Quimbo criticizes LandBank for straying from mandate
MARIKINA City 2nd District Rep. StellaQuimbo called out LandBank for failing to adhere to its original mandate of supporting marginalized sectors such as farmers, fishers, and small enterprises.
Quimbo highlighted how the government-owned financial institution has increasingly focused its resources on large corporations, neglecting the very sectors it was created to serve.
In a privilege speech delivered in the House of Representatives, Quimbo pointed out that LandBank’s current lending portfolio is heavily skewed towards large corporations, with 61.38% of its outstanding loans—₱694.55 billion—allocated to big businesses. In stark contrast, only 0.09% of its loans, or ₱1.07 billion, go to individual farmers, with even smaller amounts going to cooperatives and SMEs. This shift away from the bank’s original rural development mission raises serious concerns about its current priorities.
“LandBank was created to serve the underserved—not to compete with private banks in funding large corporations. Yet today, it has become a profit-driven institution, focused on servicing big businesses while neglecting the sectors that need its support the most,” said Quimbo.
Despite repeated requests from Quimbo for transparency, LandBank has refused to disclose critical information, invoking confidentiality clauses that she argues do not apply to public loans involving taxpayer funds. This lack of transparency undermines public trust and accountability, particularly when the loans are directly funded by taxpayers.
“It is the right of the people to know how their money is being spent. The lack of transparency in LandBank’s dealings with LGUs is a violation of the people’s right to information,” Quimbo stated. “We need a full inquiry into how these loans are contracted and utilized.”
Quimbo called for immediate action to address these issues and for LandBank to return to its core mandate of supporting rural development and the marginalized sectors it was established to serve.
She urged the House Committee on Public Accounts to conduct a full inquiry into LandBank’s lending practices, focusing on whether proper processes were followed and why transparency has been withheld from the public.
