A party-list lawmaker is seeking a House inquiry into the multibillon-peso loans extended by the state-owned Development Bank of the Philippines (DBP) to big private corporations, saying that its funds are primarily intended for small and medium-scale industries.
In filing House Resolution No. 1646, Rep. Teodorico Haresco Jr. of Kasangga urged the appropriate committee in the House of Representatives to investigate the matter due to possible violations of the DBP’s charter.
Haresco cited reports the DBP recently approved a multibillion-peso loan to a private corporation to partly fund its capital expenditure programs for 2011 and 2012.
By doing so, he said, the DBP had violated one of its primary development thrusts, which is to provide banking services principally for the medium and long-term needs of agricultural and industrial enterprises, particularly-small and medium-scale industries.
He said the DBP’s development thrusts focus on five priority areas, namely, social services, environment, infrastructure and logistics, micro, small and medium enterprises (MSMEs), and industrial lending.
Haresco said there was a need to restructure government financial institutions, particularly the DBP, to achieve a more efficient and effective use of available resources so that its assets would serve as a guarantee fund for micro-entrepreneurs, farmers, fisher folk and others to avoid unfair competition with the private sector.
“DBP should prioritize lending to micro-enterprises and micro-entrepreneurs if it really recognizes MSMEs as a potent force in spurring development,” Haresco said.
Haresco said the Constitution provides that the goals of the national economy are a more equitable distribution of opportunities, income and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and an expanding productivity as the key to raising the quality of life for all, especially the underprivileged.
“In the country, development financial institutions play a major role in the search for a more sustainable economic growth and progress,” Haresco noted.
He said that under its new charter, the DBP is classified as a development bank and may perform all the other functions of a thrift bank.
Haresco also said the DBP as a development bank should service the medium-and long-term requirements of agriculture, small and medium scale industry, export development, and the government sector.
The DBP was thrust in the spotlight recently after one of its lawyers committed suicide following controversy involving an alleged behest loan to a prominent businessman.