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Chariah Jimwell Peralta (Position Paper)

The document discusses criticisms of the proposed Maharlika Wealth Fund (MWF) bill. It argues that the MWF is unnecessary and would increase bureaucracy and administrative costs. It also expresses concerns that pension funds from the GSIS and SSS contributed to the MWF could be misused by corrupt officials. While proponents claim the MWF would generate higher returns for members, critics argue there are insufficient protections to prevent issues like Malaysia's 1MDB scandal. Concerns about the bill continue despite reassurances from the technical working group revising the proposal.

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Lance Patrick Evangelista
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42 views3 pages

Chariah Jimwell Peralta (Position Paper)

The document discusses criticisms of the proposed Maharlika Wealth Fund (MWF) bill. It argues that the MWF is unnecessary and would increase bureaucracy and administrative costs. It also expresses concerns that pension funds from the GSIS and SSS contributed to the MWF could be misused by corrupt officials. While proponents claim the MWF would generate higher returns for members, critics argue there are insufficient protections to prevent issues like Malaysia's 1MDB scandal. Concerns about the bill continue despite reassurances from the technical working group revising the proposal.

Uploaded by

Lance Patrick Evangelista
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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INTRODUCTION

By this point, it would be plagiarism to add to the chorus of critics of the


Maharlika Wealth Fund. With enough intellectual, logical, and moral energy, it has been
dissected, cut into pieces, and filleted from head to tail, making the entire plan pointless,
pointless, and punch-drunk. Where pension funds figure in the discussion, that's where
emotions ran high. And for quite understandable reasons. Here, we're discussing the
future of a people. No authority, no matter how far up the ladder, has the right to
unilaterally redirect monies set aside for retirement.

BODY

Without the MWF, GSIS and SSS can invest member contributions into a wide
range of projects; as a result, the MWF is an unnecessary invention that would only
further bloat the existing bureaucracy and, as a result, cause millions or even billions of
pesos in unnecessary or wasteful administrative costs to double or triple. For objectives
that are essentially quite comparable to what the SSS and GSIS are now authorized to
perform, the bill would unquestionably at least quadruple the amount of bureaucracy
and administrative costs to manage the MWF. The SSS, for instance, must be
mentioned as being a top-heavy bureaucracy in and of itself, with multiple vice
presidents receiving over a dozen "year perks." In addition to their monthly salary and
benefits, which range in value from 91,028.00 to 300,969.00 pesos, they also get a total
of between 231,256.00 and 623,938.00 pesos in other payments. However, Congress
should also begin investigating SSS and GSIS performance given that both regularly
raise or are considering raising premium contributions from employees (San Juan,
2022) despite their inability to sufficiently demonstrate that they are managing funds
well enough to generate significant profits for the members' benefits, particularly when
compared with the apparent relative superior performance of Pag-ibig Fund at least in
2018.

According to Salud (2022), no comparable information is available for normal


SSS donations, although GSIS awarded "cash benefits to its active members amounted
to Php174 million" in 2019. According to an SSS statement from 2022, "the pension
fund's mandatory provident fund for its members...generated an income of PHP333.77
million with a corresponding return of 6.39 percent in the first year of its
implementation." Meanwhile, for comparison's sake, from 2011 to 2021, the mandatory
Pag-IBIG Regular Savings dividend rate varied from a low of 4.08% in 2013 to a peak of
7.61% in 2017, while the voluntary MP2 (Modified Pag-IBIG 2) Given that the
establishment of the MWF increases the amount of administrative and bureaucratic
costs, it would have to ensure at least reaching such heights. Unfortunately, the MWF
law does not ensure such increased earnings.

The largest barriers to the creation of this financial fund come from individuals
who worry that trust money derived from company and employee donations may find its
way into the pockets of dishonest public officials. For a very long period, requests for
sickness, disability, and death payments have been rejected by the SSS and the GSIS.
Thousands of workers have perished from illnesses or accidents related to their jobs as
a result of associated factors. SSS administrators continue to hide behind the pretext of
purportedly protecting the fund's integrity while denying compensation to widows and
orphans. However, they will now gamble with the cash belonging to the employees and
employers without their knowledge or, in certain cases, their consent. The GSIS is the
same way. The money does not belong to the GSIS, the SSS, or the government.
These are the property of both employers and employees. Without the owners'
permission, politicians are not allowed to utilize or invest in risky businesses.

CONCLUSION

But now, they are going to gamble the workers' and employers' money in
uncertain ventures, without the knowledge, much less the approval of the beneficial
owners of the funds. The same is true with the GSIS. That is why I oppose the
implementation of the Maharlika Wealth Fund. It is dangerous not just for certain people
but for everyone as well. It promotes no success and increase, but rather failure and
uncertainties. Those are the reason why I oppose its implementation and the program
itself. However, concerns about these measures continue to be expressed. The
technical working group revising the MWF is chaired by Rep. Joey Salceda of Albay's
2nd District, who responded to concerns from various organizations by saying there are
sufficient protections in place to prevent another 1MDB. To relieve people's concerns,
Salceda revealed the draft bill's updated clauses.

REFERENCES

 Elijah. (2022, December 15). FACT SHEET: The Maharlika investment fund
explained. VERA Files. https://verafiles.org/articles/vera-files-fact-sheet-the-
maharlika-investment-fund-explained
 Salud, J. P. (2022, December 6). [Opinion] Maharlika wealth fund: A serious
'trigger warning'. MSN. https://www.msn.com/en-ph/news/other/opinion-
maharlika-wealth-fund-a-serious-trigger-warning/ar-AA14XtXt
 San Juan, D. M. (2022, December). 18 Reasons Why WE OPPOSE House Bill
6398 [Position Paper on Maharlika Wealth Fund (MWF)/PH Sovereign Wealth
Fund (SWF)]. ResearchGate.
https://www.researchgate.net/publication/366000387_18_Reasons_Why_WE_O
PPOSE_House_Bill_6398_Position_Paper_on_Maharlika_Wealth_Fund_MWFP
H_Sovereign_Wealth_Fund_SWF
 Jimenez, J. B. (2022, December 9). Maharlika wealth fund: A solution looking for
problems. Philstar.com.
https://www.philstar.com/the-freeman/opinion/2022/12/09/2229695/maharlika-
wealth-fund-solution-looking-problems-
 DBMgovph. (n.d.). Maharlika wealth fund, an investment vehicle and economic
driver - Economic team. dbm.gov.ph.
https://www.dbm.gov.ph/index.php/secretary-s-corner/press-releases/list-of-
press-releases/2511-maharlika-wealth-fund-an-investment-vehicle-and-
economic-driver-economic-team
 Garcia, N. (2022, December 5). Explainer: What is the 'Maharlika fund' and why
is it raising concern among critics, including marcos' sister? Philstar Life.
https://philstarlife.com/news-and-views/824063-maharlika-wealth-fund-bill-
explainer

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