Maharlika to have 6 to 11% yield...

development projects, the MIC would invest in treasury bonds, equities and government securities.

Cap on foreign funds

National Treasurer De Leon also said there should be a limit to the resources foreign entities may pour into MIF to ensure their participation in decisionmaking is restricted.

She said both the Senate and House versions of the MIF bill don’t provide for such restriction.

“We are thinking of putting a cap in terms of the limit on how much offshore investments can participate in the corporation,” De Leon said.

“There should be a cap on how much you can invest. We can put it in the IRR (implementing rules and regulations) or put it in the law already, if needed,” she said.

The rationale behind such a proposal, according to De Leon, is to keep foreign investors from becoming part of the board of directors of the MIC. This means they will have no seat or voting rights in the MIC.

In the proposed measure’s current form, the corporation is represented by the founding members including the secretary of the Department of Finance, heads of the Landbank and DBP, as well as an advisory board.

There will also be independent directors