Philippines’ Marcos Jnr suspends roll-out of controversial sovereign wealth fund, urges further study

Factors cited for suspending the US8.8 billion fund were the reasons critics cited – that it had no ‘transparency and accountability’ safeguards

Marcos, in signing the bill creating the fund, touted it as a key plank of his economic goals to modernise infrastructure and accelerate the country’s growth

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Philippine President Ferdinand Marcos Jnr has decided to suspend the implementation of a controversial sovereign wealth fund. Photo: AP

Published: 5:45pm, 18 Oct 2023Updated: 7:39pm, 18 Oct 2023

Philippine President Ferdinand Marcos Jnr has suspended the implementation of a controversial sovereign wealth fund that he fought to bring to fruition, citing the need to make it foolproof.

His executive secretary said in an October 12 memo there was a need to study the fund’s implementing rules and regulation, which were already in effect, to ensure that safeguards were in place for “transparency and accountability.”

The factors cited for the suspension were the very same reasons that critics of the fund have cited when they opposed it, which were met by repeated assurances from its backers, including Marcos Jnr, the fund would be managed with prudence.

It was not clear from the memo for how long the rules would remain suspended.

Opposition lawmaker France Castro said on Wednesday the suspension of the fund’s implementation showed the measure was “rushed and flawed in so many levels.”