Question & AnswerQ&A (EXECUTIVE ORDER NO. 142)
The State's primary policy under RA No. 11524 is to consolidate the benefits due to coconut farmers under various statutes, expedite the delivery thereof to increase incomes for coconut farmers, alleviate poverty, and achieve social equality.
The GCG is empowered to determine whether it is in the best interest of the State to merge certain government-owned or -controlled corporations (GOCCs), based on its evaluation of these GOCCs' performance and relevance.
They must submit the proposal to the GCG for review and approval by the President.
LBP was granted universal banking powers with expanded activities, including lending to agricultural, industrial, and home financing projects and other productive enterprises.
The Memorandum involved rehabilitation of the UCPB, including financial assistance from the PDIC amounting to P12 Billion, which was converted into special preferred shares.
The merger was to strengthen the capability to deliver financial services to the coconut industry and agricultural sector, foster economic sufficiency, countryside development, financial inclusion, and banking system stability.
The merger requires approvals from the Securities and Exchange Commission and must conform to the conditions and limitations under RA No. 11524 and RA No. 11232 (Revised Corporation Code).
The PDIC approved the sale of its Special Preferred Shares in UCPB to LBP, and the acquisition considers the recovery of PDIC's financial assistance, valuation of shares, and LBP's return on equity.
LBP personnel separated due to reorganization may receive separation incentives determined by the LBP Board. UCPB personnel separated will be given separation benefits per UCPB guidelines and law. Eligible personnel may be rehired by LBP subject to civil service eligibility and requirements.
The other provisions of the Order not affected shall continue to be in force and effect due to the separability clause.
The Executive Order took effect immediately upon publication in the Official Gazette or a newspaper of general circulation.