The Governance Commission for GOCCs, the central advisory, oversight and monitoring body for government-owned or -controlled corporations, said Thursday it will submit to the Office of the President its recommendation on the proposed merger of state-run Land Bank of the Philippines and the Development Bank of the Philippines.
GCG said in a statement legal concerns on the merger were raised by DBP in a sectoral meeting attended by the stakeholders.
“GCG will have to look into the specifics of the merger as it involves two major banks that are state owned. We want to ensure that the merger is seamless and will not disrupt or cause issues or concerns in their respective operations and processes,” GCG chairman Justice Alex Quiroz said.
“It is within the jurisdiction of GCG to ensure that the merger of LBP and DBP is beneficial to the state,” he said.
Finance Secretary Benjamin Diokno said earlier the proposed merger was expected to result in savings of about P5 billion annually for the government.