MAP backs proposed CADENA Act

MANILA, Philippines — The Management Association of the Philippines, which expressed concern over the sharp slowdown in the third economic growth performance due to corruption issues, is supporting the goals of the proposed Citizen Access and Disclosure of Expenditures for National Accountability Act or CADENA Act to promote budget transparency and prevent misuse of funds.

MAP president Alfredo Panlilio told reporters during the group’s NEXTGEN Conference that using blockchain and digital platforms can help detect irregularities in the government’s transactions by making records visible.

“Everybody can really take a look at it and have a view. All transactions can be seen. So, you know, it’s tamper-evident,” he said.

“You’re able to identify if something is not right. So, at least it gives us an opportunity to start keeping track of all of this,” he said further.

The use of blockchain as a tool to fight corruption and protect the budget is part of the proposed CADENA Act.

To enable citizens to track how public funds are used, the proposed CADENA Act seeks to mandate government agencies to disclose all government transaction documents through a secure and tamper-proof digital public ledger system.

Sen. Paolo Benigno “Bam” Aquino IV said that government agencies will have nine months from the effectivity of the law to comply.

“If they don’t do it, there are penalties,” he said.

He said the posting of contracts is important to enable the public, watchdog groups, academe and media to track government transactions.

“We’re mandating it, we’re forcing the issue because that’s our money, the money of the people. There’s no valid reason for them to keep that secret. No valid reason to keep the documents on where the money goes,” he said.

Panlilio said there is a need to address the corruption issues amid the concerning third quarter gross domestic product growth performance of four percent, a four-year low.