This is the #NeverForget Diary, a weekly summary of what’s happening in the Philippines under Marcos II. In a time of mangled histories and fragile memories, it’s crucial never to forget. (Note: this post may be clipped in your email inbox. Photo above from the House of Representatives YouTube Channel.)
On December 15, the House of Representatives passed with lightning speed (in just 18 days) the bill that aims to establish the Maharlika Investment Fund (a sovereign wealth fund that really isn’t).
This, after the president certified the bill as urgent on the same day, upon the urging of House Speaker Martin Romualdez (the president’s cousin) and many others, including Finance Secretary Benjamin Diokno.
My full take on this unsettling development:
The bill underwent many changes amid strong public backlash, including new provisions that says that 25% of net profits will go to the poor (they haggled over the percentage):
Also this week, Marcos Jr. admitted that Maharlika was his brainchild.
However, this competes with other claims that (1) this was the brainchild of 6 lawmakers in the House of Representatives (3 of whom are his relatives); (2) this was the brainchild of the economic managers, said Rep. Stella Quimbo, one of the original proponents; (3) this was the brainchild of Finance Secretary Diokno when he was in the BSP.
So whose brainchild is it anyway?
Presidential son Sandro Marcos himself said Maharlika “did not come from [his dad].” Who’s lying?
En route to Brussels for the ASEAN-EU Summit, Marcos Jr. said Maharlika will benefit Filipinos “for sure.”
Included in the Philippine contingent was former president Rep. Gloria Arroyo.
Digression: former PCGG commissioner Ruben Carranza spotted a contradiction in the president’s trip to Brussels.
Back to Maharlika, presidential son and lawmaker Sandro Marcos claimed that the bill was not railroaded because it went through the usual process. Huh?
The GUIDE bill, which aims to give aid to small businesses, was passed by the House on December 15 as well. By contrast to Maharlika, GUIDE—supposedly an emergency pandemic measure—took more than 2 years in the legislative mill.
Speaking of Sandro, in his desperate attempt to defend Maharlika, he said that Indonesia’s sovereign wealth fund—notably not built using surplus funds—already earned $23 billion in its first year of operation. This is a flat lie.
In the end, the House voted thus: 279-6-0.
A vast majority of lawmakers also decided to co-author the bill. So from the original 6 proponents, the total co-authors numbered 275 on the day of the final vote. The House proves a rubber stamp yet again.
This is not to say opposition was totally absent: 6 lawmakers defied the supermajority.
For his part, Rep. Edcel Lagman interpellated Maharlika’s proponents for 2 hours.
Oddly enough, presidential legal adviser Juan Ponce Enrile, too, has doubts about the bill.
Lawmakers twisted logic to push for the bill.
Rep. Tieng misled the public by conjuring a supposed 8% return on Maharlika investments, based on the returns of other sovereign wealth funds. What?
Apparently, Maharlika will benefit from 100% of the Bangko Sentral ng Pilipinas’ net profits for the first two years. This, on the assurance of BSP that their balance sheet is strong enough. Really?
Tweets reminding us of how Marcos Sr. bankrupted the Central Bank during Martial Law.
Some lawmakers are eyeing the Malampaya gas reserves as a source of funds for Maharlika—just when Malampaya is projected to run out by 2027, or in just 4 years.
A useful thread about Malampaya and how its proceeds were misused (it partly went to in the infamous Fertilizer Fund Scam during the Arroyo administration):
Funnily enough, there are actual scams using the name Maharlika.
Nice recap of the infirmities of Maharlika, c/o journalist Ed Lingao:
The closing spiel of Drag Den Philippines tackles the joke that is Philippine politics:
This meme captures the lightning speed by which Maharlika hurdled the House:
COMPLICITY
Perhaps the saddest aspect of the Maharlika saga is that a number of well-respected and seasoned economists are backing it up. This rather confirms initial worries that PhD technocrats will “deodorize” the second Marcos administration.
On December 15, Finance Secretary Ben Diokno wrote the president to certify the Maharlika Fund bill as urgent, claiming that the Fund will “surely” be a “catalyst in changing our country’s economic landscape” and “aid in propelling the Philippines towards reaching its maximum potential.” What a hard sell!
Here’s his memo to the president:
Budget Secretary Amenah Pangandaman, a protege of Diokno and alumna of the UP School of Economics, said “we don’t have to be so scared” of Maharlika.
To be sure, there was some resistance from the economic managers. For instance, NEDA Secretary Arsenio Balisacan warned against touching the BSP’s funds for Maharlika.
But he eventually leaned into it:
BSP Governor Felipe Medalla had initial doubts, but leaned into it as well.
This contrasts with the stance of the vast majority of economists outside of government. National Scientist Raul V. Fabella gave this interview re Maharlika:
When asked by Rep. Lagman about Fabella’s opposition, Rep. Joey Salceda said “it doesn't take away power of Congress to determine destiny of this nation.” What?
Salceda also misled the public by by saying economic growth today his “higher” (and thus a “sovereign wealth fund” is justifiable now). In fact, growth it’s still inflated with base effects.
Meanwhile, former heads of NEDA also spoke out against Maharlika, including Winnie Monsod, Ciel Habito, Dante Canlas, and Ernesto Pernia:
Many economists (including myself) signed a statement penned by Men Sta. Ana of the Action for Economic Reforms. Excerpt:
This muddled, inconsistent, and redundant bill is only setting the [MIF] up for failure and will only enable cronyism, rent seeking, and corruption.
Economist Rico Villanueva of UPLB gave this interview about Maharlika on Mike Navallo’s ANC show, Rundown. He points out that many red flags remain in the bill.
NOCHE BUENA WOES, CHRISTMAS RUSH
Government is prioritizing the Maharlika Investment Fund, but inflation demands greater attention.
The Department of Trade and Industry insists that noche buena can be squeezed from P500.
This Christmas, inflation keeps families apart:
High inflation is affecting the world, too, and it could have implications for the Philippines. Vietnam saw a massive layoff owing to high US inflation and the consequent drop in consumer demand.
Apart from inflation, Filipinos are bearing the brunt of Christmas traffic—extraordinarily bad this year.
Booking anything is a nightmare:
Commuting has become a lot worse in many places:
Speaking of traffic woes, arriving at our airports a national nightmare and embarrassment.
Even the new Skyway extension—supposed to abate traffic—is riddled with congestion. But that’s not surprising given that it’s part of the Metro’s car-centric infrastructure:
People are reminded of lofty promises made by politicians before:
Amid economic hardships, the resilience narrative is being used again.
MISCELLANY
Marcos Jr. signed into law the P5.2-trillion General Appropriations Act for 2023. (This should be the greater news item instead of Maharlika, if you think of it.)
Some lawmakers may be pushing for charter change:
The president wishes that OFWs return to the country. But whose regime prompted the mass exodus of OFWs in the first place?
The gov’t launched its new tourism campaign, and it’s called BBMG: “Bisita, Be My Guest.” Weird for 3 reasons: first, it translates to “Guest, Be My Guest”; second, it uses the initials of the president, BBM, rather forcedly; third, it aims to entice migrant workers to entice foreigners to come over.
The Department of Tourism denies BBMG has anything to do with the president’s initials:
The well-intentioned SIM registration law, recently signed by Marcos Jr., may prove to be anti-poor.
The new National ID is of poor quality, apparently.
The new BIR chief said they’re going to study the unpaid estate taxes of the Marcoses. But in fact they need only implement the decision of the Supreme Court back in 1997, which became final and executory in 1999.
New whistleblowers claim that some inmates who died due to COVID were actually killed.
Senator Bato dela Rosa, the former police chief who first implemented Duterte’s war on drugs, said that drug syndicates are back “with a vengeance.” Did they even leave?
Vice President Sara Duterte-Carpio wore a weird outfit in an event recently. Thoroughly meme-worthy. But is it appropriate for her office?
Joma Sison, 83, founder of the Communist Party of the Philippines, died on December 17.
#HOLDTHELINE
ANC’s Karen Davila interviews Rappler CEO and Nobel Peace Prize laureate Maria Ressa:
Rappler editors’ recap of the year that was for press freedom in the country:
GRAPHS OF NOTE
Central banks worldwide continue to raise policy rates to combat inflation.
The US raised its rate again:
The BSP did as well on December 15 (btw BSP Governor Medalla has a new Twitter account):
Context matters:
Here’s how interest rates affect ordinary people (US context):
Inflation seems to be abating in the US, which is important since it might temper the need for interest rate hikes from the Fed (and other central banks across the world):
How inflation is making the English breakfast more expensive:
Rail systems in the US vs Europe:
Air industry deregulation and airfares:
Solar and wind are catching up.
Gun violence and children’s deaths in the US:
Who Americans spend their time with throughout their lives:
Gift-giving now an inferior good in the US (meaning it declines with income)?
CHATGPT
It’s not foolproof, including on economic matters:
The future of coding?
RECOMMENDATIONS
Recommended explainer video: “Black Hole Star” by Kurzgesagt.
Recommended op-ed: “I went to space and discovered an enormous lie.”
Recommended book: A Journey of Struggle & Hope by Jovito Salonga.
Recommended movie: Triangle of Sadness. Filipino actress Dolly de Leon shines here.
de Leon talks about the travails of being an actor in the Philippines.
Recommended movie: Avatar: The Way of Water. ⭐️⭐️⭐️⭐️⭐️ A must-watch. This spoke to me as an amateur freediver myself.
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