Worries and dismay spread among concerned Filipinos who took to social media platforms to not only express their grievances but also urged others to withdraw their money from Land Bank and Development Bank of the Philippines (DBP). These two banks will serve as funding sources for President Bongbong Marcos’s flagship project, the Maharlika Investment Fund (MIF).

Senator Francis Escudero, who was absent during the Senate voting, emphasized the need for the seed money to be contributed by Land Bank of the Philippines and DBP to generate returns higher than the current average investment yield of 6 percent.

However, netizens like economist JC Punongbayan voiced their fears on Twitter, asserting that the proposed legislation aimed to risk the funds obtained from the mentioned banks, Bangko Sentral, taxpayers, and other sources.

Punongbayan tweeted, “And with the dire global economic environment, there is a possibility that investments could vanish into thin air. Moreover, no one will be held accountable. Are we going to accept that?!”

The tweet garnered over 7,400 likes and 2,800 comments, sparking intense discussions among skeptical and angered netizens.

Joel Cochico, a Twitter user, suggested a way to thwart the alleged Maharlika Fund Scam by urging depositors of Land Bank and DBP to close their accounts in these banks.

Justicia, another user, agreed and added that a bank run would effectively impede the economic saboteurs or money launderers behind Maharlika. However, those with government transactions cannot avoid Land Bank, as it handles all government payments.

The primary focus of criticism and concerns was directed at the two banks due to their close affiliation with the government and its agencies. Additionally, the Senate version of the bill indicated that Land Bank and DBP would contribute P50 billion and P25 billion, respectively. Consequently, the collapse of these banks in the event of the sovereign fund’s failure would directly impact millions of depositors.

Fortunately, there was a last-ditch effort to exempt GSIS, SSS, Philhealth, Pag-ibig, OWWA, and PVAO from involvement in the fund.

Renato Rianzares, another Twitter user, expressed deep apprehension, calling for the protection of banks, Land Bank, DBP, Bangko Sentral, pensions, and other institutions against a potential syndicate within the government’s inner circle. Rianzares emphasized the urgency to act now and remain vigilant for the sake of the nation’s future.

Presumably in response to the mounting backlash, National Treasurer Rosalia de Leon and the budget department appealed to the public not to withdraw their funds from the banks, assuring them that the Landbank and Development Bank of the Philippines are stable since they are state-owned institutions.

Emphasizing this stability, Rosalia de Leon stated that Landbank and DBP are “stable” since they are state-owned banks.

According to the Senate version of the bill, the Maharlika Investment Corporation would have a capital stock of P500 billion, with P50 billion sourced from Landbank and P25 billion from the Development Bank of the Philippines.

The Bangko Sentral ng Pilipinas (BSP) also plans to contribute 100 percent of its total dividends for the first two years, not exceeding the initial subscription of the national government’s capitalization at P50 billion.

Some netizens expressed their intention to withdraw their funds from Landbank, fearing that the financial institution might face insolvency if the Maharlika fund fails.

In response to the concerns, De Leon clarified during a media forum in Quezon City, “The investment that Landbank will make in Maharlika, let’s say P1.3 trillion from their investible funds, and they’re only investing P50 billion, which is less than 3 percent. This means their investment is relatively small.”

She further added, “It will not affect the prudential ratios imposed by the Bangko Sentral.”

De Leon also highlighted that the Maharlika Investment Fund could serve as a platform to attract additional funds from offshore and the international funding community, which would be directed towards the administration’s priority projects.

Addressing the concerns of potential graft and corruption, De Leon assured the public that the Maharlika Investment Fund has comprehensive safeguards and measures in place to prevent misuse of funds.

Audits conducted by the Commission on Audit and internal auditors will oversee the MIF. An external editor will also scrutinize the fund’s utilization, and an oversight committee in Congress will monitor the sovereign investment fund.

“The proposed law includes various sections that provide safeguards to protect the public funds, ensuring that they are directed toward the objectives for which the fund was established,” De Leon concluded.