The House of Representatives has dropped the Government Service and Insurance System and the Social Security System as funding sources for the P275 billion seed money of the controversial Maharlika Wealth Fund (MWF).
Instead, MWF proponents will use profits of the Bangko Sentral ng Pilipinas (BSP) to fill up the void left by GSIS and SSS.
In a statement, Marikina Rep. Stella Quimbo, a co-author of House Bill No. 6398 creating the MWF, said House leaders led by Speaker Martin Romualdez met with the economic managers Wednesday morning (December 7) to reassess the MWF as proposed by the team led by Finance Secretary Ben Diokno.
“We are amending the bill to change the fund sources, removing GSIS and SSS as fund contributors and instead utilize profits of the Bangko Sentral ng Pilipinas,” said Quimbo who did not elaborate how much the central bank would funnel into the MWF.
The amendments will be taken up by the Committee on Appropriations on Friday.
The move is a big blow to the GSIS led by General Manager Jose Arnulfo “Wick” Veloso which would have chipped in P125 billion or nearly half of the MWF’s initial capital. (The SSS is contributing only P50 billion).
Veloso, one of the brains behind the MWF, had defended GSIS’ massive bet in the MWF claiming that this was the best time to invest the members’ money “when there is blood on the streets.”
GSIS and SSS members savaged the MWF after realizing that their pension contributions would be used for risky investments outside of their retirement benefits.
Retired Justice Antonio Carpio claimed the use of GSIS and SSS fund were unconstitutional because it was no different from “taking private property for a public purpose without just compensation.”
Quimbo saw a silver lining in the backlash against the MWF.
“Maganda na nagsagawa tayo ng series of consultations ukol sa panukala; na-validate ang mga agam-agam ng ating mga kababayan, lalo na ang masisipag na manggagawang Pilipino, na buwan-buwang naghuhulog ng GSIS at SSS contributions,” said Quimbo.
ALSO READ:
Not yet the right time: PCCI joins opposition against Maharlika fund
Ba’t ngayon lang umaangal? Losing senatorial bet Bam Aquino filed Maharlika Fund-like bill before Marcoses did
Pension plunder: Online petition launched vs Maharlika Wealth Fund
Big bucks for best and brightest! Maharlika fund managers to be exempt from gov’t pay scale
Ultimate safeguard: Gloria Arroyo says PH president will be accountable for Maharlika fund use
Maharlika Wealth Fund won’t end up like 1MDB: Here’s how gov’t plans to safeguard multibillion-peso investments
