ACG Chief Tax Advisor, Mon Abrea, shares insights on the Maharlika Investment Fund in his recent article published by the Philippine Daily Inquirer. Abrea’s incisive analysis critically examines Republic Act No. 11954, which designates the Maharlika Investment Corporation (MIC) as the government’s overseer of the fund. The article raises significant concerns about the absence of robust safeguards against potential abuses, graft, and corruption, coupled with uncertainties surrounding the promised 8.6 percent return on investments.
A focal point of Abrea’s critique is the recently updated implementing rules and regulations (IRR) of RA 11954. Notable changes in qualification requirements, particularly in the appointment of MIC’s president and CEO, and alterations in the functions of audit and risk management committees are scrutinized for potential lapses in oversight.
He extends his analysis beyond legal frameworks, addressing transparency issues and questioning the prudence of allocating public funds to a sovereign wealth fund amidst a national budget deficit and growing debt. The Asian Consulting Group encourages readers to delve into Abrea’s comprehensive insights for a nuanced understanding of the potential risks and implications associated with the Maharlika Investment Fund.
Drawing attention to global scandals like the 1Malaysia Development Berhad (1MDB), Abrea emphasizes the need for public vigilance and skepticism. He underscores the difficulty of tracing and prosecuting corruption and urges the public to hold the government accountable to prevent the misuse of public funds. In his view, condoning corruption by failing to act only allows it to thrive.
Know more about the recent changes and red flags of Republic Act No. 11954, or the Maharlika Investment Act of 2023, by reading the full article here: https://acg.ph/the-caveats-and-promises-of-maharlika-investment-fund/
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