NINETEENTH CONGRESS OF THE REPUBLIC )
OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
Senate Bill No. 1814
(©fficp of tl)f fe‘ ‘ 1 'tnvp
23 JAN 31 P 3 -35
receivldbv.
Introduced by: Senator Raffy T. Tulfo
AN ACT ESTABLISHING THE MAHARLIKA INVESTMENT FUND, PROVIDING 
FOR THE MANAGEMENT, INVESTMENT, AND USE OF THE PROCEEDS OF 
THE FUND, AND APPROPRIATING FUNDS THEREFOR
Explanatory Note
In 2022, the Philippine economy expanded by 7.7 % which was buoyed by 
strong domestic demand and the reopening of our economy. However, despite our 
country's economic resiliency, the inflation rate increased to 5.4 % in the first ten 
months of the previous year due to accelerated global commodity prices and currency 
depreciation.
In order to achieve full economic recovery, the proposed bill seeks for the 
establishment of the Maharlika Investments Fund (MIF) which is a sovereign wealth 
Fund (SWF) that will be used to stabilize budgets, promote economic development 
and increase our country's savings. The establishment of the Maharlika Investments 
Fund (MIF) is in line with the National government's 2022-2028 Medium-Term Fiscal 
Framework (MTFF). The MTFF seeks to achieve a single digit poverty level and 
increase our gross domestic product (GDP) by the end of 2028. The SWF would 
enable Government Financial Institutions (GFIs), including the Land Bank of the 
Philippines (LBP) and the Development Bank of the Philippines (DBP) the opportunity
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to ensure their respective funds' asset aiiocation wiii be maximized by obtaining the 
best absolute return and feasible financial gains on their respective investments and 
satisfying the requirements of liquidity and security.
Currently, Asian countries such as Singapore, China, Hong Kong, South Korea, 
Malaysia, Indonesia, Taiwan, Vietnam and East Timor have a Sovereign Wealth Fund. 
The MWF can be used as a tool to ensure economic growth through stable investment 
returns with appropriate risk limits that will preserve and enhance the long-term value 
of the fund.
The passage of this measure is thus earnestly sought.
RAFFY T. TULFi


NINETEENTH CONGRESS OF THE REPUBLIC )
OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
Senate Bill No. 1^14
ot tiK S^i'CvftnrjJ
23 JAN 31 P3 35
RECEiVLO BY,
Introduced by: Senator Raffy T. Tulfo
AN ACT ESTABLISHING THE MAHARLIKA INVESTMENT FUND, PROVIDING 
FOR THE MANAGEMENT, INVESTMENT, AND USE OF THE PROCEEDS OF 
THE FUND, AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Title. - This Act shall be known as the "Maharlika Investment Fund Act"
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Sec. 2. Declaration of Policy. - It is the policy of the State to create jobs, promote
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trade and investments foster technological transformation, strengthen
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connectivity, expand infrastructure, achieve energy and food security. The State
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recognizes the vital role of various investments in financial assets in promoting
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economic growth, accelerating job creation, and improving the welfare of
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Filipinos. The State acknowledges the need to preserve and optimize the use of
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government financial assets, and promote intergenerational management


thereof for macroeconomic stability.
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Towards this end, the State shall establish an independent Maharlika Investment Fund 
by investing national funds, and coordinating and strengthening the investment 
activities of the country's top- performing Government Financial Institutions (GFIs) to 
promote economic growth and social development.
ARTICLE I 
Definition of Terms
Sec. 3. Definition of Terms. - As used in this Act:
a) Advisory Body refers to the body established under this Act which shall 
provide guidance, counsel and advice to the Board of Directors of the Maharlika 
Investment Corporation (MIC);
b) Board of Directors (Board) refers to the governing body of the MIC;
c) 
Founding GFIs refer to the Land Bank of the Philippines (LBP) and 
Development
Bank of the Philippines (DBP);
d) Funding Sources refers to the investment required of the founding GFIs, the 
National Government (NG), Philippine Amusement and Gaming Corporation 
(PAGCOR), declared dividends of the Bangko Sentral ng Pilipinas (BSP), and such 
other sources that may contribute to finance the MIF;
e) Independent Director refers to a person who is independent of management 
and the controlling shareholder, and is free from any business or other relationship


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which could, or could reasonably be perceived to, materially interfere with his 
exercise of independent judgment in carrying out his responsibilities as a director;
f) Maharlika Investment Fund (MIF or Fund) refers to the fund created under 
this Act;
g) Maharlika Investment Corporation (MIC) refers to the State investment 
body,
created under this Act which shaii be responsible for the overall governance and 
management of the MIF; and
h) "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 II
Maharlika Investment Fund
Sec. 4. Establishment of the Maharlika Investment Fund. - There is hereby 
created a Maharlika Investment Fund (MIF), an independent fund, that adheres to the 
principles of good governance, transparency, and accountability. Initially, the Fund 
shall be sourced from the investible funds of select GFIs, from contributions of the 
National Government, from the declared dividends of the BSP and other sources of 
funds as provided in this Act.
The Fund shall be used to invest on a strategic and commercial basis in a manner
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designed to promote fiscal stability for economic development, and strengthen the 
top-performing GFIs through additional investment platforms that will help attain the 
National Government's priority plans.
Sec. 5. Ownership of the Mahariika Investment Fund. - The legal ownership of 
the MIF shall pertain to the Fund investors in proportion to their contributions.
Sec. 6. Objectives of the Mahariika Investment Fund. - The objectives of MIF 
are to promote economic development by making strategic and profitable investments 
in key sectors to preserve and enhance long-term value of the Fund, obtain the optimal 
absolute return and achievable financial gains on its investments, and to satisfy the 
requirements of iiquidity, safety/security, and yieid in order to ensure profitability. In 
pooling the investible funds from the GFIs 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 III
Mahariika Investment Corporation
Sec. 7. Estabiishment of the Mahariika Investment Corporation. - There is 
hereby created the Mahariika Investment Corporation (MIC), an independent 
corporate body, that shall act as a for the purpose of mobilizing and utilizing the MIF 
for investments in transactions that will enable the Fund to reap optimal 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 of 
transparency and accountability. In addition to the Codes of Ethical Standards and 
Proper Conduct that the Board shall establish, the Corporation shall abide by the fit 
and proper rule under the Implementing Rules and Regulations of Republic Act No.


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2629 or the Investment Company Act, Ethical Standards under the Securities 
Regulation Code, and Ethical Standards set by the International Organization of 
Securities Commissions (IOSCO) and other significant international organizations of 
investment entities.
All transactions of the MIC shall abide by the arm's length principle and the prudent 
person rule. The provisions of Republic Act No. 8799 or Securities Regulation Code, 
Republic Act No. 8791 or the General Banking Law, Republic Act No. 2629 or the 
Investment Company Act, their respective implementing rules and regulations, and 
other relevant laws, rules, regulations, and issuances by regulating authorities 
governing transactions with and among directors, officers, 
stockholders and related interests shall apply to the MIC.
Sec. 8. Place of Business. - The MIC shall have its principal place of business in 
Metro Manila, but may maintain branches, agencies and correspondents in such other 
places, within and without the Philippines, as the proper conduct of its business may 
require.
Sec. 9. Corporate Powers. - The MIC is hereby authorized to adopt, alter, and use 
a corporate seal which shall be judicially noticed; to enter into contracts; to lease or 
own real and personal property, and to sell or otherwise dispose of the same; to sue 
and be sued; and otherwise to do and perform any and all things that may be 
necessary or proper to carry out the purposes of this Act.
The MIC may acquire and hold such assets and incur such liabilities in connection with 
its operations authorized by the provisions of this Act, or as are essential to the proper 
conduct of such operations.
The MIC may compromise or release, in whole or in part, any claim of or settled liability 
to the MIC, regardless of the amount involved, under such terms and conditions as 
may be prescribed by the Board of Directors, upon favorable recommendation of the


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Advisory Body, to protect the interests of the MIC and the integrity of the MIF.
Sec. 10. Functions of the Maharlika Investment Corporation. - In carrying out 
its objectives and functions, the MIC shall;
a) Establish a diversified portfolio of investments in the local and global financial 
markets
and in other assets that promote the objectives of the Fund;
b) Manage and invest the initial and future contributions to the Fund in accordance 
with this
Act;
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 internationally-accepted standards and principles of transparency and 
accountability.
Sec. 11. Capitalization and Funding. - The initial capitalization shall be sourced 
as follows:
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I. 
LBP - Fifty billion pesos (P50 billion); and
II. 
DBP - Twenty-five billion pesos (P25 billion)
Each founding GFI may increase its investment above the required equity contribution.
The founding GFIs shall be entitled to prudential and other regulatory reliefs, as may 
be determined by the BSP, to promote the financial soundness of these financial 
institutions while contributing to the overall objective of the MIF.
Investments of contributors may be in the form of marketable or convertible securities, 
and other forms, as may be determined by the Board of Directors: Provided, That 
security or debt instruments issued by the MIC to GFIs shall be guaranteed by the NG: 
Provided, further, That all other instruments of MIC shall be subject to laws, rules, 
and regulations on the contracting of debt and issuance of guarantees by GFIs. Other 
GFIs and government-owned or -controlled corporations may be authorized to 
contribute to the MIF, subject to their respective investment and risk management 
strategies, additional funding may likewise be sourced from investments of private 
financial institutions and corporations, as may be determined by the Board of 
Directors.
The manner of attribution of equity, such as units of participation, due to subsequent 
contributions to the fund shall be determined in the IRR of this Act.
Subsequent annual contributions to the fund shall be provided as follows:
i. For the first and second fiscal year upon effectivity of this Act, the BSP 
shall remit one hundred percent (100%) of its declared dividends, as computed 
under R.A. No. 7653, as amended by R.A. No. 11211, to the Fund. In the 
succeeding fiscal years, the BSP shall remit fifty percent (50%) of its declared 
dividends to the Fund and the remaining fifty percent (50%) to the NG to fund


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the increase in the capitalization of BSP in accordance with Section 2 of R.A. 
No. 7653, as amended by R.A. No. 11211, until the increase in the capitalization 
of BSP has been fully paid, thereafter, BSP shall remit one hundred percent 
(100%) of its declared dividends to the Fund.
ii. 
PAGCOR and other government-owned gaming operators shall 
contribute at least ten percent (10%) of gross gaming revenue streams;
iii. 
Other sources such as royalties and/or special assessments on natural 
resources based on the fiscal regime to be implemented by the national 
government, proceeds from privatization of government assets, and borrowings 
by the MIF.
The foregoing annual contributions shall be subject to the automatic review of the 
Secretary of Finance every five (5) years, taking into consideration the adequacy of 
the fund in relation to the objectives of this act, the fiscal condition of the NG the 
condition of the investing GFIs, GOCCs, and other government entities in relation to 
their exposure to the fund and the overall economic environment.
Under no circumstance shall the GOCCs providing for the social security of government 
employees, private sectors, workers and employees, and other sectors and subsectors, 
such as but not limited to the Government Service Insurance System, Social Security 
System, and Flome Development Mutual Fund, be requested or required to contribute 
to the MIF. To protect the retirement and other social security benefits of their 
members, no part of the funds of said GOCCs shall accrue to the MIF.
Sec. 12. Administrative and Operational Expenses of the Mahariika 
Investment Corporation. -
The Board of Directors of the MIC is authorized to disburse from the Fund such 
amounts as may be necessary for administrative and operating expenses, the total of 
which shall not exceed two percent (2%) of funds managed: Provided, That the Board


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of Directors shall set annual targets to reduce operating and administrative expenses 
as a share of funds managed: Provided, further, That the Secretary of Finance may 
reduce the allowed expense ratio.
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 two 
percent (2%) of its initial capitalization.
ARTICLE IV 
Investments
Sec. 13. Allowable Investments. - 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) Islamic investments, such as Sukuk bonds;
f) Joint Ventures or Co-Investments;
g) Mutual and Exchange-traded Funds invested in underlying assets;
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h) Commercial real estate and infrastructure projects;
i) Loans and guarantees to, or participation into joint ventures or consortiums with 
Filipino and foreign investors, whether in the majority or minority position in 
commercial, industrial, mining, agricultural, housing, energy, and other enterprises, 
which may be necessary or contributory to the economic development of the country, 
or important to the public interest; 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 investments and spending that will affect: (1) the Balance of Payments; and (2) 
monetary aggregates, like those which impact domestic liquidity and reserve money.
In no case shall the MIC acquire a controlling stake in its investee entities. In investee 
entities where the MIC acquires a position, the MIC may participate in corporate 
governance and policymaking at the level of the Board of Directors or Trustees of the 
investee entity, but shall not be directly or actively involved in its day-to-day 
management and operations.
Sec. 14. Prohibited Investments. - In no case shall the MIC, in whatever 
manner or devise, invest in the following:
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(a) Activities and investments reiated to, and entities with a record of 
commission of human
rights vioiations, inciuding but not iimited to indigenous peopies, farmers,
fisherfoik, and
labor;
(b) Activities and investments related to, and corporations involved in the 
production of cluster
munitions, nuclear arms, intercontinental ballistic missiles, and similar 
technologies and equipment;
(c) activities and investments resulting in, corporations with a record of serious 
degradation of
the environment; and
(d) Similar activities, investments and corporations.
Sec. 15. Investment Policy. - 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;
(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; 
(0 Matters specific to rules and regulations where investments are domiciled;
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(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 MIF.
In the formulation of its investment policies, the Board of Directors shall be guided by 
the principle that priority must be given to investing in government infrastructure and 
other developmental projects which would yield the highest return on investment 
coupled with the developmental impact of lower cost of living and lower cost of basic 
commodities. 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: Provided, That, should a particular sub-fund remain unprofitable for a period 
of three (3) years, said sub-fund shall be closed.
Sec. 16. Limitations and Safeguards on the Mahariika Investment Fund. -
The management of the MIF shall be subject to a set of investment policies, guidelines, 
and risk management limits and procedures, as approved by the Board of Directors, 
upon due consideration of the recommendations of the Advisory Body. Investment 
and risk management strategies of the MIC shall be in line with the policies and 
objectives hereunder stated to ensure the long-term viability of the Fund.
Sec. 17. Fees and Charges on the Estabiishment of the Mahariika
Investment Fund. - Third party fees and all charges incurred in connection with the
establishment and effective management of the MIF, such as custody fees, transaction
fees, clearing fees, and management fees payable to external fund managers, shall
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be charged against the MIF, in accordance with the applicable policies on fund 
disbursements.
Sec. 18. Withdrawals. - Subject to the exit mechanism guideiines to be set by the 
Board and concurred to by the Advisory Body, withdrawals from the Fund shall be 
made only after at least five (5) years of investment activities. The notice period for 
any withdrawai is one year or shortened as determined by the Board. The capital of 
the MIC shall not be withdrawn if its effect would be to diminish the MIF to an amount 
less than the real value of the MIF at its inception.
ARTICLE V 
GOVERNANCE
Sec. 19. Board of Directors. - There shall be fifteen (15) members of the Board 
composed as follows:
(a) The Secretary of Finance shall sit as the chairperson;
(b) Chief Executive Officer of the MIC;
(c) President of LBP;
(d) President of the DBP;
(e) Six (6) regular members, representing the contributors to the fund, with the seats 
distributed
in proportion to their corresponding investments; and
(0 Five (5) independent directors from the private sector, the academe, business 
sector, and 
investment sector.
The independent directors shall be chosen by the advisory body. The advisory body
shaii ensure that the seiected members of the Board are with proven probity,
competence, expertise and experience in finance, economics, investments, business
management, or law, and are highly capable to contribute to the attainment of the
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objectives and purposes of the MIF.
The regular members of the Board shall be citizens of the Philippines, at least thirty- 
five (35) years of age, and must be of good moral standing and reputation, of 
recognized probity and independence, and have substantial experience and expertise 
in any of the following: (i) corporate governance and administration, (ii) investment 
in financial assets, (iii) management of investments in the global and local markets.
The specific guidelines in this Section, including the rules on appointment, election 
and termination of membership in the Board, shall be provided in the implementing 
rules and regulations (IRR) of this Act.
Sec. 20. Powers and Functions of the Board of Directors. - The primary 
function of the Board of Directors is to govern and manage the MIC, its assets, and 
investments in accordance with this Act. As the specific functions of the Board shall 
include the following:
(a) To direct the management and operations, and administration of the MIC;
(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;
(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;
(f) 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 International Advisory Consultant/Council whose
main responsibility is to advise the Board on its development strategy and investment
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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 28 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;
(l) 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.
(m) To appoint key and critical officials and employees as may be necessary to assist 
the Board of Directors in carrying out its functions;
(n) To submit semestral reports on investment performance to the Advisory Body and 
to the President of the Republic of the Philippines;
(o) To review and certify the MIC/MIF financial statements;
(p) Act as Trustee of the MIF and such other assets as may be assigned to it and direct
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how its assets are managed;
(q) To constitute an audit committee which shall recommend to the Board and to 
shareholders during the annual shareholders' meeting the engagement of an external 
auditor and oversee the internal and external audits mandated under this act; and
(r) To perform other functions, duties and responsibilities necessary, related and 
incidental to the performance of the above-mentioned powers and functions.
Sec. 21. Duties and Qualifications of the Chief Executive Officer (CEO). - The
CEO shall direct and supervise the operations and internal administration of the MIC, 
and shall be charged with the risk management, financial performance, human 
resources, accounting and legal affairs of the corporation. Such powers and duties 
include:
(i) 
Prepare the agenda for the meetings of the BOD and to submit for the 
consideration of the BOD the policies and measures which are necessary to 
carry out the purposes and provisions of this Act;
(ii) Execute and administer the policies and measures approved by the BOD;
(iii) Develop the MIC's business prospects by studying economic trends and 
revenue opportunities; projects acquisition and expansion prospects; and 
oversee financial performance and risk profiles while ensuring that all of 
regulatory obligations are met;
(iv) Appoint and fix the remunerations and other emoluments of rank and file 
employees and other personnel not holding key and critical positions in 
accordance with the position and compensation plans approved by the BOD, as 
well as to impose disciplinary measures upon personnel of the MIC: Provided, 
That the removal of personnel shall be with the
approval of the BOD; and
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(v)Exercise such other powers as may be vested by the Board of Directors.
The CEO, in the discharge of its functions, may delegate certain of his administrative 
responsibilities to other officers of the MIC.
The CEO shall work closely with the executive management and the Board and must 
have (i) exceptional experience and expertise in corporate management, financial 
planning strategy, strategic planning and vision, market and business development, 
budget development; (ii) has at least ten (10) years management experience, 
including extensive commercial lending/credit administration experience; (iii) in-depth 
understanding of the industry including risk management, compliance, and regulatory 
requirements; (iv) and strategic knowledge of cash flow and capital planning 
management.
Sec. 22. Duties and Qualifications of the Chief Investment and Operating 
Officer (CIOO). - The CIOO is responsible for regular administration duties of all 
investment files, communicating investment strategy and policies, managing and 
developing a team of financial analysts and investment professionals, supervising 
risk management across portfolios and that sound investment policies are followed. 
The CIOO must have a degree in finance or a relevant experience in the field and has 
proven expertise in managing a team of financial analysts and investment 
professionals.
Sec. 23. Quorum and Meetings of the 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 or upon initiative of at least 
two (2) members of the Board of Directors.
In order to constitute a quorum in Board meetings, a majority of the total membership 
of the Board, or at least eight (8) members, shall be present. The approval by a
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majority of all members of the Board, or at least eight (8) 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 modern technologies 
such as teleconferencing and videoconferencing.
Sec. 24. Compensation of the Chairperson and Members of the Board of 
Directors. -The Chairperson and the Members of the Board of Directors shall be 
entitled to honoraria and/or other reasonable allowances, and/or per diem for each 
meeting actually attended, and shall be reimbursed for actual and reasonable 
expenses incurred in the performance of their duties and functions. The rate of the 
per diem shall be fixed by the Board. The maximum per diem per Regular or Special 
Board meeting actually attended provided to members of the Board of Directors shall 
be based on the size of the Corporation but not to exceed the maximum annual 
amounts as received by members of the Monetary Board of the BSP.
The salary of the Independent Members of the Board of Directors from the private 
sector shall be fixed based on the rules set under Section 28 of this Act.
Sec. 25. Risk Management Unit. - In accordance with the manner provided in the 
MIC by-laws, the Board of Directors shall organize a Risk Management Unit composed 
of five (5) members as follows: one (1) professional with proven competence and 
experience in finance, economics, investment, business management, or law, and 
must exhibit independence and objectivity; and four (4) members consisting of two 
(2) senior executives of the MIC, one (1) independent director, and one (1) auditor.
The Risk Management Unit shall ensure that the MIC is taking the appropriate measure
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to achieve a prudent balance between risk and reward in both ongoing and new 
business activities, taking careful consideration of risk identification, risk measurement 
and assessment, risk mitigation, risk reporting and monitoring, and risk governance 
towards a risk-informed approach to the capitalizations of the MIC.
Sec. 26. Advisory Body. - An Advisory Body is hereby created which shall be 
composed of the Secretary of the DBM, the Director General of NEDA, and two (2) 
members from the private sector: the President of the Philippine Stock Exchange and 
the President of the Bankers Association of the Philippines.
Sec. 27. Powers and Functions of the Advisory Body. - The Advisory Body shall 
exercise 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.
ARTICLE VI
Rewards, Incentives and Termination
Sec. 28. Rewards and Incentives. - The 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 and as approved by the President
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of the Philippines, taking in consideration, among others, the performance of the Fund, 
the performance of the individual employee or officer, and industry standards and 
practices. The criteria for the grant of rewards and incentives shall be determined in 
the IRR, including the formula for the computation of any amount that will be granted 
to the Board of Directors, officials, employees, and staff of the MIC. Considering the 
nature of the fund's intended investments, the criteria and formula shall consider long­
term performance of the Fund, acquisition and retention of talent, and the rates of 
comparators.
Sec. 29, Effect of Separation. - Notwithstanding the separation of an official or 
employee from MIC, the provision of Section 28 shall apply to the performance bonus 
that said officer or employee is entitled to receive on account of actual performance 
by the separated official or employee during the period covered by the performance 
bonus.
ARTICLE VII
Exemptions and Privileges
Sec. 30. Exemptions from the GOCC Governance Act of 2011. - The President 
of the Republic of the Philippines recognizes the strict requirements set for the GFIs 
forming the MIC 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 MIC. In this regard, MIC shall be exempted from 
the coverage and all of the provisions of Republic Act No. 10149 or the "GOCC 
Governance Act of 2011" except Sections 15 in accordance with Sec. 19 (e) of this 
Act, 19, 25, and 26 on the fiduciary duties of the board and officers, full disclosure, 
and special audit.
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Sec. 31. Tax Exemptions. - Any existing law to the contrary notwithstanding, the 
following transactions and assets of the MIC and MIF shall be exempt from local and 
national taxes, direct and indirect, that may be imposed under the Local Government 
Code of 1991, and the National Internal Revenue Code of 1997, as amended, pursuant 
to the regulations to be issued by the Department of Finance, upon recommendation 
of the Bureau of Internal Revenue:
(a) All funds, assets, and properties;
(b) All revenues, income, or investment earnings, as well as accruals thereto;
and
(c) Purchase of supplies, equipment, papers, or documents.
Importation of supplies and equipment by the MIC and MIF shall be exempt from 
customs duties, in accordance with the provisions of Republic Act No. 10863, 
otherwise known as the "Customs Modernization and Tariff Act".
Provided, That the exemptions granted herein shall be utilized actually, directly, 
exclusively, and solely for the transactions of the MIC and MIF as distinct legal entities, 
and not for the purposes of its executives, employees, third parties, and other distinct 
taxable entities.
Sec. 32. Exemptions from the Government Procurement Reform Act. -
Notwithstanding any law or rules, regulations or other issuances to the contrary, the 
procurement or engagement of the professional or technical services needed in the 
selection of investments authorized under Section 10 of this Act such as fund 
management, investment and analysis and advisory underwriting, securities brokerage 
and dealership, capital market and equity research analysis, and other similar services 
necessary in the selection of allowable investments under Section 13 of this Act shall 
be exempted from the provisions of R.A. No. 9184 or the Government Procurement 
Reform Act and its implementing rules and regulations.
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Sec. 33. Exemption from the Salary Standardization Act -
The officers and employees of the MIC shall be exempt from the provisions of Republic 
Act No. 6758, otherwise known as the "Salary Standardization Act", and succeeding 
laws on salary standardization.
Notwithstanding any law or rules, regulations, or other issuances to the contrary, the 
compensation 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.
Sec. 34. Designation and Secondment - For the first five (5) years of its 
operations, the MIC Board, upon the recommendation of the CEO, shall authorize GFI 
non-executive personnel to the MIC, as may be necessary, subject to existing 
guidelines on secondment of the Civil Service Commission (CSC).
The designation of the respective GFIs' personnel to the MIC involves the imposition 
of additional and/or higher duties to be performed by said personnel for the MIC which 
is temporary and can be terminated anytime at the pleasure of the appointing 
officer/authority. Designated personnel shall continue to receive their salaries, 
benefits, and emoluments from their respective offices or agencies.
The secondment of the GFIs' personnel to the MIC involves the movement of said 
personnel from their mother agencies and offices to the MIC, which is temporary in
nature, which may or may not require the issuance of an appointment, and which may
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or may not involve increase in compensation and benefits. Seconded personnel shall 
receive, in lieu of their respective compensation from their respective agencies or 
offices, the salaries, emoluments and all other benefits which their positions are 
entitled to receive from the MIC.
ARTICLE VIII 
Distribution of Net Profits
Sec. 35. Distribution of the Net Profits of the Mahariika Investment Fund 
Corporation. -In lieu of taxes and dividend remittance to the National Government, 
at least twenty five percent (25%) of the net profits of the MIC shall be directly 
distributed in the form of poverty and subsistence subsidies to families falling below 
the poverty threshold as determined by the Philippine Statistics Authority (PSA), 
beginning with the 18.1% of the population, or 19.99 million Filipinos living below the 
poverty threshold of about PI2,030 per month for a family of five (5), per the 2021 
Family Income and Expenditure Survey of the PSA: Provided, That the remainder of 
the net profits shall be remitted to the National Government, to be earmarked for 
social welfare programs and projects, excluding infrastructure projects: Provided, 
further, That the share of the net profits remitted to the National Government shall 
not exceed the proportion of investments to the total fund attributable to the National 
Government.
Sec. 36. Computation of Profits and Losses of the MIC. - The profits and losses 
of the MIC shall be recognized in its books. The recognition of profits and losses of 
the MIC shall be attributable to the GFIs and investors which shall be subject to their 
respective accounting and auditing procedures.
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ARTICLE IX
Financial Reporting Framework and Audit of Records
Sec. 37. Financial Reporting Framework. - 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 
(IFRS) and principles.
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Sec. 38. Engagement of an Internal Auditor. - The Board shall appoint an 
internal auditor, who shall provide written interim financial and management reports 
as requested by the Advisory Body. The internal auditor shall be independent from the 
management of the MIC and shall be under the direct control and supervision of the 
Board of Directors. The CEO shall ensure that the internal auditor, including the staff, 
shall have access to all documents and information pertinent to the audit.
Sec. 39. Engagement of an External Auditor. - The Board shall engage, for each 
accounting period or as soon as practicable after the commencement of the relevant 
accounting period, an internationally recognized auditing firm to be the External 
Auditor of the Fund and to audit its financial statements.
The External Auditor shall:
(a) Be engaged annually;
(b) Be eligible for re-engagement; and
(c) Hold office on such terms and conditions as are determined by the Board of 
Directors.
Sec. 40. Audit by the Commission on Audit. - 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. The COA shall
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prescribe the guidelines of the audit of the MIC and the Fund under its management 
in accordance with international best practices. In defining the scope of its audit, the 
COA shall coordinate with the External Auditor as provided under Section 37 of this 
Act.
Sec. 41. Disposal of Assets. — Notwithstanding any law, rules, regulations, or other 
issuances to the contrary, the disposal by MIC, pursuant to its mandate and functions, 
of shares, securities, and other interests and investments, shall not be covered by 
existing laws and regulations on disposal of government assets. The aforementioned 
financial assets shall be considered as forming part of MIC's inventory of assets held 
in the regular course of its business activities.
ARTICLE X 
Reports and Records
Sec. 42. Oversight Committee. - There shall be created a Maharlika Investment 
Fund Joint Congressional Oversight Committee (MIF-JCOC) to oversee, monitor, and 
evaluate the implementation of this Act. The MIF-JCOC shall be composed of five (5) 
members each from the House of Representatives and the Senate. The MIF-JCOC shall 
be co-chaired by the Chairpersons of the House Committee on Banks and Financial 
Intermediaries and the Senate Committee on Banks, Financial Institution and 
Currencies.
The Speaker and Senate President shall designate the other four (4) members of the 
MIF-JCOC of the House and the Senate from among the members on the House 
Committee on Banks and Financial Intermediaries and the Senate Committee on 
Banks, Financial Institution and Currencies, at least one member of which shall be 
from the minority.
Sec. 43. Right to freedom of information of the public. - All documents of the 
MIF and the MIC, shall be open, available, accessible to the public, including but not
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limited to:
(a) All investments thereof, whether planned or under negotiation by the mic 
and on the
portfolio of the MIF;
(b) The statements of assets and liabilities (SALNs) of the members and officials 
of the board
of directors, risk management unit, and advisory board;
(c) The SALNs of those who appointed and designated the said members and 
officials;
(d) Audit documents from the internal auditor, external auditor, and the COA; 
and
(e) Similar documents and information.
Sec. 44. Provision for Access Rights and Retention Period of Records. - The
records on the MIC pertaining to its investment activities shall be secured and 
maintained pursuant to the rules of the National Archives of the Philippines. The 
disclosure rules under Republic Act No. 8799 or the Securities Regulation Code, 
Republic Act No. 11232, or the Revised Corporation Code, and other relevant laws, 
rules, and regulations shall apply to the MIC. The MIC shall be covered by Executive 
Order No. 2, s. 2016.
ARTICLE X 
Reports and Records
Sec. 42. Oversight Committee. - There shall be created a Maharlika Investment 
Fund Joint
Congressional Oversight Committee (MIF-JCOC) to oversee, monitor, and evaluate 
the implementation of this Act. The MIF-JCOC shall be composed of five (5) members 
each from the House of Representatives and the Senate. The MIF-JCOC shall be co­
chaired by the Chairpersons of the House Committee on Banks and Financial
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Intermediaries and the Senate Committee on Banks, Financial Institution and 
Currencies.
The Speaker and Senate President shall designate the other four (4) members of the 
MIF-JCOC of the House and the Senate from among the members on the House 
Committee on Banks and Financial Intermediaries and the Senate Committee on 
Banks, Financial Institution and Currencies, at least one member of which shall be 
from the minority.
Sec. 43. Right to freedom of information ofthepubiic. - All documents of the 
MIF and the MIC, shall be open, available, accessible to the public, including but not 
limited to:
(a) All investments thereof, whether planned or under negotiation by the mic and on 
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portfolio of the MIF;
(b) The statements of assets and liabilities (SALNs) of the members and officials of 
the board
of directors, risk management unit, and advisory board;
(c) The SALNs of those who appointed and designated the said members and officials;
(d) Audit documents from the internal auditor, external auditor, and the COA; and
(e) Similar documents and information.
Sec. 44. Provision for Access Rights and Retention Period of Records. - The
records on the MIC
pertaining to its investment activities shall be secured and maintained pursuant to the 
rules of the National Archives of the Philippines. The disclosure rules under Republic 
Act No. 8799 or the Securities Regulation Code, Republic Act No. 11232, or the Revised 
Corporation Code, and other relevant laws, rules, and regulations shall apply to the 
MIC. The MIC shall be covered by Executive Order No. 2, s. 2016.
Sec. 45. Reports of Government Financial Institutions to stakeholders. -
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Government financial institutions with investments in the MIC shall include the 
performance of their investments, a risk assessment of their exposure and strategies 
to manage such risks, and other relevant information in their annual reports.
Sec. 46. Compliance with Santiago Principles. - The audits required under this 
article shall include an assessment of the implementation of the Santiago Principles 
and recommendations to improve compliance with such principles.
ARTICLE XI 
Offenses and Penalties
Sec. 47. Violation of Disqualification Provision; Penalties. - When, despite the 
knowledge of the existence of a ground for disqualifications as provided in Section 19 
and Section 22 of this Act, a director or officer willfully holds office, or willfully conceals 
such disqualification, such director, trustee or officer shall be punished with a fine 
ranging from ten thousand pesos (P10,000.00) to two hundred thousand pesos 
(P200,000.00) at the discretion of the court, and shall be permanently disqualified 
from being a director or officer of the Board. When the violation of this provision is 
injurious or detrimental to the public, the penalty shall be a find ranging from twenty 
thousand pesos (P20,000.00) to four hundred thousand pesos (P400,000.00).
Sec. 48. Internal Auditor Collusion; Penalties. - An independent internal auditor 
who, in collusion with the corporation's directors or representatives, certifies the 
corporation's financial statements despite its incompleteness or inaccuracy, its failure 
to give a fair and accurate presentation of the corporation's condition, or despite 
containing false or misleading statements, shall be punished with a fine ranging from 
eighty thousand pesos (P80,000.00) to five hundred thousand pesos (P500,000.00). 
When the statement or report certified is fraudulent, or had the effect of causing injury 
to the general public, the auditor or responsible officer may be punished with a fine 
ranging from one hundred thousand pesos (P100,000.00) to six hundred thousand 
pesos (P600,000.00).
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Sec. 49. Acting as Intermediaries for Graft and Corrupt Practices; Penalties.
— A corporation used for fraud, or for committing or concealing graft and corrupt 
practices as defined under pertinent statues, shall be liable for a fine ranging from one 
hundred thousand pesos (P100,000.00) to five million pesos (P5,000,000.00).
When there is a finding that any of its directors, officers, employees, agents, or 
representatives are engaged in graft and corrupt practices, the Board's failure to 
install: (a) safeguards for the transparent and lawful delivery of services; and (b) 
policies, code of ethics, and procedures against graft and corruption shall be prima 
/&c/e evidence of corporate liability under this section.
Sec. 50. Engaging Intermediaries for Graft and Corrupt Practices; Penalties.
— A corporation that appoints an intermediary who engages in graft and corrupt 
practices for the corporation's benefit or interest shall be punished with a fine ranging 
from one hundred thousand pesos (P100,000.00) to one million pesos 
(P1,000,000.00).
Sec. 51. Tolerating Graft and Corrupt Practices; Penalties. - A director, or 
officer who knowingly fails to sanction, report, or file the appropriate action with 
proper agencies, allows or tolerates graft and corrupt practices or fraudulent acts 
committed by a board's directors, officers, or employees shall be punished with a fine 
ranging from five hundred thousand pesos (P500,000.00) to one million pesos 
(P1,000,000.00).
Sec. 52. Retaliation Against Whistleblowers. — A whistleblower refers to any 
person who provides truthful information relating to the commission or possible 
commission of any offense or violation under this code. Any person who, knowingly 
and with intent to retaliate, commits acts detrimental to a whistleblower such as 
interfering with the lawful employment or livelihood of the whistleblower, shall, at the 
discretion of the court, be punished with a fine ranging from one hundred thousand
pesos (P100,000.00) to one million pesos (P1,000,000.00).
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Sec. 53. Other Violations of the Act; Separate Liability. - Violations of any of 
the other provisions of this Act or its amendments not otherwise specifically penalized 
therein shall be imprisonment of not less than six (6) years, but not more than twenty 
(20) years, and by a fine of not less than million pesos to three million pesos 
(P3,000,000.00) but not more than twice the value of the monetary instrument or 
property involved in the offense.
Sec. 54. Prescription of Offenses. - All offenses punishable under this Act shall 
prescribed in fifteen (15) years.
ARTICLE XII 
Miscellaneous Provisions
Sec. 55. Implementing Rules and Regulations. - Within ninety (90) days from 
the effectivity of this Act, the Treasurer of the Philippines, in consultation with the 
founding GFIs, shall promulgate the necessary rules and regulations for the 
implementation of this Act.
Sec. 56. Separability Clause. - If any provisions of this Act are declared invalid or 
unconstitutional, the remaining parts or provisions not affected shall remain valid.
Sec. 57. Repealing Clause. - All acts, executive orders, administrative orders, 
proclamations, rules and regulations or parts thereof inconsistent with any of the 
provisions of this Act, are hereby expressly repealed or modified accordingly.
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Section 100 of Republic Act No. 3844, as amended by Republic Act No. 7907, Section 
16 of Republic Act No. 7653, as amended by Republic Act No. 11211, Section 26 of 
Executive Order No. 81 s. 86, as amended by Republic Act No. 8523, are hereby 
expressly repealed and modified accordingly.
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Sec. 58. Effectivity. - This Act shall take effect immediately upon its publication in
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Approved,
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