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MANILA, Philippines — The P3 billion high-yield investment of the Procurement Service of the Department of Budget and Management (PS-DBM) in government banks that was flagged by the Commission on Audit (COA) is intact.
This was asserted by PS-DBM chief Dennis Santiago on Tuesday, adding that they are already reviewing COA’s observation and will respond to it accordingly.
“The amount of P3 billion is intact, and I am for the return of the money to the national treasury soon as we have properly clarified the nature of the funds with COA,” he said in a statement.
State auditors earlier flagged the P3 billion investment, saying it is unauthorized and executed outside of its mandate.
The COA said the PS-DBM failed to revert the investment to the general fund of the Bureau of Treasury (BTr) in violation of Executive Order No. 431 dated May 30, 2004.
“Review of the Cash in Bank [such as] Time Deposits, Local Currency disclosed that the PS-DBM invested its funds in high-yield savings account with the LBP and the Development Bank of the Philippines (DBP), to earn interest at higher rates as compared to that of a current or savings account,” the COA said.
“It is not in PS-DBM’s mandate to make investments and it has no authority to invest in a high-yield savings account. The practice of investing cash in a High Yield Savings account, therefore, deviates from its mandate of procurement of CSEs which requires the utilization of funds,” it added.
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