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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HousebiuNo.6398
Introduced by Representatives FERDINAND MARTIN G. ROMUALDEZ, MANUEL
JOSE `MANNIX" M. DALIPE, FERDINAND ALEXANDER A. MARCOS, STELLA
LUZ A. QUIMBO, YEDDA MARIE K. ROMUALDEZ, JUDE A. ACIDRE
17          AN ACT ESTABLISHING THE MAHARLIKA INVESTMENT FUND, PROVIDING
18        FOR THE MANAGEMENT, INVESTMENT, AND USE OF THE PROCEEDS OF THE
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FUND, APPROPRIATING FUNDS THEREOF AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Agenda for Prosperity of the Administration of President Ferdinand Romualdez Marcos, Jr.
seeks to fulfill the objectives of its Medium-Term Fiscal Framework and 8-Point Socioeconomic
Agenda, which Congress adopted, in order to see the Philippine economy soar to greater heights
in spite of external shocks.
30      The Agenda includes achieving single digit poverty levels and upper middle-income status for
31      Filipinos by hitting 6.5 to 8 percent real gross domestic product (GDP) growth annually between
32       2023 and 2028.
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To   achieve  these   economic   goals,  it  is   essential   to  pursue  the  Administration's   priority
development  plans   and  projects,  improve   investment  opportunities,  promote   productivity-
enhancing investments, and ensure that the Philippines becomes an investment destination.
38      With these objectives in mind, this bill seeks to establish the Maharlika Investments Fund (MIF),
39      a sovereign wealth Fund (SWF) that will provide for the management, investment, and use of the
40      proceedsofthefund.
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42       Sovereign  Wealth  Funds  are  state-owned  investment funds  typically  financed  by  a  country's
43       surplus revenues or reserves. Governments invest these funds in an array of both real and financial
44      assets  to  stabilize  national  budgets,  create  savings  for  their  citizens,  or  promote  economic
45       development.
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1      The MIF would give Government Financial Institutions (GFls), including the Government service
2       Insurance system (GSIS), the social  security system (SSS), the Land Bank of the philippines
3       (LBP), and  the  Development Bank  of the  Philippines  (DBP), the  opportunity  to  ensure  their
4       respective funds' optimal asset allocation as well as ensure that resources are efficiently channeled
5      to investments that will provide the most value not only to the participating GHs, but also to the
6       country.
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8       SWFs can also successfully be used as a tool of national strategy, as evidenced by the successful
9      performance of singapore's SWFs, such as the GIC private Limited, which provide the financial
10      means  for  Singapore  to  manage  its foreign  reserves, defend  itself and  protect its  sovereigrty
11       without compromising its domestic program, and augment its land-limited economic space with
12       global investments.
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SWFs can also be used to attract direct investments, as what the Indonesia Investment Authority
(INA) did. By attracting foreign co-investors to capitalize the fund rather than rely on commodity
revenues,  the  INA   has  been   very   successful   in  bringing  in   much-needed  investments  in
infrastructure   and   emerging   industries,   ultimately   spurring   growth   in   Indonesia,  such   as
investmentsintransportation,includingairports.supplychains,logistics,digitalinfrastructure,the
green economy, healthcare services, the financial sector, technology, and tourism.
To ensure transparency and accountability, the MIF will adhere to the Santiago Principles, i .e., the
24 Generally Accepted Principles and Practices (GAPP) agreed to in October 2008 in Santiago,
Chile, in a collaborative global effort among countries with SWFs, investment recipient countries
and international organizations, to observe, among other things: that the SWF will comply with all
applicable regulatory and disclosure requirements in the countries in which SWFs invest; and that
the SWF will have in place a transparent and sound governance structure that provides adequate
operational controls, risk management, and accountability , among other commitments.
29      There are now almost 50 countries around the world with a sovereign wealth Fund. In Asia alone,
30      the nations that currently have swFs are singapore, China, Hong Kong, South Korea, Malaysia,
31       Indonesia, Taiwan, Vietnam and East Timor.
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As the Philippines secures its place not only as the RIsing Star of Asia but as a real economic
leader in the Asia Pacific, the creation of the MIF becomes imperative.
In view of the foregoing, the immediate approval of this bill to create the Maharlika Wealth Fund
is urgently sought.


.        `               `..```        ...              `              ,:         .`              ,` ,....  `
FERDINAND ALEXANDER A. MARCOS
Representative
First District, Ilocos Norte
ee
STELLA LUZ A. QUIMB0
Representative
Second District, Marikina City
Represerttative
Party-List, Tingog Sihirangan
A. ACID
resentative
Tingog Sinirangan


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Republic of the Philippines
HOUSH 0F REPRESENTATIVES
Quezon City, Metro Manila
NINTEENTH CONGRESS
First Regular Session
HouseBinNo.    6398
Introduced by Representatives FERDINAND MARTIN G. ROMUALDEZ,RANUEL
JOSE ``MANNIX" M. DALIPE,  FERDINAND ALEXANDER A. MARCOS, STELLA
LUZ A. QUIMBO, YEDDA MARIEK. ROMUALDEZ, JUDE A. ACIDRE
AN ACT
17       ESTABLISHING THE MAHARLIKA INVESTMENTS FUND, PROVIDING FOR THE
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MANAGEMENT, INVESTMENT, AND USE OF TIIE PROCEEDS 0F THE FUND,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be it erracted by the Senate and House of Represerttatives Of the Philippines in Congress
assembled:
26      Secft.o# I. TdrJe. - This Act shall be known as the "MAHARLIKA INVESTMENTS FUND
27      ACT.„
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Secfrom 2. Decfortlfl.on a/PoJI.c)}. -It is the policy of the State to create jobs, promote trade and
investments,strengthencomectivity,expandinfrastructure,achieveenergyandfoodsecurity.The
State recognizes the vital role of various investments in financial assets in promoting economic
growth,acceleratingj.obcreation,andimprovingthewelfareOfFilipinos.TheStateacknowledges
the  need  to  preserve  and  optimize  the  use  Of  government  financial   assets,  and   promote
intergenerational management thereof for macroeconomic stability.
Towards  this  end,  the  State  shall  establish  an  independent  Maharlika  Investments  Fund  by
investing  national  funds,  and  coordinating  and  strengthening  the  investment  activities  of the
country's top-performing Government Financial Institutions (GFls) to promote economic growth
and social development.
ARTICLE I
Definition of Terms
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44      Secfro# 3. Defi#rfu.o# a/re7"s. -The terms used in this Act shall be understood as follows:
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46                   a)   Maharlika Investments Fund orlF) refers to the fund created under this Act;


b)   Maharlika Investments Corporation (MIC) refers to the government-owned and
controlled corporation (GOCC) created under this Act which shall be responsible for
the overall governance and management of the MIF;
c)   Founding GFls refers to the GFls which shall invest equity to start up the MIF;
d)  Board of Directors ®oard) refers to the governing body of the MIC;
e)   Independent Member refers to a member Of the Board Of Directors coming from the
private sector with proven probity, competence and experience in finance, economics,
investments, business management, or law;
f)   GSIS refers to the Government Service Insurance System;
g)   SSS refers to the Social Security System;
h)   LBP refers to the Land Bank of the Philippines;
i)    DBp refers to the Development Bank of the philippines;
j)    Advisory  Body  refers  to  the  body  established  under this  Act  which  shall  provide
guidance, counsel and advice to the Board of Directors of the MIC;
k)   DOF refers to the Department of Finance;
I)    NEDA refers to the National Economic and Development Authority;
in) DBM refers to the Department of Budget and Management;
n)   Funding Sources refers to the initial investment required of the Founding GFls and
the National Government to start up the MIF; and
o)   "Santiago" Principles refers to the twenty-four (24) Generally Accepted Principles
and Practices (GAPP) voluntarily endorsed by the International Forum of Sovereign
Wealth Funds (IFSWF) members. The GAPP for Sovereign Wealth Funds (SWFs) are
designed as guidelines that assign best practices for the operations of SWFs.  They are
the rules followed by  SWF that promote stability in the global  financial  system, set
proper controls on investment risks, and implement sound governance structure.
ARTICLE 11
Maharlika Investments Fund
Section 4. Estoblishmeut Of the Mahdrli:ha lrrvestments Fund.  - Ttlele is holeky  orca:hod a
Maharlika Investments Fund (MIF), an independent fund, that adheres to the principles of good


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governance, transparency, and accountability. The Fund shall be sourced from the investible funds
of the country's top-performing GFls and from contribution of the National Government.  It shall
be used to invest on a strategic and commercial  basis in a manner designed to promote fiscal
stability for economic development, and strengthen the top-performing GFls through additional
investment platforms that will help attain the National Govemment's priority plans.
The funds invested by the GFls shall be exempt from any regulatory restrictions, if invested solely
to the NIF.
Sectpns.OwnershipoftheMaharuhalnvestmentsFund.-ThelegalowmershipoftheM]FshaLII
pertain to the  Fund  investors in proportion to their shareholdings.   The Fund investors  are the
Founding GFls, the National Government, and other fund contributors authorized in this Act.  The
Board of Directors, through the Chairperson of the Board and Chief Executive Officer, shall submit
periodic reports to the National Government, through the President of the Philippines.
Secti?n6.Obj.ecti:.vfs.OftheMcha:rlihalnvestmentsFund.~ThechiechveOfNIIF.istogenerate
consistent and stable investment returns with appropriate risk limits to preserve and enhance long-
term  value  of the  Fund, obtain  the  best  absolute  return and  achievable  financial  gains  on  its
investments, and to  satisfy the requirements  of liquidity, safety/security, and yield in  order to
ensure  profitability.    In  pooling  the  investible  funds  from  the  GFls  and  channeling  them  to
diversified financial  assets and development projects, the MIC's activities  shall  contribute to a
prudent and transparent management of the government resources.
ARTICLE Ill
Mahar]ika Investments Corporation
S.ecap.n. 7 . .I_sta_blishmeut Of _the Maharllha lnvestmeuts Coxporaf ron -There is hertry oreated
the Maharlika Investments Corporation (MIC), an independent corporate body, that shall act as a
vehicle for the purpose of mobilizing and utilizing the MIF for investments in transactions that
will enable the Fund to reap returns on investments (ROIs) while contributing to the overall goal
of reinvigorating job creation and poverty reduction by steering the economy back to its high-
growth path. The MIC shall govern and manage the Fund in accordance with the objectives and
purposes set forth in this Act, and it shall adhere to internationally-accepted standards, such as the
"Santiago" Principles.
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3_I_      See.fpn 8.. Func_tiopF_oof the Maharliha lrrvestmenls corporation. -In carrying out.its chfedres
38       and functions,the MIC shall:
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40             a)   Establish a diversified portfolio of investments in the local and global financial markets
41                    and in other assets that promote the objectives of the Fund;
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43             b)   Manage and invest the initial and future contributions to the Fund in accordance with this
44                   Act;
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c)   Accept and manage investment mandates whose investment purpose is to increase income
for development goals;
d)   Develop and foster skills in finance , economics, risk mitigation, good governance and other
related areas, consistent with the capacity and capabilities build-up of human resources in
the industry; and
e)  Implement international best practices in investing and managing assets in accordance with
the "Santiago" FTinciples for SWFs or similar principles as may be adopted by the Board.
11      Secfro" 9. FH#dl.rag sowroes. -Each of the founding GFls shall invest equity to start up the Fund
12      with an initial investment of Two Hundred Fifty Billion pesos (Php250 Billion), with breakdown
13       as follows:
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(i)   GSIS :  One hundred Twenty-Five Billion Pesos (Php125 Billion);
(ii)   SSS  :  Fifty Billion Pesos (Php50 Billion);
(iii)   LBP                :  Fifty Billion pesos (Php50 Billion); and
(iv)   DBP :  Twenty-Five Billion Pesos (Php25 Billion).
Each founding GFI may be allowed to subsequently increase its respective investments above its
equity contribution.
In addition , the National Government shall initially contribute the amount of Twenty-Five Billion
Pesos(Php25Billion)totheFund,and,onanannualbasis,maycontributeadditionalfundssubject
to availability of funds for the purpose .
Subsequent annual contributions to the Fund shall be provided as follows:
[i)      Bangko  Sentral  ng  Pilipinas:   foreign  currency  (FCY)  equivalent  Of  10%  of  the
remittances  from  the  Overseas  Filipino  Workers  (OFWs);  10%  coming  from  the
annual contribution of the Business Processing Outsourcing (BPO) sector;
(ii)     Philippine Amusement and Gaming corporation (PAGCOR):   10% from its gaming
proceeds;
(iii)     General Appropriations Act or supplemental Appropriations; and
(iv)     Other sources (c.g., special assessments on natural resources, public borrowings, and
the like).
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41      Section   10.   Administrative   and   Operafroiwl   Expenses   Of   the   Mahidiha   lrrvestmeuts
42      Coxpor¢fro". -The Board of Directors of the MIc is authorized to disburse from the Fund such
43       amounts as may be necessary for administrative and operating expenses, the total of which shall
44      not exceed ten percent (10%) of the gross revenue of the immediately preceding year.
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For the initial  operations of the  MIC, the  Board of Directors is  authorized to  disburse for its
administrative and operating expenses at a total amount not exceeding ten percent (10%) of its
initial capitalization.
ARTICLE IV
Investments
Sccfrom JJ. AJJowabJe J#vesfroe#ts.  -  Subject to strict compliance with Investment and RIsk
Management  Guidelines,  the  Board  of  Directors  of  the  MIC  shall  authorize  the  following
investments:
a)   Cash, foreign currencies, metals, and other tradeable commodities;
b)     Fixed income instruments issued by sovereigns, quasi-sovereigns and supranationals;
c)     Domestic and foreign corporate bonds;
d)    Listed or unlisted equities, whether common, preferred, or hybrids;
e)     Financial derivatives;
D     Islamic investments, such as sukuk bonds;
g)    Joint ventures or co-Investments;
h)    Mutual and Exchange-traded Funds;
i)     Commercial real estate and infrastructure projects; and
j)     Other investments as may be approved by the Board.
Investments in  real  estate, infrastructure  and  other development projects, whether alone  or in
partnership  with  other  corporate  entities  shall  be  limited  to  National  Economic  Development
Authority Board - approved major capital projects to ensure that these are in line with the socio-
economic development program of the government.
Subject to  the rules  and  regulations  to  be  promulgated  by  the  MIC Board, the  advice  of the
Advisory Body shall be sought by the same Board in case of transactions, such as but not limited
to, investments and  spending  that will  affect:  (1) the Balance  Of Payments;  and  (2) monetary
aggregates, like those which impact domestic liquidity and reserve money.
Secfro# J2. J#vesfroemf PoJ!.a)7. The Board of Directors shall formulate written policies in relation
to the following matters:
a)   Directions on the acceptable balance between risk and return of the overall portfolio;


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b)   Investment policies, mandates, strategies, and  guidelines on financing infrastructure
projects and other investments;
c)   Risk management for the investments;
d)   Standards for assessing the investment performance;
e)   Matters relating to international best practices for institutional investments;
f)    Matters specific to rules and regulations where investments are dorfuciled;
g)   Procedural framework and cooperation among investors, including fund commitments,
co-investments, voting requirements, exit mechanisms, and other matters pertaining to
the pooling of funds and the management thereof;
h)   Matters relating to the procedure for assessing, deploying, and liquidating investments;
and
i)    All other matters needed to be discussed to guarantee compliance with the objectives
of the Maharlika Investments.
The Board of Directors shall ensure that policies formulated are consistent with the objectives of
the Fund, and the same shall be subject to periodic review.
Section  13.  Limito:tions  and  Sofeguards  on  the  Mahdrttha  lnvestmerits  Fund.   -  The
management of the MIF shall be subject to a set of investment policies, guidelines, and risk limits,
as approved by the Board of Directors, upon due consideration of the recommendations Of the
Advisory Body. Investment and risk strategies of the MIF shall be in line with the policies and
objectives hereunder stated to ensure the long-term viability of the Fund.
Section 14.  Fees and Charges on the Establ,ishmeut Of the Maharliha lrrvestmerts Fund. -
Third paty fees and all charges incurred in connection with the establishment and management of
the MIF, such as, but not limited to, custody fees, transaction fees, clearing fees, and management
fees payable to external fund managers, shall be charged against the MIF.
ARTICLE V
Governance
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41      Seedon J5. Bored a/Di.rectors. - The MIC shall be governed by a Board of Directors, which
42       shall be composed of nine (9) members, as follows:
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44             a)   Six (6) members from the founding GFls, membership seats allocated in proportion to their
45                     investments ;
46             b)   Two (2) Independent Directors; and


1             c)   The secretary of Finance as the official representative from the National Government;
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The  official  representatives  of the founding GFls  shall  be their respective  Presidents, and  the
additional representatives, if warranted on the  basis of their proportional  investments, shall  be
chosen by the Advisory Body from the senior management of the GH concerned.
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7      The Independent Members shall be chosen by the Advisory Body from the private sector.  The
8      Advisory Body  shall  ensure that the  selected  Members  of the Board  are with proven probity,
9       competence, expertise and experience in finance , economics, investments, business management,
10      or law, and are highly capable to contribute to the attainment of the objectives and purposes of the
11      NIc and NIF.
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13      The specific roles of the Members of the Board shall be as follows:
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(i)  Chaixperson and Chief Executive Officer who shall be the representative of the GFI with
the biggest fund investment;
(ii) Six (6) Regular Members; and
(iii)Two (2) Independent Members.
22      Additional Members may be admitted upon the decision of the Board pursuant to the parameters
23       and voting requirements set under the Investment and Risk Management Guidelines to be issued
24      bytheBoard.
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The specific guidelines on this Section, including the rules on termination of membership in the
Board, shall be provided in the implementing rules and regulations (IRR) of this Act.
Section  16.   Ternrl  Of Oif:fice  Of the  Board Of Di,rectors. -The te;[i[i[\ Of  office Of Who Borrld Of
Directors shall be staggered in order to ensure continuity of governance of the MIF, as follows:
(i)   Chairperson and Chief Executive Officer - Seven (7) years;
(ii)  Three (3) Regular Members -Five (5) years;
(iii) Three (3) Regular Members -Three (3) years; and
(iv) Two (2) Independent Directors -One (1) year.
The specific guidelines on this Section shall be provided in the IRR of this Act.
Section 17.  Powers and Functions Of the Board Of Directors. -The pri"fny tuncrfuon Of th:e
Board of Directors is to govern and manage the MIF, its assets, and investments in accordance
with this Act. The specific functions of the Board of Directors shall include the following:
a)   To direct the management and operations, and administration of the MIF;
b)   To approve and implement the Investment and Risk Management Guidelines and such
other  investment  policies,  guidelines,  and  parameters  to  effectively  carry  out  the
purposes of this Act;


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c)   To set minimum criteria and targets for investments;
d)   To  oversee the  investment processes  which  may  include  asset allocation, portfolio
construction, monitoring, and risk management;
e)   To approve the issuance of debt and debt-like instruments;
I)   To develop strategies (short-, medium-, and long-term) appropriate for investments;
g)   To regularly meet and consult with the Advisory Body;
h)   To engage and/or appoint an lnternational Advisory Consultant/Council whose main
responsibility  is  to  advise  the  Board  of Directors  on  its  development  strategy  and
investment business, equip executives and management with insights on geopolitical
and  macro-economic  issues,  international  financial  market  conditions,  and  global
investment trends;
i)    To engage external fund managers and investment advisors, as may be necessary, to
manage the MIF;
j)    To exclusively determine the organizational structure, staffing pattern, and number of
personnel   of   the   MIC,   define   their   duties   and   responsibilities,   and   fix   their
compensation and other emoluments, including bonuses and the performance bonus
authorized under Section 22 of this Act, notwithstanding any provisions of law, rules
and regulations, issuances, to the contrary;
k)   To  exclusively  prescribe  a  system  for  performance  standards  and  evaluation  for
officials and employees of MIC;
I)    To  exclusively  set  the  criteria  and  procedures  for  termination  of  employment  of
officials and employees for:
i.       Gross  violation   of  the  provisions  in  this  Act  or  investment  policies  and
guidelines set by the Board of Directors;
ii.       Commission of acts inimical to the MIF or the Republic of the philippines, such
as any loss suffered by the Fund caused by negligence, willful misconduct, fraud,
or actions in breach of any Investment Agreement; and/or
iii.      Failure to meet performance standards set by the Board of Directors.
in) To appoint officials and employees as may be necessary to assist the Board of Directors
in carrying out its functions;
n)   To submit regular reports on investment performance to the Advisory Body and to the
President of the Republic of the Philippines;
o)    To review and confimi the MIC/MIF financial statements;
p)   Act as Trustee of the MIF and such other assets as may be assigned to it and direct how
its assets are managed; and
q)   To perform other functions, duties and responsibilities necessary, related and incidental
to the performance of the above-mentioned powers and functions.


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Secffo# J8. 0%o"m and Meefl.#gs a/£fee Board. -The Board of Directors shall meet at least
once every month from the effectivity of this Act. It may hold special meetings to consider urgent
matters upon call of the Chairperson and Chief Executive Officer or upon initiative of at least two
(2) members of the Board of Directors.
InordertoconstituteaquoruminBoardmeetings,amajorityofthetotalmembershipoftheBoard,
or at least five (5) members, shall be present.  The approval by a majority of all members of the
Board, or at least five (5) members, shall be required to constitute a decision of the Board.
The Board of Directors  shall maintain and preserve a complete record of the proceedings and
deliberations of the Board of Directors, including the tapes and transcripts of the stenographic
notes, either in the original form or in microfilm. The meetings of the Board of Directors may be
conducted  through  modem  technologies  such  as,  but  not  limited  to,  teleconferencing  and
videoconferencing.
Section 19. Compensedon Of the Chairperson and Members Of the Board Of Directors. -The
Chairperson and Chief Executive Officer and the Members of the Board of Directors shall  be
entitledtohonorariaand/orotherreasonableallowances,and/orperdiemforeachmeetingactually
attended, and shall be reimbursed for actual and reasonable expenses incurred in the performance
of their duties and functions. The rate of the honoraria shall be fixed at a sum commensurate to the
importance and responsibility attached to the position.
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24      The salary of the Independent Members of the Board of Directors from the private sector shall be
25       fixed based on the rules set under section 27 of this Act.
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Sectr.om 20. Advisory Body. - An Advisory Body shall be composed of the Secretary of Finance,
SecretaryoftheDBM,theDirectorGeneralofNEDA/SocioeconomicPlanningSecretary,andthe
Treasurer of the Philippines.
Section 21. Powers and Functions Of the Advisory Body. The Adr.isory Body shall exerc.ise the
following powers and functions:
a)   Advise and  assist the Board of Directors in the formulation of the general  policies
related to investment and risk management, and other matters as may be necessary to
carry out the provisions and purposes of this Act;
b)   Advise and provide guidance on issues pertaining or related to the plans and projects
of the MIF; and
c)   Perform other functions, duties and responsibilities, as it may deem necessary.
The Advisory Body shall not take part in the management or control of the MIF.


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ARTICLE VI
Rewards, Incentives and Termination
Secfo# 22. Rewards ¢#d J#ce#tr.vex. -The Board of Directors, officials, employees and staff of
the  MIC  shall  be entitled to honoraria, performance  bonus, or any  similar performance-based
compensation as may be determined by the Board, based on their sound judgment, taking into
consideration, among others, the performance of the Fund, the performance of the  individual
employee or officer, and industry standards and practices.
Secfro]e23.E#ecfo/Seprrofror!.-Notwithstandingtheseparationofanofficialoremployeefrom
MIC,theprovisionofSection22shallapplytotheperformancebonusthatsaidofficeroremployee
isentitledtoreceiveonaccountofactualperformancebytheseparatedofficialoremployeeduring
the period covered by the performance bonus.
ARTICLE VII
Exemptions and Privileges
Section 24. Exemptions from the  GOCC  Governance  Act  Of 2011.  -The PTestidon Of  tlue
Republic Of the Philippines recognizes the strict requirements set for the GFls forming the MIF in
that they have higher standards of knowledge and expertise in the fields Of finance, economics,
risk, and governance, and that there is a need for flexibility to operate, function, employ and retain
employees to ensure the successful implementation Of the goals Of the MIF.  In this regard, the
GFls which form part of the MIF shall have the option to be exempted from the coverage and all
of the provisions of Republic Act No. 10149 or the "GOCC Governance Act Of 2011."
Secfro# 25. Tor E*empfrous. - Notwithstanding any laws to the contrary, the MIF and MIC,
whether as  a direct taxpayer, collecting  or rehitting  agent, all  of its funds, assets, properties,
including all accruals thereto, all revenues, income or investment earings therefrom, as well as
accruals thereto, transactions, as well as all  supplies, equipment, papers or documents shall  be
exempt from any and all forms and kinds of direct or indirect taxes, including output and input
Value Added Taxes (VAT) and Documentary  Stamp Taxes (DST), assessments, fees, charges,
customs or import duty or duties imposed by the national or local government and shall not be
liable to attachments, garnishments, levy or seizure by or under any legal or equitable process,
whatsoever, either before or after receipt by the person or persons entitled thereto.
These  exemptions  shall  continue  unless  expressly,  specifically,  and  categorically  revoked  or
repealed, and any tax assessment imposed against the MIF and MIC as of the approval of this Act
or subsequent thereto shall be null and void and considered paid and cancelled.
No tax measure of whatever nature enacted shall apply to the MIF and MIC, unless it expressly
and categorically revokes the declared policy of the State in this Act and this Section granting tax-
exemption  to  the  MIF  and  MIC.  Consequently,  all  laws,  ordinances,  regulations,  issuances,
opinions  or jurisprudence  contrary  to  or  in  derogation  of this  provision  are  hereby  deemed
repealed, superseded, and rendered ineffective and without legal force and effect.


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The exemptions provided herein  shall  not be  affected or derogated by subsequent laws to the
contrary unless this Section is expressly, specifically, and categorically revoked or repealed by law
and a provision is enacted to substitute or replace the exemption herein referred, as an essential
factor to maintain and/or protect the solvency of the fund, notwithstanding and independently of
the guarantee of the National Government to secure such solvency or liability.
Transactions of and with the MIF and MIC are likewise exempt from the documentary stamp tax
(DST).
Sectton26.ExemptiousfromtheGovermmeiutProcuremeritRoform.AlctandCompetittonLow.
Notwithstanding  any  law  or  mles,  regulations  or  other  issuances  to  the  contrary,  the  MIF
lnvestments'transactionsshallbeexemptfromtheprovisionsofRepublicActNo.9184,otherwise
known as the "Government Procurement Reform Act," and Republic Act No.  10667, otherwise
known as the "Philippine Competition Act," and their respective IRRs.
Section27.ExemptionfromthecivtlserviceLowandsalayswhardizthnAct.-TheclREoers
and employees of the MIC shall be exempt from Civil Service laws , rules and regulations. Further,
they  shall  be exempt from the provisions of Republic Act No. 6758, otherwise  known  as the
"Salary Standardization Act", and succeeding laws on salary standardization.
Notwithstandinganylaworrules,regulations,orotherissuancestothecontrary,thecompensation
of the officers  and key personnel  of the MIC  shall  be  set based on  an  objective classification
consistent with international  standards for compensating investment management professionals
managing global assets, taking into consideration the importance and responsibilities attached to
the respective positions.
Sectr.o„ 28. Desis"afro„ ¢nd Seco#dJ„e#f.  - The  MIC  may  enlist the  assistance  of the GFls
composing  the  Colporation  in  achieving  the  objectives  under  this  Act.  This  includes  the
designation or secondment of their respective personnel to the MIC, as may be necessary.
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31      The designation of the respective GFls' personnel to the MIc involves the imposition of additional
32      and/or higher duties to be performed by said personnel for the MIC which is temporary and can be
33      terminated anytime at the pleasure of the appointing officer/authority. Designated personnel shall
34      continue  to  receive  their  salaries,  benefits,  and  emoluments  from  their  respective  offices  or
35       agencies.
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37      The secondment of the GFls' persounel to the MIc involves the movement of said persounel from
38      their mother agencies and offices to the MIC, which is temporary in nature, which may or may not
39       require  the  issuance  Of  an  appointment,  and  which  may  or  may  not  involve  increase  in
40      compensation   and   benefits.   Seconded   personnel   shall   receive,  in  lieu   of  their  respective
41      compensation from their respective agencies or offices, the  salaries, emoluments and all  other
42       benefits which their positions are entitled to receive from the MIC.
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ARTICLE VIII
Distribution of Net Profits


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5e.:Pp 2.? ..Distribuf ro_n Of t_he N_e_! Prof its Of the Mahariiha Investments Corporaf ron. - The
MIC shall be exempt from Republic Act No. 7656, otherwise known as the "Dividends Law of
1994."TheBoardofDirectorsshallhavethediscretiononhowmuchshallbedistributedasprofits
for each Of the GFls and how much thereof shall be carried to its surplus.
ARTICLE IX
Financial Reporting Framework and Audit of Records
Secfrori 30. Fi.ro¢"cieJ Reporfug Froweworfe.  - The financial statements and reports shall be
prepared , upon the advice of the Advisory Body, in accordance with pertinent provisions of this
Act and its IRR, and international financial reporting standards and principles.
Secfrom3J.EmgrgemeJ®fo/¢"J#fem¢JAndftor.-TheBoardshallappointanauditor,whoshall
provide written interim financial and management reports as requested by the Advisory Body.
18      Secfo# 32. E#g¢geJme#{ a/¢# ExfemalA%dfror. -The Board shall engage, for each accounting
19      period or as soon as practicable after the commencement of the relevant accounting period, an
20      internationally recognized auditing firm to be the External Auditor Of the Fund and to audit its
21       financial statements.
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a.   Be engaged for a term of three (3) years;
b.   Be eligible for re-engagement; and
c.   Hold  office  on  such  terms  and  conditions  as  are  determined  by  the  Board  of
Directors.
Secfro# 33. Azid# dy ffee Co"missz.on on And#. - The books and accounts Of the MIC shall be
subject to the examination and audit of the Commission on Audit pursuant to Article IX of the
1987  Philippine  Constitution.  All  financial  transactions  shall  be  governed  by  the  applicable
government laws, rules, and regulations.
ARTICLE X
Reports and Records
Section34.RepordngtothePresidentOfthePhilippines-TheMIFinvestmeutzichvitiesshallbe
reported to the President not later than seven (7) days after each quarter. The MIC shall prepare its
financial  statements and submit copies thereof to the President, for information, not later than
seven (7) days after each month.


Section35.ProvisionforAccessRIghtsandReteutionPeriodOfRecords.-Therecordsontlue
MIC pertaining to its investment activities shall be secured and maintained pursuant to the rules
of the National Archives of the Philippines. Access to the records shall be upon approval Of the
Board of Directors or by express provision of the law.
ARTICLE RI
Miscellaneous Provisions
Secft.o#36.Approprfu.o#s.-TheamountofTwenty-FiveBillionPesos(PhF25Billion)ishereby
appropriated to cover the initial contribution Of the National Government to the MIF, to be sourced
from funds actually available as certified by the National Treasurer.  Thereafter, such sums as may
be necessary for the additional  contributions of the National  Government to the MIF shall  be
included in the annual General Appropriations Act or supplemental appropriations, as the case
may be, subject to the budget preparation process, and authorization by Congress.
Se_capn37.Ipep¥mexptin_gRulesandRegulations.-W.ENinnjinety(90)daysfrontheeffectivrty
of this Act, the Board Of Directors shall promulgate the necessary rules and regulations for the
implementation of this Act.
Secfro#  38.  Sepanchi.Jrty  CJ¢usc.  -    If  any  provisions  Of  this  Act  are  declared  invalid  or
unconstitutional , the remaining parts or provisions not affected shall remaln valid.
Secfro# 39. RepcaJrfug Chause. -All acts, executive orders, administrative orders, proclamations,
rulesandregulationsorpartsthereofinconsistentwithanyoftheprovisionsofthisAct,arehereby
expressly repealed or modified accordingly.
Secfrom 40. E#ecft.vrty. -This Act shall take effect immediately upon its publication in the Official
Gazette or in a newspaper of general circulation in the Philippines.
Approved,