Recto presides over 2nd Maharlika Investment Corp. board meeting as new chair
Finance Secretary Ralph Recto has presided over the second board meeting of the Maharlika Investment Corp. (MIC) in his capacity as new chairperson to discuss its strategic direction.
Established under Republic Act No. 11954, the MIC serves as the sole vehicle responsible for mobilizing and utilizing the Maharlika Investment Fund (MIF) for investments in transactions aimed at generating optimal returns on investments (ROIs).
The MIC’s role is to establish a diversified portfolio of investments in the local and global financial markets and in other assets that promote the commercial as well as developmental and strategic objectives of the Fund.
The board approved MIC President and CEO Rafael Jose Consing, Jr. to continue discussions with stakeholders regarding potential investments.
The commercial objective of the MIC is geared towards obtaining optimal absolute return and maximizing financial gains on its investments in the short- to medium-term.
In the long-term, the developmental objective is to promote economic development by making strategic and profitable investments in key sectors.
During the meeting, Consing reiterated the sectors that will be tapped by the MIF to achieve multi-generational commercial, economic, and social development value creation.
The industry focus includes infrastructure; oil, gas, and power; agroforestry industrial urbanization; mineral processing; tourism; transportation; and aerospace and aviation.
Consing also called for a reorganization of the committee chairpersons to be compliant with Section 26, R.A. 11954, which states that an Independent Director must be the Chairperson of the Risk Management Committee, consistent with international best practices.
Independent director German Lichauco II was nominated as chairperson of the committee, as well as other committees on good corporate governance.
Meanwhile, the board approved the remittance of funds from the account of the Bureau of the Treasury (BTr) to the MIC.
The BTr shall transfer the contributions to the account of MIC within five business days from receipt of the relevant board resolution.
The noard likewise approved the motion to appoint the Land Bank of the Philippines (LBP) and Development Bank of the Philippines (DBP) as depository banks of the MIC which is consistent with Department of Finance (DOF) Department Circular No. 002.2022 stating that GOCCs may deposit and maintain government funds with the LBP and DBP without the need for prior approval from the Secretary of Finance.
To ensure that the MIC performs its mandated functions, the Board approved that PCEO Consing be authorized to hire personnel as specified under the duties and qualifications of the PCEO in Section 23 of RA 11954.
Present during the second board meeting were MIC Directors Vicky Castillo Tan, German Lichauco II, Andrew Jerome Gan, and Roman Felipe Reyes; LBP President and CEO Lynette Ortiz; and DBP President and CEO Michael de Jesus.
The MIC’s Advisory Body was also present, represented by Department of Budget and Management (DBM) Secretary Amenah Pangandaman and Officer in Charge Treasurer Sharon Almanza.
The third MIC board meeting is scheduled sometime in February, following the Secretariat’s consultation on the availability of the board of directors. DOF Information Management Office
