,000,000) and worth PhP125 billion, will be available for subscription by the government and its instrumentalities.
Comprising nine members, the MIC's Board of Directors will be led by the Secretary of Finance in an ex-officio role, while the President and Chief Executive Officer (CEO) of the MIC will act as the vice-chairperson. Other directors include the Presidents and CEOs of the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP), in addition to two regulatory directors and three independent directors hailing from the private sector. Their primary mandate is to oversee the governance and management of the MIC, as well as its assets and investments, in alignment with the provisions of RA No. 11954.
In accordance with the IRR, the establishment of the Maharlika Investment Fund Joint Congressional Oversight Committee (MIF-JCOC) is slated to supervise, monitor, and evaluate the proper execution of RA No. 11954. Comprising a total of seven members each from the House of Representatives and the Senate, the MIF-JCOC will ensure transparent and accountable implementation.
The BTr's approval of the IRR, conducted in consultation with the LBP and DBP, transpired on August 22. The IRR is poised to become effective fifteen days after its complete publication.
The Maharlika Investment Fund (MIF) has been strategically designed to foster socio-economic development by tactically investing in crucial sectors to preserve and enhance the fund's long-term value. The overarching goal is to attain optimal returns and financial gains, meeting liquidity, safety, and yield requirements to ensure sustained profitability.
Key among the provisions, the Maharlika Investment Corp. (MIC), established under RA No. 11954, will serve as the exclusive entity to channel and deploy the Maharlika Investment Fund (MIF) into transactions that aim to achieve optimal returns on investment (ROI), while simultaneously revitalizing job creation and expediting poverty reduction to sustain the nation's high-growth trajectory.
The MIC's authorized capital stock, amounting to P500 billion, will be divided into five billion shares with a par value of P100 each. Notably, the common shares will account for three billion seven hundred fifty million (3,750,000,000), equivalent to PhP375 billion, open for subscription by the national government and its affiliated bodies. Simultaneously, the preferred shares, totaling one billion two hundred fifty million (1,250,000,000) and worth PhP125 billion, will be available for subscription by the government and its instrumentalities.
Comprising nine members, the MIC's Board of Directors will be led by the Secretary of Finance in an ex-officio role, while the President and Chief Executive Officer (CEO) of the MIC will act as the vice-chairperson. Other directors include the Presidents and CEOs of the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP), in addition to two regulatory directors and three independent directors hailing from the private sector. Their primary mandate is to oversee the governance and management of the MIC, as well as its assets and investments, in alignment with the provisions of RA No. 11954.
In accordance with the IRR, the establishment of the Maharlika Investment Fund Joint Congressional Oversight Committee (MIF-JCOC) is slated to supervise, monitor, and evaluate the proper execution of RA No. 11954. Comprising a total of seven members each from the House of Representatives and the Senate, the MIF-JCOC will ensure transparent and accountable implementation.
The BTr's approval of the IRR, conducted in consultation with the LBP and DBP, transpired on August 22. The IRR is poised to become effective fifteen days after its complete publication.
The Maharlika Investment Fund (MIF) has been strategically designed to foster socio-economic development by tactically investing in crucial sectors to preserve and enhance the fund's long-term value. The overarching goal is to attain optimal returns and financial gains, meeting liquidity, safety, and yield requirements to ensure sustained profitability.
Aug 30, 2023
