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Albay Rep. Lagman: GOCCs dividends must not be used to fund Maharlika Investment

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Albay Rep. Edcel Lagman has welcomed the pronouncement of President Ferdinand “Bongbong” Marcos, Jr. that GOCC dividends should not be utilized as seed money for funding the Maharlika Investment Fund (MIF) .

Lagman noted that these dividends are traditionally and legally used as additional revenues to finance the GAA, more particularly basic socio-economic services on health, education, food security, employment generation, and infrastructure development.

“GOCC dividends must not be securitized or sequestered to fund the MIF because they are used for budgetary support to augment the sources of financing the GAA. They must not be parked in long-term investments,” the opposition solon said.

“Moreover, under the Dividends Law of 1993 (RA 7656), GOCCs are mandated to remit to the national government at least 50% of their annual net earnings. Such remittances are used for budgetary support in the enactment of the national budget,” he added.

The Bicolano solon also said that with the President’s statement, contributions from the LandBank of the Philippines and the Development Bank of the Philippines, both GOCCs, must also be removed as funding source.

“Additionally, sovereign wealth funds must be effectively owned and controlled by the Government because they represent the State’s wealth. They must not be the subject of Initial Public Offering (IPO) which could lead to private control. Government ownership cannot be limited to less than 50%,” he said.

“Approve now with alacrity and reengineer later” are the indelible earmarks of hasty and errant legislation which afflict the MIF.

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