Why the rush? Hontiveros seeks Senate probe on DBP-Landbank merger

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Puzzled by Malacanang’s supposed rush, opposition Senator Risa Hontiveros asked the Senate to look into the planned merger of the Land Bank of the Philippines with the Development Bank of the Philippines. | MAgerINQ

In the resolution, Hontiveros also cited the coconut farmers’ fears that the impending merger would make it “even more difficult for the beneficiaries to access support from the fund and will further dilute the mandate of the LBP to assist Coco Levy beneficiaries.”

It likewise noted the “legal objections” raised against the validity of such a merger with then Finance Secretary Carlos Dominguez III asserting that since the two banks were set up through legislation, only a law could legalize the merger. “There is a need for the government to proceed cautiously and prudently vis-à-vis the contemplated merger, as well as clarify all legal issues involved, for the purpose of ensuring that this does not prejudice the country’s economy, the stability of the financial system, and the welfare of affected employees and depositors,” the resolution then said.

In the statement, Hontiveros urged Malacañang “to not rush the proposed merger and instead devote more time to analyze it extensively, consult with key stakeholders, and resolve not just the legal issues, but all the operational and personal issues voiced out by the employees and the small coconut farmers.”before the end of the year.

“Hindi ko maintindihan kung bakit minamadali. Sa paglalakad na ito ng matulin, ang mga empleyado ng dalawang banko at coco levy beneficiaries ang matitinik ng malalim. Hindi ba dapat ayusin muna ang mga isyu gaya ng non-payment of benefits o proper turnover bago umarangkada na naman sa panibagong merger?” she said.” noting “one painful lesson from the 2008 global financial crisis—that large banks are riskier, and tend to introduce more systemic risk into the financial system.

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