Cagayan de Oro Rep. Rufus Rodriguez on Tuesday urged the House of Representatives to investigate the proposed merger of state-owned Land Bank of the Philippines (Land Bank) and Development Bank of the Philippines (DBP).
“Let us look into the legal basis of this proposal. It is my opinion that the merger cannot take place without Congress passing an enabling bill,” Rodriguez said
He said the two banks were created by two separate laws, which have to be amended or repealed by another law that would provide for the fusion of the two banks, together with the mandate, objectives, organization, and relevant details governing the operation of the emerging entity.
He said Land Bank and DBP had been created primarily to support the agriculture sector and small and medium enterprises.
In particular, Land Bank was organized to help millions of farmers and beneficiaries of the government’s agrarian reform programs, he added.
“I would like to find out if the two banks have been true to their mandates, how much they have lent to farmers and agrarian reform beneficiaries, and small and medium businesses, and how much funds they have made available to other borrowers, including large corporations,” Rodriguez stressed.
He pointed out that such information could be gathered from Land Bank and DBP officials and from beneficiaries during his proposed investigation.
He said he would also like to know how much Land Bank has paid to landowners and payments still to be made, if any.
He said he is also interested in listening to those opposed to the proposed merger.
There are reports that DBP employees are objecting to the proposal.
“I am willing to support this proposal, if it could be shown that it would benefit our farmers and agrarian reform beneficiaries, and small businesses and our people in general, if it would help the banking sector. But we have to do it the proper, legal way,” the Mindanao lawmaker said.