MANILA -- The revised implementing rules and regulations of the Maharlika Investment Fund (MIF) gives the Philippine President the power to accept or reject recommended appointees to the sovereign wealth fund’s board, according to a copy of the document released on Saturday.

Under the revised MIF IRR, "the President may require the Advisory Body to submit additional names of nominees," should he fail to find a suitable appointee from the initial shortlist submitted by the Advisory Board.

"The Advisory Body shall select suitable and qualified candidates for vacancies in the PCEO, and Regular and Independent Director seats from the public and private sectors," the new IRR read.

"Only those nominations and applications that meet all the qualifications and do not have any of the disqualifications will be transmitted to the Advisory Body for further evaluation and shortlisting," it read.

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The Advisory Board is composed of the national treasurer, the socioeconomic planning secretary and the budget secretary.

In a statement, Malacañang said revised IRR "strengthens [the] independence of the Board of Directors of the Maharlika Investment Corporation (MIC)."

The new IRR also relaxed qualifications for members of the board of directors as it scrapped Section 29 which requires members of the board to have:

• Master’s degree
• 10 years of experience in finance, investments or economics
• strong track record
• ethical standards

President Ferdinand Marcos Jr. earlier recalled the initial IRR for the Maharlika Fund as the chief executive wanted to "ensure that the purpose of the fund will be realized for the country's development with safeguards in place for transparency and accountability."

Malacañang has yet to respond to queries as to which part of the revised IRR made the MIC more independent when the President was given the power to reject recommendations from the Advisory Board.

Meantime, the additional option given to the President is not much of a concern for investors as business leaders will focus more on whether or not the MIF will be more profitable than other existing investment funds, said Michael Ricafort, RCBC’s chief economist.

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"Dapat siguraduhin na yung kikitain is much higher than noong kaniya kaniya pa sila in view of the regulations," he said in a news forum in Quezon City.

"Dapat may track record sila para kikita talaga ng todo," he said.

Under the law, the MIC will be run by a nine-member board of directors, with the finance secretary serving as its chair. Other members of the board are the president and chief executive officer of the MIC, the president and chief executive officer of Land Bank of the Philippines, the president and CEO of the Development Bank of the Philippines, while the private sector will be represented by two regular directors and three independent directors.

The Maharlika fund, which critics have said is risky, could lead to corruption and is not the best use of limited government funds, is subject to a petition at the Supreme Court questioning its legality.

Petitioners Senate Minority Leader Aquilino "Koko" Pimentel III, Bayan Muna Chairman Neri Colmenares, and former Bayan Muna Representatives Carlos Zarate and Ferdinand Gaite say the law did not go through the proper legislative process.

• P75 billion investment in Maharlika still with the Treasury

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