THE establishment of the Maharlika Investment Fund (MIF) will provide the government with a long-term revenue stream that will help fund priority projects, the Finance department said on Wednesday.

The country’s economic managers said they would work to ensure that the sovereign wealth fund generates returns that result in equitable and long-term economic growth.

“The economic team is resolute in its commitment to ensure that the entity created will be able to generate returns that will redound to inclusive and sustainable economic growth,” Finance Secretary Benjamin Diokno said.

He added that Congress’ prompt adoption of the MIF Act before President Ferdinand Marcos Jr.’s second State of the Nation Address demonstrated a commitment to seeing the administration’s goals achieve completion.

Approval of the MIF came with some controversy over concerns regarding its funding

and management. Senators who backed the bill have claimed that revisions made to the original proposal established adequate safeguards.

The Senate version, approved early in the morning on Wednesday, was adopted by the House of Representatives later that day.

Notably, the final version of the bill bars government agencies and state-owned firms such as the Social Security System, Government Service Insurance System, Philippine Health Insurance Corp. and the Home Development Mutual Fund from investing in the MIF.

As for credibility, the proposed law calls for the establishment of audit and risk management committees, congressional oversight and regular Commission on Audit reviews of the fund’s books and finances.

Businessmen also welcomed approval of the bill, with Philippine Chamber of Commerce and Industry President George Barcelon saying it would generate funding for priority areas such as education and health.

“I’m glad that there were safeguards that were put in. That is good,” he told The Manila Times.

But the head of the Federation of Filipino-Chinese Chamber of Commerce and Industry Inc. (FFCCCII) expressed concerns that mismanagement could still occur.

“The objective, which is to generate funds to help the poor, is wise,” FFCCCII President Cecilio Pedro told The Manila Times in a separate interview.

“How to use the funds properly is the key,” he added.

Today’s Finex column will be carried online due to space constraints.