Quantcast
Latest Stories

Abad pet project: Credit card better than cash in DND

By

Corporate credit cards will replace the “petty cash” system in making small purchases at the Department of National Defense (DND), in line with the Aquino administration’s policy of transparency in government.

Starting this month, cash will no longer be used to purchase plane tickets, emergency medicine, groceries and other small items for the various service units of the Armed Forces, the Department of Budget and Management (DBM) announced Saturday.

“This is just a baby step. If this is successful, we can roll this out to other departments,” said Budget Undersecretary and Chief Information Officer Richard Bon Moya.

The switch to more cashless transactions in government is a pet project of Budget Secretary Florencio Abad, Moya said.

Because electronic payment methods are more efficient and transparent, the government stands to save “billions of pesos” every year as it will minimize leakages from corruption and the costs related to the handling of cash, he said.

Moya said the project would have been implemented last year, but the DBM had to secure the Bangko Sentral ng Pilipinas Monetary Board’s approval because the use of credit cards by government agencies essentially meant the state is taking out a loan.

Ninety-eight percent of all transactions in the country were still done using cash, according to a recent survey by the Better Than Cash Alliance, a multinational nongovernment organization that advocates the use of more efficient electronic payment methods instead of coins and notes.

The   Monetary Board has given its approval of the use of credit cards for small transactions at the DND.

The switch to credit cards at the DND is one of the first steps in the policy to digitize all government transactions, Moya said.

The DND was chosen for the pilot project, as the department has a reputation for bad record-keeping when it came to funds, he said.

The DBM will also be taking part in the pilot project, which is being undertaken in cooperation with the Better Than Cash Alliance.

The Better Than Cash Alliance was founded by the Bill and Melinda Gates Foundation and is partly funded by US financial giant Citi.

The government credit card works much the same way as a corporate credit card, Moya said. Credit limits will be determined based on past spending patterns of the DND’s service units—the Army, Navy and Air Force.

The use of the cards will also be limited to certain kinds of establishments to avoid abuses.

“If they try to use it in restaurants and bars, the cards will be declined,” Moya said.

He clarified that the cards are not meant to augment the petty cash budgets of the agencies involved. Instead, the cards will replace the cash that was previously used as the sole mode of payment.


Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Aquino Administration , DBM , Department of Budget and Management , Department of National Defense , DND , Florencio Abad , military corruption , petty cash




Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
  1. More legal woes for Cedric Lee
  2. Kim Henares needs a reprimand, says Cayetano
  3. Massive infra spending set
  4. OFW brings MERS virus to Philippines
  5. ‘No real progress in PH if dynasties not dismantled’
  6. Estrada, Gigi Reyes denied access to evidence from other respondents
  7. DOJ to NBI: Arrest Cedric Lee, 4 others
  8. Lacson’s wife loses diamond earring to thieves but recovers jewelry quickly with police arrest
  9. DOJ orders arrest of Cedric Lee
  10. Fr. Suarez says last Mass on Easter before returning donated land to San Miguel
  1. Suspect in Vhong Navarro mauling tries to leave PH
  2. MH370 co-pilot made mid-flight phone call – report
  3. Netizens cry: 6/55 Lotto was rigged
  4. I’ll follow my conscience on Estrada, says JV Ejercito
  5. ‘Wife of Jesus’ theory papyrus not fake – Harvard study
  6. Fr. Suarez says last Mass on Easter before returning donated land to San Miguel
  7. Gay college instructor arrested for oral sex with student
  8. ‘King’ Yabut and I: Driver bares Makati dad ‘abuses’
  9. It was difficult having Japanese blood
  10. Palace: We can’t blame increase in population on Vitangcol
  1. KL confirms Malaysian Airlines Flight MH370 ended in Indian Ocean
  2. MRT passengers pass the hat for 6-year-old Ashley
  3. Pork payoffs to newscasters Erwin Tulfo, Del Prado, others bared
  4. UP back on top as ‘average’ student aces bar
  5. Rookie, lady cops lauded for quick response to MOA heist
  6. Model Helena Belmonte wished ‘to slash her wrist and hope to die’
  7. Malaysia averts another air tragedy; pilot lands troubled plane safely
  8. Revilla says he was joking; Lacson stands by his story
  9. Revilla ‘consulted’ Lacson on how he evaded arrest
  10. Police rule out foul play in Helena Belmonte’s death as boyfriend is ‘traumatized’
Advertisement

News

  • Firetruck rams California eatery; 15 injured
  • 9 confirmed dead after ferry sinks off South Korean coast
  • Aquino to public: Learn to sacrifice
  • 20 killed as Islamic extremists rampage in Nigeria
  • Drug firm Novartis to help Leyte firefighter
  • Sports

  • Walker leads Bobcats over Bulls in OT, 91-86
  • Man City slips further out of title contention
  • Federer would skip tennis to be with wife, newborn
  • Manny Pacquiao in PBA? If so, he’ll wear No. 17
  • PSC sets Blu Girls US training
  • Lifestyle

  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Clams and garlic, softshell crab risotto–not your usual seafood fare for Holy Week
  • Moist, extra-tender blueberry muffins
  • Entertainment

  • American rapper cuts own penis, jumps off building
  • Jay Z to bring Made in America music fest to LA
  • Why Lucky has not bought an engagement ring for Angel
  • Derek more private with new girlfriend
  • ‘Community’ star happy with return of show’s creator
  • Business

  • Fired Yahoo exec gets $58M for 15 months of work
  • PH presses bid to keep rice import controls
  • PSEi continues to gain
  • Number of retrenched workers rose by 42% in ’13
  • PH seen to sustain rise in FDIs
  • Technology

  • DOF: Tagaytay, QC best at handling funds
  • Smart phone apps and sites perfect for the Holy Week
  • Tech company: Change passwords or suffer ‘Heartbleed’
  • Filling the digital talent gap
  • SSS to shut down website for Holy Week
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Syria most dangerous country for journalists, PH 3rd—watchdog
  • Japan says visa-free entry still a plan
  • First Fil-Am elected to Sierra Madre, Calif. city council
  • UC Irvine cultural night to dramatize clash of values in immigrant family
  • Filipino sweets and info served at UC Berkeley Spring Fest
  • Marketplace
    Advertisement