THE SENATOR WHO SPONSORED THE MAHARLIKA FUND NOW WANTS TO INVESTIGATE ITS FIRST BIG BET

Senator Mark Villar filed Senate Resolution No. 334 on Monday calling for an inquiry into the investment and operational activities of the Maharlika Investment Corporation.

Villar co-authored the Maharlika Investment Fund bill in the Senate, filing Senate Bill No. 1670 which was later consolidated with Sen. Raffy Tulfo's SB 1814 into SB 2020. He then served as the bill's Senate sponsor, defending and shepherding it through deliberations until the upper chamber passed it 19-1-1 on May 31, 2023. The original proposal came from the House, filed by Speaker Martin Romualdez and Sandro Marcos.

The senator who led the fund's passage through the Senate is now questioning how it is spending public money.

The target of the inquiry is MIC's acquisition of a minority stake in port operator Asian Terminals Inc., a deal that could eventually total P8 billion in public funds.

THE DEAL

In December 2025, MIC announced plans to acquire up to 11.2 percent of ATI at P36 per share. The purchase was timed to coincide with ATI's voluntary delisting from the Philippine Stock Exchange, which created a tender offer window for minority shareholders to sell.

By the time the tender offer closed on March 3, 2026, MIC had been allocated 101,189,675 shares. ATI itself bought back another 76,422,803 shares. Combined with existing private holdings, ATI shareholders now control 99.29 percent of the company's outstanding stock, clearing the 95 percent threshold required for voluntary delisting.

ATI is scheduled to exit the PSE on April 3.

At P36 per share, MIC's current allocation comes to roughly P3.64 billion. But the total potential investment was announced at up to P8 billion based on ATI's full outstanding share count. MIC has described the transaction as a secondary market purchase, meaning the proceeds went to selling shareholders, not to ATI's operations.

WHO CONTROLS ATI

ATI is led by businessman Eusebio Tanco and is partly owned by Dubai-based global port operator DP World. The company operates the South Harbor terminal in Manila and several other port facilities across the country.

MIC President and CEO Rafael Jose "Joel" Consing Jr. was elected to ATI's board of directors in February 2026, with the appointment taking effect upon completion of MIC's stake acquisition.

So the Philippine sovereign wealth fund is now a minority investor in a company going private, run by a tycoon, with a Dubai-based co-owner, and with a board seat but no controlling stake.

VILLAR'S CONCERN

In his resolution, Villar said the investment "raised questions as to whether these transactions truly safeguard the public interest."

His specific criticism centers on structure. By acquiring a minority stake in a company that is delisting and going private, public funds effectively benefit existing private shareholders who are cashing out. MIC gets a seat at the table but no meaningful control or influence over ATI's operations.

"While the MIC must be given certain leeway to execute its investment strategies, the State must not shirk away from its duty to ensure that public funds are being managed to redound to the public benefit in a transparent and efficient manner," Villar said.

The significance of the criticism is amplified by who is making it. Villar was the Senate's lead proponent of the MIF bill. For the senator who co-authored and sponsored the legislation to publicly question the fund's first major deployment of capital is not routine oversight.

MIC'S RESPONSE

Consing responded the same day, telling GMA News Online that MIC "respects and welcomes the Senate's exercise of its oversight functions."

"As a cornerstone of the country's economic strategy, the MIC is built on the pillars of transparency, accountability, and rigorous governance," Consing said. "We view this inquiry as a constructive opportunity to share our progress and demonstrate how every investment activity is strictly aligned with our mandate to safeguard public interest and drive long-term national growth."

Consing added that MIC is "fully committed to cooperating with legislators" to ensure the fund "continues to serve the best interests of the Filipino people."

THE FUND'S LEGAL FRAMEWORK

Republic Act No. 11954, signed by President Ferdinand Marcos Jr. on July 18, 2023, established the Maharlika Investment Fund and created MIC as its managing body. The law grants MIC an authorized capital stock of P500 billion, with P375 billion in common shares available for subscription by the national government, government agencies, government-owned and controlled corporations, and government financial institutions.

The law requires MIC to maintain a diversified portfolio and mandates oversight mechanisms including a Risk Management Committee, an Audit Committee, internal and external auditors, a Joint Congressional Oversight Committee, and examination by the Commission on Audit.

The ATI stake represents MIC's first large-scale investment deployment. Whether it aligns with the fund's mandate to "catalyze economic development" and "optimize the use of government financial assets" is precisely what Villar's resolution asks the Senate to determine.

No hearing date has been set.