PHOTO: Landbank Official, INQUIRER FILES
MANILA -The planned Land Bank of the Philippines (Landbank) and Development Bank of the Philippines (DBP) merger may proceed even without a new law, according to the Governance Commission for Government Owned or Controlled Corporations (GCG).
The GCG yesterday said it has submitted to the Office of the President a report on the study it made on how the merger could progress.
The study was intended to resolve the disagreement between Finance Secretary Benjamin Diokno and DBP chair Dante Tinga, whose opposing views were raised at a meeting in Malacañang that resulted in President Marcos’ “approval” of the merger.
The DBP argued that both banks were created by law and, therefore, must be merged through an act of Congress.
The conclusions of the GCG, where the Finance Secretary sits as an ex officio member, agree with the Department of Finance.
In asserting authority over the matter, GCG chair Alex Quiroz said in a statement: “The GCG, pursuant to memorandum Circular 2015-03 (that it issued in April 2015), has the power to ascertain the manner of the merger—either de jure (or officially sanctioned) merger or de facto merger.”
https://business.inquirer.net/393847/gcg-asserts-mandate-to-evaluate-landbank-dbp-merger
It specifically cited three legal provisions that gave it the power to merge government-owned or -controlled corporations (GOCCs): Section 5(a) of Republic Act (RA) No. 10149 or the GOCC Governance Act of 2011 that created the GCG; Section 17, Article VII of the 1987 Constitution; and Section 2, Chapter 2, Book III, Administrative Code of 1987.
The GCG also cited a Supreme Court decision that affirmed the constitutionality of RA No. 10149.
The three provisions, along with the high court’s decision in “Lagman vs Executive Secretary,” empower Mr. Marcos to implement the merger of the two state-owned banks without waiting for Congress to file and pass related bills, it said.
Sought for comment, the DBP said they still have to study the latest development.
Earlier this month, Diokno had said the GCG was preparing a draft executive fiat that would make the merger happen.
“We want to ensure that the merger is seamless and will not disrupt or cause issues or concerns in their respective operations and processes,” Quiroz said in response.
Ensuring that the merger of the two state-run banks would benefit the government was within the GCG’s jurisdiction, he had said.
The GCG chief added the planned merger was expected to result in savings of about P5 billion annually for the government. INQ
https://business.inquirer.net/395226/palace-gcg-urged-to-drop-dbp-landbank-merger-plan