From the Newsrooms: Maharlika Investment Fund still for review; Filipino supply mission hit by Chinese vessels

A rundown of key events and issues covered by newsrooms from October 16 to 22, 2023

RECENT DEVELOPMENTS have made the Maharlika Investment Fund (MIF) a bit of an embarrassment for the Marcos administration. Its announcement in 2022 was met with furious controversy. Now its start is shaken by more disturbing questions. 

Newsrooms reported the memorandum issued by Executive Secretary Lucas Bersamin on October 12 ordering the Bureau of Treasury, the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) to suspend the implementation of the fund, pending further study of the law’s implementing rules and regulations (IRR). 

Frontline Pilipinas on October 18 and Philippine Daily Inquirer, Manila Standard, Manila Bulletin and The Philippine Star on October 19 were the only ones to recall the petition filed last September in the Supreme Court by a number of former legislators to check the constitutionality of the MIF. The Court had asked respondent officials in the executive and in Congress to comment on the petition. The reports quoted Solicitor General Menardo Guevarra saying his office was prepared to submit its response to the Court. 

But the president seems intent to make his centerpiece policy operational by the end of the year. Reports picked up variations on the theme of strengthening safeguards for transparency and other positive angles for the suspension. Executive Secretary Lucas Bersamin said the president wanted to review the law’s implementing rules and regulations (IRR). Marcos himself told the media before leaving for Saudi Arabia that the government is “finding ways to make it as close to perfect and ideal as possible.” 

Most reports sidelined further discussion of the state of the two financial institutions that had made their obliged contributions to the MIF for its seed capital: fifty billion from the Land Bank and 25 billion from the DBP. Only the Inquirer on October 18 and Manila Standard and Daily Tribune on October 19 recalled that the LBP and the DBP had sought regulatory relief from the Bangko Sentral ng Pilipinas (BSP) last October 11, as their respective remittances to the MIF had affected their capacity to comply with BSP regulations.

Diwa Guiniguindo, former governor of the BSP, was briefly cited in Frontline Pilipinas and TV Patrol warning that without the regulatory relief, the LBP and DBP might be forced to cut back on lending, a significant drawback for small businesses and farmers who make up the banks’ clientele. Fitch Ratings shared this observation in an article by the Inquirer last October 20, saying the credit strength of the two banks may decline without mitigating measures against potential losses.

All of these confirm the validity of concerns expressed by economists since Marcos publicized the proposal in December 2022. Meanwhile, the media have not expanded discussions to emphasize the extent of instability that bad economic decisions can cause and the impact it will have on the public. 

It is disturbing to see how newsrooms have sat on the fence on this issue. Even with the suspension order, most reporters have held back, still highlighting the official talk in defense of the MIF. 

Newsrooms must keep close watch of the unfolding of the MIF to better understand exactly what the administration is trying to accomplish through this policy. So far, the piecemeal coverage does little to help the public understand the possible harm that can result from it. 

Collision in WPS

Primetime newscasts on October 22 reported that on the same day, the resupply mission of the Philippine Coast Guard (PCG) and the Armed Forces of the Philippines (AFP) to Ayungin Shoal was deliberately hit by Chinese vessels. In a statement, the National Task Force on the West Philippine Sea (WPS) condemned the “dangerous maneuvers” of the Chinese vessels; in attempting to block their path, one of the Chinese ships bumped the PCG vessel’s port side, imperiling the safety of the crew.

The task force reported that the resupply mission successfully reached the BRP Sierra Madre where Filipino troops are stationed. No update was issued on the condition of the crew. Meanwhile, China blamed the Philippine vessels for the collision, claiming they were trespassing and ignored multiple warnings.

As of this writing, the Department of Foreign Affairs has filed a diplomatic protest against China. President Marcos has not yet issued a statement on the incident. Marcos has typically taken time before speaking on Chinese aggression in the WPS. This recent incident however calls for a response that should stand the test of his promise not to surrender a “square inch” of territory.

More recantations in De Lima’s case

News accounts on TV, online and print reported on October 16 and 17 that two more witnesses want to recant their testimony against former Senator Leila de Lima, who remains in police custody for the last of the three drug cases filed against her. Rodolfo Magleo and Nonilo Arile, two detained former law enforcers, wrote to De Lima saying they were both bothered by their conscience. 

Reports said court granted the request of both policemen to be transferred to more secure facilities for their safety.