New administration to take up DBP, LBP merger

THE MERGER of the Development Bank of the Philippines and the Land Bank of the Philippines will likely happen under a new administration, alongside plans to bring down the number of state-run corporations to 85 by 2020 from around 98 at present, according to the Governance Commission for Government Owned or Controlled Corporations (GCG).

“That probably is going to happen in the next administration. There is just no time to do that now with six months remaining [in the Aquino administration],” GCG chair Cesar L. Villanueva said in a briefing on Monday when asked about the planned merger of DBP and Land Bank.

A pending bill in Congress seeks to merge the two state-run banks.

Earlier reports also revealed that a draft executive order was pitched to President Aquino to facilitate the merger.

Villanueva disclosed that other GOCCs in the financial and housing sectors would also be rationalized.

“There are about 14 GOCCs now that have been the subject of evaluation, which we recommended to the President,” who eventually decides which would face the ax, the GC Gchief said.

GCG data showed that as of end-2014, the number of GOCCs had been trimmed to 100 from 158 in 2012.

This year, two GOCCs were shut down: People’s Credit and Finance Corp., and National Livelihood Development Corp., Villanueva said.

The following GOCCs were also dissolved during the Aquino administration: Alabang-Santo Tomas Development Inc.; Bataan Technology Park Inc.; CDCP Farms Corp.; Cottage Industry Technology Center; Disc Contractors, Builders and General Services Inc.; HGC Subic Corp.; Human Settlements Development Corp.; National Agri-Business Corp.; NIA Consult Inc.; Philippine Fruits and Vegetables Industries Inc.; Philippine Agricultural Development and Commercial Corp.; Philippine Forest Corp.; PNOC Alternative Fuel Corp.; PNOC Development and Management Corp.; PNOC Shipping and Transport Corp.; San Carlos Fruits Corp.; Technology Resource Center; Tierra Factors Corp.; Traffic Control Products Corp.; and Zamboanga National Agricultural College-Rubber Estate Corp., the GCG website showed.

Next year, the number of GOCCs will be further cut to 94, until state-run corporations number only 85 in 2020.

While the number of GOCCs has been dropping, the sector’s total comprehensive income grew to P269.4 billion in 2014 from P149.8 billion in 2012.