Marikina Rep. Stella Quimbo | PHOTO: Facebook page of Teacher Stella Quimbo
MANILA, Philippines — Marikina City 2nd District Rep. Stella Quimbo urged the House committee on public accounts to probe the Land Bank of the Philippines (Landbank) as its lending portfolio showed 61.38 percent of its loans, or P694.55 billion, were allocated to corporations.
In a statement on Wednesday, Quimbo said Landbank focused its resources on corporations, “failing” to adhere to its mandate of supporting farmers, fishers, and small enterprises and “neglecting the very sectors it was created to serve.”
She added that only 0.09 percent of LandBank’s loans, or P1.07 billion, go to individual farmers, while smaller amounts were allocated to cooperatives and small and midsize enterprises.
“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,” Quimbo said.
“We need a full inquiry into how these loans are contracted and utilized,” she added.
Moreover, the lawmaker revealed that LandBank refused to provide critical information.
Quimbo pointed out that the bank’s “confidentiality clauses” do not apply to public loans with taxpayer funds.
“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,” she added.
Quimbo urged the LandBank “to return to its core mandate of supporting rural development and the marginalized sectors.”