Implementing rules for Maharlika fund take effect Sept. 12

Metro Manila (CNN Philippines, August 29) — The Bureau of the Treasury (BTr) on Tuesday said the Implementing Rules and Regulations for the Maharlika Investment Fund (MIF) Act have been issued on Aug. 28 and will take effect on Sept. 12.

"IRR will be effective on 12 September 2023, fifteen days after publication," said Finance Secretary Benjamin Diokno.

The IRR will take effect 15 days after its complete publication in the Official Gazette or in a newspaper of general circulation, Diokno said.

“The MIF will serve as a crucial financing mechanism to widen fiscal space, ease the burden on local funds, and reduce reliance on official development assistance [ODA] in funding big-ticket projects such as those specified in the recently approved Infrastructure Flagship Project [IFP] list,” he said.

President Ferdinand Marcos Jr. signed the MIF into law in July, describing it as an “extremely important measure” and “bold step” as the government moves to strengthen the economy in a post-pandemic world. In the same month, Diokno announced the drafting of the IRR was in its final stage.

"The National Government shall source its PHP 50 billion contribution from 100 percent of the dividends of the Bangko Sentral ng Pilipinas (BSP) for the first and second fiscal years upon effectivity of R.A. No. 11954; its 10 percent share from the income of the Philippine Amusement and Gaming Corporation (PAGCOR) for a period of 5 years; 10 percent of revenues from gaming operations of other government-owned gaming operators/regulators; government assets and proceeds from privatization of government assets; and other sources such as royalties and/or special assessments for a period of five years," said a statement from the BTr.

The BTr said agencies providing social security and public health insurance services are not allowed to invest in the MIF.

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Meanwhile, Diokno said the search for officers to head the Maharlika Investment Corporation is ongoing.

"The search for the President and CEO (PCEO) of the Maharlika Investment Corporation, two regular directors, and three independent directors is on," he said.

"The qualifications of the PCEO, the regular directors, and the independent directors are provided in Section 39, 22, and 26 of the IRR, respectively," he said.

A copy of the IRR is not yet available on the website of the Philippine Gazette as of posting.