MANILA – President Ferdinand R. Marcos Jr. has issued Executive Order (EO) 65 approving the merger of the leasing and finance corporations of the Land Bank of the Philippines (LBP) and the United Coconut Planters Bank (UCPB).
Under EO 65 inked by Marcos on Aug. 6 and made public on Friday, the LBP Leasing and Finance Corp. (LLFC) will serve as the surviving entity, given that the UCPB Leasing and Finance Corp. (ULFC) is “no longer achieving its expected objectives and purpose as a GOCC (government-owned or -controlled corporation).”
The Governance Commission for GOCCs (GCG) en banc found that the merger of LLFC and ULFC would be “in the best interest of the State” to eliminate any unnecessary overlap in their mandates and functions, according to the EO.
“LLFC and ULFC shall, in consultation with the GCG, determine the mode of the merger and implement the same with the approval of relevant regulatory agencies. All assets and liabilities of ULFC shall be transferred to LLFC,” the order read.
EO 65 directs the GCG, LLFC, and ULFC to ensure that the merger between the two entities would comply with Republic Act (RA) 11232, or the Revised Corporation Code of the Philippines, and RA 10667, or the Philippine Competition Act.
The merger will transfer all assets and liabilities of the UCPB to LBP, including its ownership shares in ULFC.
The LLFC and ULFC, both attached to the Department of Finance, are finance and leasing corporations extending credit to businesses for the acquisition of equipment and other assets.
The LLFC and ULFC are directed to prepare and implement an integration plan for the merger.
EO 65 also orders the reorganization and absorption of qualified officers and employees of the ULFC affected by the order.
The LLFC is tasked to submit its proposed reorganization plan to the GCG, as approved by the LLFC Board of Directors within one year from the effectivity of EO 65.
“Whenever applicable, affected officials and personnel of ULFC may be hired by LLFC, subject to the possession of the necessary service eligibility and other requirements prescribed for the position,” EO 65 said.
It also authorizes the ULFC Board of Directors to adopt a separation incentive package for affected officers and personnel of ULFC, using as reference the rates prescribed under EO 150 issued in 2021, which provides for the compensation and position classification system for GOCCs.
EO 65 takes effect immediately upon publication in the Official Gazette or a newspaper of general circulation. (PNA)
