''Not right'' to include GSIS, SSS in fund as consultations lacking: solon
Lawmakers removed the Government Service Insurance System (GSIS) and Social Security System (SSS) as contributors to the Maharlika Investment Fund since there was not enough consultation with stakeholders, Marikina Rep. Stella Quimbo said Thursday.
In an interview with the ABS-CBN News Channel, Quimbo said that after the House met with economic managers, they decided it was “not right” to include the two state-owned pension funds as contributors to the Maharlika Investment Fund at this time.
“Admittedly, we started on the wrong foot. This bill was admittedly prepared by the economic managers. So of course, we assumed that there was proper, sufficient consultation with the stakeholders,” Quimbo said.
“And then, of course, lo and behold, when we started to hear the bill and we started to have a series of consultations, we realized that there was not enough consultation. Obviously, at this point of time, it’s not right for us to include GSIS and SSS as fund contributors,” she added.
Quimbo, co-author of House Bill 6398 creating the fund, said the creation of the sovereign wealth fund was a “good concept” since it would help augment the proposed 2023 P5.268 trillion national budget.
“P5.268 trillion is not enough. We need a way to generate more funds. And this is precisely why this bill was filed. It’s a way to take a surplus fund from GOCCs (government-owned and controlled corporations) and GFIs (government financial institutions) and put it into an investment vehicle and by pooling the funds, you’re able to get a more diversified portfolio and get higher returns,” Quimbo told the ABS-CBN News Channel.
“And at the same time, possibly invest in other projects with higher returns so that you’re able to maximize whatever funds that you have. And in the end, as you grow your fund, that can be tapped by the government to augment your national budget,” she added.
The move to exclude state-owned pension funds earned mixed reactions from senators.
Senators JV Ejercito and Joel Villanueva said they welcomed the development.
“HOR’s (House of Representatives) new scheme on the Maharlika Investment Fund wherein GSIS and SSS Pension funds would not be tapped anymore is a very welcome development,” Ejercito said in a statement.
“I will not support any measure that will gamble on SSS and GSIS pension,” he added.
Senator Koko Pimentel opposed the bill and in a statement said: “The Maharlika Fund proposal is weak not only because the arguments for it are weak but the objections against it are strong.” Jaspearl Tan/DMS
