DOF submits draft EO on Landbank-DBP merger

MANILA, Philippines — The Department of Finance (DOF) has submitted a draft executive order (EO) on the merger of the Land Bank of the Philippines and the Development Bank of the Philippines (DBP) for President Marcos to consider.

In a briefing, DOF Secretary Benjamin Diokno said he has forwarded a draft EO on the proposed merger of the two government banks to Malacanang last Friday.

This comes after the Palace sought an update regarding the progress of the merger.

“Hopefully, that will be signed before the end of May,” Diokno said.

Malacanang has yet to confirm the submission. The Governance Commission on GOCCs (GCG) also has yet to comment on the development.

Diokno explained that the draft sent by the DOF contained revisions from the one earlier crafted by the GCG.

But the GCG earlier said it “has not made its final determination insofar as the formal merger of DBP and Landbank is concerned.”

It should be noted, however, that government agencies can actually submit draft EOs on certain matters for the President’s consideration.

“Longer uncertainty is not good. We cannot have consultations forever. We have to come up with a decision,” Diokno said.

In a separate statement over the weekend, the DBP welcomed the “position” of GCG which has yet to formally decide on the matter.

The DBP insists that such poses no detriment to its pending appeal with the Office of the President concerning GCG’s legal study on whether congressional action is needed to approve the proposed merger.

“We believe that GCG’s statement is a tangible substantiation of DBP’s assertion that the merger is not yet final and directly refutes the public pronouncement of the DOF, which boldly claimed that GCG had approved the unification of the two financial institutions,” DBP said.

The bank reiterated that proper and legal process should be done to protect the interests and welfare of its clients and stakeholders.