MANILA — Former Senate Minority Leader Franklin Drilon has urged lawmakers to consider financing the proposed Maharlika Investment Fund (MIF) by privatizing the government’s gaming agencies, particularly the Philippine Amusement and Gaming Corp. (PAGCOR) and the Philippine Charity Sweepstakes Office (PCSO).
According to Drilon, the privatization of these agencies could generate an estimated ₱300 billion in annual revenues.
Privatization to Boost Revenue and Reduce Corruption
Drilon emphasized that the government should no longer be involved in running casinos and lotteries, calling it an outdated system.
READ: Privatization of PAGCOR casinos to start in 2026
“PAGCOR should stop operating casinos, and PCSO has no business running the lotto and small-town lotteries. Privatizing the gaming industry achieves two goals: generating funds and eliminating a major source of corruption,” Drilon said.
He noted that President Ferdinand Marcos Jr. has the authority to implement this through the GOCC Governance Act, which regulates government-owned and controlled corporations.
Avoiding GOCC Funds for MIF
Drilon also warned against using funds from Bangko Sentral ng Pilipinas, Development Bank of the Philippines, and Land Bank of the Philippines for the MIF, as it could invite political interference. He pointed out that successful sovereign wealth funds worldwide are typically sourced from budget surpluses or government asset sales.
With the country’s ₱1.2 trillion debt, Drilon stressed the importance of finding alternative funding sources for the Maharlika Investment Fund.
“The key to a successful sovereign wealth fund lies in strict adherence to the rule of law,” he said.
Calls for PAGCOR and PCSO Privatization
In 2019, Senator Win Gatchalian supported PCSO’s privatization to prevent corruption, proposing that proceeds from lottery games be directly allocated to the Department of Social Welfare and Development (DSWD) for social services.
A decade earlier, San Miguel Corp. Vice-Chairman Ramon S. Ang offered to buy PAGCOR for $10 billion, but the Department of Finance dismissed the bid as undervalued.
READ: Privatization of PAGCOR casinos to start in 2026
Maharlika Investment Fund: Current Developments
President Ferdinand Marcos Jr. recently introduced the Maharlika Investment Fund at the World Economic Forum, stating that it should be tailored to the Philippines’ economic conditions.
The latest version of the MIF proposal suggests that the fund will initially be sourced from GOCC surpluses before being listed on the Philippine Stock Exchange (PSE). However, the proposal has faced strong opposition from activists, business groups, and political critics.