The Department of Finance (DOF) on Tuesday sought to assure some lawmakers there are safeguards if government financial institutions (GFI) and government-owned or controlled corporations (GOCC) invest in the proposed Maharlika Investment Fund (MIF).

The Senate is holding a period of amendments on the proposed Maharlika Investment Fund before it adjourns on Thursday. The House of Representatives has passed its version of the Maharlika Investment Fund last December.

Finance Secretary Benjamin Diokno told reporters in a Palace briefing the Land Bank of the Philippines (LBP) can only invest three percent of its total "investable funds."

"Actually its (LBP) investable fund is more than 1 trillion (pesos). But it can only contribute 50 billion of it (for investments)," Diokno said.

These limits, he said, apply to Social Security System (SSS) and the Government Service Insurance System (GSIS).

Senator Aquilino Pimentel III had warned in a television interview how the fund can bankrupt financial institutions if it fails.

Diokno said this concern is "baseless" since GFIs and GOCCs have boards and "risk committees".

Senator Risa Hontiveros also expressed concern on the alleged "backdoor provision" in Senate Bill No. 2020 allowing GIFs and GOCC to invest their funds to the MIF.

She said the Senate should remove the provision. In the case of SSS and GSIS, she expressed concern if they will invest a portion of the pension funds to the fund.

Diokno said: ''For example SSS, (its investments) are very limited. They are mostly in treasury bills. Now, if you give them the opportunity to invest in infrastructure projects like tollways for example and they will earn 20 percent return, why will they be prohibited from doing that?" DMS