LBP-DBP merger needs Congress imprimatur — Lagman
ONLY Congress can decide on the merger of the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP).
This was stressed by Albay Rep. Edcel Lagman as he noted that only Congress can amend or repeal the charters of the two banks.
Lagman is reacting to reports that Malacanang is expected to issue this month an executive order (EO) approving the planned merger of LBP and DBP.
The legal or official merger of the two state banks may take place by November this year.
However, Lagman said the projected merger cannot legally be effected by a mere Executive Order.
“Only the Congress can grant legislative charters to operationalize Government Owned and Controlled Corporations (GOCCS), amend their charters, or abolish or merge GOCCs,” Lagman said in a statement.
The Development Bank of the Philippines (DBP) was created under Republic Act No. 2081 of 1958 and the Land Bank of the Philippines (LBP) was established by Republic Act No. 3844 of 1963. They have separate legislative mandates.
“The proposed merger of DBP and LBP necessitates the amendment of their respective charters by the Congress,” he said.
“Legislative enactment, not executive fiat, is mandatorily required to operationalize the proposed merger of DPB and LBP,” the veteran solon added.
