THE Governance Commission for GOCCs (GCG) said that the merger of the Land Bank of the Philippines (LANDBANK) and the Development Bank of the Philippines (DBP) does not require legislative intervention.
The GCG, which oversees government-owned and -controlled corporations (GOCCs), said it conducted a study on the issues raised by the merger, and found that the banks can be combined even though they both received their charters from Congress.
“The study aims to resolve the legal issues raised by the DBP Chairman and the Secretary of Finance in a sectoral meeting held at the Office of the President,” the GCG said in a statement on Monday.
In March, President Ferdinand R. Marcos, Jr. gave the go signal for the merger of the state-run banks. The merger is expected to be completed by the end of the year.
The GCG said that concerns were raised by the DBP that “both banks were statutorily created and must therefore be merged through legislation.”
“In order to resolve the issue, GCG sought answers through the provisions of statutes and applicable jurisprudence on the matter,” GCG Chairman Alex L. Quiroz said.
The study concluded that the President can go ahead with a merger “without waiting for Congress to file and pass related bills.”
It also found that the GCG has adequate authority to merge GOCCs.
“The GCG has the power to ascertain the manner of the merger — either de jure merger or de facto merger,” Mr. Quiroz added. — Luisa Maria Jacinta C. Jocson