State-run Development Bank of the Philippines said it stands firm on its position that the proposed merger with Land Bank of the Philippines requires Congressional action, contrary to the statement issued by the Governance Commission on GOCCs.
“We believe that GCG does not have the authority to decide on or to approve a merger of GOCCs as its powers, as defined in Republic Act No. 10149, are limited to evaluation of performance, determination of relevance of GOCCs and implementation of mergers,” DBP said in a statement.
DBP filed an appeal with the Office of the President questioning GCG’s legal study for being legally erroneous, among other grounds.
DBP also contends that none of the justifications invoked by the Department of Finance meets the exclusive standards prescribed by the GCG in justifying a merger. These include relevance and consistency with the national development policy of the State; overlapping or duplicating functions with another GOCC; non-achievement of desired objectives as well as non-generation of “level of social, physical and economic returns vis-à-vis resource inputs”; dormancy or inoperability; GOCC activity can be best performed by the private sector; and functions, purpose or nature of operations of any group of GOCCs necessitates consolidation under a holding company.
