MANILA -Development Bank of the Philippines (DBP) has raised the alarm over “efforts to railroad” a planned merger with Land Bank of the Philippines, citing its pending appeal lodged at the Office of the President.
In a statement on Monday, DBP management lamented statements from the Department of Finance (DOF) suggesting that the two state banks could be combined within this year, insisting that such an exercise needed a new law passed in Congress.
“We are deeply concerned about the palpable efforts to railroad the process and to create public confusion by insinuations that the unification would be completed by November,” the DBP said.
On May 5, Finance Secretary Benjamin Diokno told reporters that based on the latest timeline regarding the planned merger, Malacanang may issue within this month an executive order approving the union.
Landbank-DBP merger done deal by Nov
Also, Diokno said that by September, an operational integration plan would have been jointly crafted and approved; and by October, the Monetary Board would have approved the merger.
DBP said such statements were being made notwithstanding its pending appeal with the Office of the President on the results of the legal study conducted by the Governance Commission for Government-Owned and -Controlled Corporations (GCG). The appeal document is dated April 18, 2023.
Earlier, the GCG said the study affirmed that a merger would not need a new law passed in Congress. The GCG also said existing laws have given the President the authority to implement such a merger.
GCG: Legislation not needed for Landbank-DBP merger
“DBP reiterates GCG’s legal study only delved on the proper mode of merger. It did not discuss the propriety of merger,” the state bank said.
“In fact, based on GCG’s statements, no recommendation in favor of merger had been given. DBP maintains that the legal authority of the GCG is at best recommendatory and in no way binding on any government agency,” it added.
The bank said the DOF statement was an “utter disregard” of the growing clamor from policymakers and key stakeholders on the need to undertake transparent discussion and meticulous analysis of all issues, considering the impact of the merger especially on the livelihood and tenure of DBP’s employees. INQ
READ MORE:
DBP digs in, insists merger with Landbank needs new law
Your subscription could not be saved. Please try again.
Your subscription has been successful.
Read Next
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.
For feedback, complaints, or inquiries, contact us.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
