By Eileen Mencias

Finance Secretary Carlos Dominguez III suspects that some courts are dragging their feet on rehabilitation or insolvency cases where Land Bank of the Philippines is among the creditors.

Dominguez has asked the Supreme Court to ensure that rehabilitation, insolvency and other related commercial cases are resolved within the one-year limit set in Republic Act No. 10142 or the Financial Rehabilitation and Insolvency Act of 2010.

“There appears to be a questionable trend of unwarranted delay and/or circumvention of court proceedings” in rehabilitation, insolvency, and liquidation cases if LandBank is the creditor,” said Dominguez, chairman of the state-run bank.

Dominguez noted that some LandBank debtors file petitions for rehabilitation or insolvency “for the sole purpose of absconding from their obligations while protecting their assets without genuine intention of rehabilitating businesses or settling obligations.”

“Case records where LandBank is a creditor-party suggest that some case proceedings may have been deliberately delayed,” Dominguez said.

As of the end of 2020, LandBank’s bad loans amounted to P25.6 billion, up more than 30% from the previous year.

The SC has sent a strong reminder to regional trial courts to not delay rehabilitation, insolvency and other related commercial cases and to follow the time limit set in deciding commercial cases.

The reckoning of the one-year maximum period is from the date of the filing of the petition.

The post Hoodlum in robe! Dominguez clams some courts sabotaging Landbank’s insolvency cases first appeared on Bilyonaryo Business News.



Hoodlum in robe! Dominguez clams some courts sabotaging Landbank’s insolvency cases
Source: Filipino Daily Inquirer