MANILA — President Ferdinand Marcos Jr. has issued an order to suspend the implementation rules and regulations (IRR) for the contentious Maharlika fund, as confirmed by the President and CEO of the Development Bank of the Philippines (DBP), Michael de Jesus.

De Jesus disclosed on Wednesday that a memorandum from the Office of the Executive Secretary instructed the Treasurer to halt the implementation of the IRR pending further examination.

This directive, he mentioned, was received by them “two days ago” and has been independently corroborated by the Office of the Executive Secretary.

According to the statement, Marcos suspended the IRR “to conduct a thorough evaluation to ensure that the fund’s purpose aligns with the country’s development objectives, all while maintaining transparency and accountability measures.”

When questioned about potential shortcomings in the IRR that may have prompted this suspension, De Jesus responded, “No specific issues were cited, only the need for further study.”

To initiate the operations of the Maharlika fund, the DBP and the Land Bank of the Philippines had previously transferred ₱25 billion and ₱50 billion, respectively, to the Bureau of the Treasury.

The IRR for the investment fund was initially issued in late August and was slated to go into effect on September 12, as disclosed by Finance Secretary Benjamin Diokno.

In July, Marcos signed the bill into law, just seven months after it was initially proposed in the lower chamber. Despite criticisms from economists, Marcos defended the Maharlika fund, asserting its necessity for pursuing infrastructure and structural development without incurring additional loans.

Diokno has yet to release a statement regarding this recent development.

Calls for Scrapping the Maharlika Fund Rather Than Suspension

House Deputy Minority Leader and ACT Teachers party-list Rep. France Castro has called on the President to completely abolish the Maharlika fund, arguing that the suspension only underscores its hasty and flawed nature.

Castro also noted that the suspension came after the DBP and LandBank sought regulatory relief from the central bank due to their capital infusion into the fund.

Senate Minority Leader Koko Pimentel welcomed this “very positive development” in a statement. He emphasized that the law has significant flaws and that the concept was not adequately studied from the outset. Thus, the unpreparedness for implementation is understandable, he remarked.

The question of whether this will affect the petition filed against the Maharlika fund at the Supreme Court remains uncertain.

Solicitor General Menardo Guevarra suggested that it would depend on the petitioners’ decision to withdraw their appeal to declare the Maharlika Investment Fund unconstitutional.

“But if they don’t, and the SC does not suspend the proceedings either, the OSG will be prepared to submit its comment on the validity of the MIF law,” he stated.

In September, Pimentel and former Bayan Muna party-list Representatives Neri Colmenares, Carlos Zarate, and Ferdinand Gaite brought their legal challenge against the fund to the Supreme Court.

(Amado Inigo/mnm)