Latest news with #Consing
GMA Network
29-05-2025
- Business
- GMA Network
Maharlika Fund chief Consing submits courtesy resignation
The top honcho of the country's first and only sovereign wealth fund, the Maharlika Investment Corporation (MIC), on Thursday confirmed he has tendered his courtesy resignation, as the Marcos administration's ongoing executive overhaul was also extended to heads of state-run firms. 'We at the Maharlika Investment Corporation (MIC) fully support President Ferdinand R. Marcos Jr.'s directive for courtesy resignations among GOCC (government-owned and -controlled corporations) leaders. We view this as an important and standard measure to uphold accountability and further strengthen public service,' MIC president and CEO Rafael Consing said in a statement. 'In line with this, I have submitted my unqualified courtesy resignation,' Consing said. This came after the Governance Commission for GOCCs (GCG) directed state-run firms' non ex-officio chairpersons, chief executive officers (CEOs), and all appointive directors/trustees/members of their respective GOCCs' governing boards to immediately submit their courtesy resignations to the President through the Office of the Executive Secretary. 'The entire MIC Board of Directors also promptly complied, submitting their courtesy resignations immediately upon receiving the relevant memorandum from the Governance Commission for GOCCs (GCG),' Consing said. 'We will all continue to diligently perform our respective duties and responsibilities until advised otherwise,' he added. The state-run firm's Board of Directors include GOCC-representatives Land Bank of the Philippines president Lynette Ortiz and Development Bank of the Philippines president Michael de Jesus as directors; regular director Vicky Castillo Tan; and independent directors Andrew Jerome Gan, German Lichauco II, and Roman Felipe Reyes. While top executives of GOCCs were ordered to resign, the GCG said that until any action is taken by the Office of the President on their courtesy resignations, 'they shall continue to report for work and perform their usual duties and functions…' The MIC was created through Republic Act No. 11954 or the Maharlika Investment Fund (MIF) Act of 2023, signed by Marcos in July 2023, with the aim to tap state assets for investment ventures to generate additional public funds. The MIC manages the MIF—a pool of funds initially sourced from state-run financial institutions that will be invested in foreign currencies, fixed-income instruments, domestic and foreign corporate bonds, joint ventures, mergers and acquisitions, real estate, and high-impact infrastructure projects. Under the law, the MIC has an authorized capital stock of P500 billion, P375 billion of which shall have corresponding common shares available for subscription by the national government, its agencies or instrumentalities, government-owned and controlled corporations or GFIs, and government financial institutions. Its initial capitalization is sourced from the national government and the country's two largest state-run banks. The Landbank transferred P50 billion and the DBP P25 billion to the Maharlika Fund. The national government will contribute P50 billion from the following sources: Bangko Sentral ng Pilipinas' total declared dividends; National government's share from the income of PAGCOR Properties, real and personal identified by the DOF-Privatization and Management Office; Other sources such as royalties and/or special assessments In January, MIC made its first investment activity by acquiring a 20% stake in Synergy Grid and Development Philippines Inc. (SGP) —giving it two board seats in the company and another two in the National Grid Corporation of the Philippines (NGCP). The NGCP is 60% owned by SGP, while State Grid Corporation of China has 40%. MIC had expressed intent in acquiring shares of the State Grid Corporation of China in the Philippines' power grid. Last week, Marcos directed the courtesy resignations of Cabinet secretaries to "recalibrate" his administration after the 2025 national and local elections. The President had lamented that results of the May 2025 midterm polls showed that the people are "tired of politics and they are disappointed with the government." —AOL, GMA Integrated News
Reuters
28-01-2025
- Business
- Reuters
Philippines' wealth fund eyes Chinese firm's shares in grid operator
Summary Companies NGCP has 25-year concession as sole grid operator Mistrust in Philippines over Chinese firms as diplomatic ties sour Fund seeks some influence, not control, president says MANILA, Jan 28 (Reuters) - The Philippines' sovereign wealth fund would be interested in buying a Chinese state firm's stake in the Southeast Asian country's power transmission operator, its president said on Tuesday, as the government seeks to boost its oversight of the national power grid. The wealth fund, Maharlika Investment Corp, announced on Monday it would buy a 20% stake in the National Grid Corp of the Philippines, or NGCP, which in 2007 won a 25-year concession to be the Philippines' sole power transmission operator. Maharlika president and chief executive officer Rafael Consing Jr said the fund would also be interested in shares held by China State Grid Corp, but noted that taking control of NGCP was not the fund's motivation when it decided to buy into it. "The objective was not to take control, but rather just to be able to achieve some level of influence, and you achieve that by way of your board seats," Consing told a press conference. Some Philippine legislators have in recent years warned about potential security risks from a Chinese state firm's involvement in the power grid, as well as Chinese-backed players in the telecoms market. "If it becomes available, I think so yes," Consing said when asked about the Chinese stake, adding no approach had been made to the firm. China's State Grid Corp could not immediately be reached for comment. China's State Grid has a 40% stake in NGCP, and the remaining 60% is effectively controlled by Synergy Grid & Development Phils Inc. (SGP) ( opens new tab through a common corporate structure of the latter's two largest Filipino shareholders, tycoons Henry Sy Jr. and Roberto Coyiuto Jr. Maharlika's interest comes at a time of heated maritime rivalry and deepening mistrust of China, which has opposed some recent moves by the Philippines to boost its defence collaboration with ally the United States, including use of its Typhon missile system. NGCP is also currently the subject of a congressional probe into its compliance with franchise obligations and its ownership. With a 20% stake, Maharlika will be able to subscribe to preferred shares offered by SGP, which would give the wealth fund two seats each at NGCP and SGP. Consing said Maharlika's presence in NGCP would also allow the government to monitor external threats "if such threats indeed arise". Energy Secretary Raphael Lotilla at the same press conference said the fund's involvement in the grid would pave the way to more efficient power transmission, potentially lowering power costs. Maharlika will acquire the preferred shares for 19.7 billion pesos ($336.64 million), which will provide the fund with an annual 6.5% dividend yield for the first three years, Consing said. ($1 = 58.5200 Philippine pesos)
