MANILA -Development Bank of the Philippines is digging in, insisting that a merger with Land Bank of the Philippines must be done through a new law passed in Congress rather than at the behest of the President and the Governance Commission for Government-Owned or -Controlled Corporations (GCG).
DBP said in a statement it has filed an appeal with the Office of the President questioning GCG’s legal study for being legally erroneous, among other grounds.
The state bank was reacting to a statement of GCG, which is supervised by the OP, made on April 18.
GCG said it had submitted to the OP a study on the planned merger, with the conclusion that this could be done without the President waiting for Congress to file a bill and pass a law that would mandate the union.
GCG green-lights Landbank-DBP merger
“DBP stands firm on its position that unification of the two financial institutions requires Congressional action,” DBP said.
“We believe that GCG does not have the authority to decide on or to approve a merger of GOCCs as its powers, as defined in Republic Act No. 10149, are limited to evaluation of performance, determination of relevance of GOCCs, and implementation of mergers,” it added.
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