DBM airs confidence cashless transactions will curb corruption

MANILA, Philippines - The Department of Budget and Management (DBM) expressed confidence that the government’s shift to cashless transactions will curb corruption, particularly unliquidated state fund transfers.           

Budget Secretary Florencio B. Abad said the initial implementation of the cashless purchase card system program is the first step in a string of reforms that will be carried out by the Aquino administration to root out corruption and ensure greater accountability and transparency in government transactions or operations.           

“Cashless cards will play a defining role in ridding government transactions of the corruption they’re notorious for. The cards will do away with petty cash advances and payments in procurement, and the details of each transaction will be recorded in real-time and on a web-based platform,” Abad said.

Abad said the implementation of the cashless purchase card system is very timely following the Commission on Audit’s announcement that unliquidated fund transfers from government agencies, corporations and local units to non-government organizations reached more than P5 billion as of 2011.  The amount was on top of the P6.2 billion in pork barrel funds that went to 82 NGOs.           

The program, launched in January this year, is currently being pilot-tested in the DBM and the Department of Defense-Armed Forces of the Philippines (DND-AFP).  The government partnered with Citibank in rolling out the cards, which will have features similar to most credit cards.           

In the pilot phase of the cashless purchase card system program, participating agencies will use the cards to procure medical supplies, meals, transportation of official documents, airline tickets, and construction supplies for minor repair projects.            

Abad said that the administration expects to implement the program across all government agencies next year, as well as expand the list of items that are eligible for procurement through cashless cards.           

“Automating government processes and switching to cashless solutions doesn’t only save time and resources. By integrating and digitizing the procurement process, we can seal off the gaps that make it easy for irregularities to happen. In the case of cashless purchase cards, we’re tying together what used to be separate transactions: procurement, payment, and auditing,” Abad said.            

“Once we’ve successfully established the use of these cards in government, there won’t be any room for unliquidated expenses, as every detail will be tracked from the beginning of the transaction. It’s not just a matter of doing our public auditors a favor. It’s also a matter of assuring our citizens that the government is using state funds honestly and responsibly,” he added.