A lawmaker has called for an inquiry into the loans allegedly extended by the Development Bank of the Philippines to big private corporations when these are primarily intended for small and medium-scale industries, a press release from Congress said.
Rep. Teodorico Haresco, Jr. (Party-list, Ang Kasangga) filed House Resolution 1646 directing the appropriate House committee to investigate the matter after receiving complaints that DBP has extended multi-billion loans to private corporations.
He said the DBP has violated one of its primary development thrusts which is to provide banking services principally to the medium and long-term needs of agricultural and industrial enterprises with emphasis on small and medium-scale industries.
He also said there is a need to restructure government financial institutions, particularly the DBP, to achieve a more efficient and effective use of available resources so that its assets will serve as guarantee fund for micro-entrepreneurs, farmers, fisher folks and others to avoid unfair competition with the private sector.
"DBP should prioritize lending to micro-enterprises and micro-entrepreneurs if it really recognizes MSMEs as a potent force in spurring development," Haresco said in the press release.*