BIZ BUZZ: DBP staff in mourning
If you go to any branch of state-owned Development Bank of the Philippines (DBP) today and see bank personnel clad in black or wearing a black armband, it’s the employees’ “silent protest” to the proposed merger of the bank with Land Bank of the Philippines (Landbank).
The DBP Employees Union led by its national president, Charles Coronejo, has declared full support to the merger resistance launched by the bank board and management. Even non-union members are encouraged to “show support solidarity and unity” with the stance of DBP management led by bank president Michael de Jesus.
The “wear black campaign” is to send the “no to merger” message, Coronejo said in an advisory dated April 25, a copy of which was obtained by Biz Buzz.
“The said silent protest will commence on Friday, 28 April 2023, and will continue every Friday henceforth until further notice,” the union president said.
DBP has about 3,600 employees who have been jittery for months because under the merger proposal, it’s estimated that 70 percent of DBP personnel would be deemed redundant. Of about 140 branches, only 22 will remain.
“It’s not a merger. This is basically Landbank taking over DBP,” De Jesus said in an earlier chat.
“We can’t keep quiet. We have to explain. Do not fix something that’s not broken, but we can strengthen it. Putting it together might even break it.”
—Doris Dumlao-Abadilla
Not a done deal?
The Governance Commission for Government-Owned or -Controlled Corporations (GCG) now says there is no decision yet green lighting the merger of Land Bank of the Philippines (Landbank) and Development Bank of the Philippines (DBP).
GCG, chaired by retired Justice Alex Quiroz, is apparently clarifying this after saying last week that the planned combination of the two state banks does not require any new law from Congress, and may be done through an act of the President.
The overseer of government-owned or -controlled corporations—itself overseen by the Office of the President—was also reacting to a call from Sen. Risa Hontiveros for an investigation in aid of legislation of the proposed Landbank-DBP union.
“We welcome all resolutions, inputs, and studies that will provide the Commission better understanding and information to determine whether it is appropriate to merge the concerned government financial institutions (GFIs),” GCG Commissioner Gideon Mortel says.
Mortel adds that any further inquiry on the proposed merger will provide better light on whatever determination GCG would have.
The lawyer added that the GCG legal study submitted to President Marcos only resolves whether the merger requires legislation. “It does not indicate just yet any decision from the [GCG] regarding the proposal for merger.”
DBP has dug in, insisting that such a merger does need a law, and described the GCG’s findings expressed in the study as “legally erroneous.”
By the reckoning of Finance Secretary Benjamin Diokno, who is the main champion of the merger and also serves as ex officio member of GCG, the creation of the Philippines’ new largest bank will happen within this year.
From one point of view, DBP might look like a prey already caught. It’s just a matter of how long the squirming goes on and when it will stop. From another view, the point of interest is how the seemingly condemned prey might get out of its predicament.
—Ronnel W. Domingo
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