Philippine Congress passes controversial US$2 billion wealth fund bill
- President Ferdinand Marcos called for a swift passage of the bill, which will have two state banks initially providing a total of US$1.3 billion
- An earlier version was abandoned after critics, including business groups, warned the fund could deplete worker pensions and stoke corruption
Philippine legislators endorsed on Thursday a proposed law to create a US$2 billion sovereign wealth fund but slashed its planned initial capital following public fears of corruption.
President Ferdinand Marcos has called for a swift passage of the bill, filed by his son and a cousin, to enable the debt-laden government to earn extra funds to finance huge infrastructure projects.
The Senate must pass a counterpart bill for the measure to become law.
The version of the “Maharlika Investment Fund” passed by the House of Representatives on a second reading on Thursday will have two state banks initially providing a total of 75 billion pesos (US$1.3 billion).
Central bank profits, which the bill’s authors estimate at 35 billion pesos this year, will make up the balance.
The total is far smaller than an earlier version of the bill that envisioned a 275 billion-peso (US$5 billion) fund, mostly capitalised by two state-run pension funds.