As part of its anti-corruption campaign, the Aquino administration launched a Cashless Purchase Card system on Wednesday’s Good Governance Summit.
Under the system, government’s financial transactions will be made through electronic means instead of cash or checks.
“A recent study identified that one of the major financial risks remaining is the high volume of cash advances in agencies. The risks of this kind of system are obvious: the presence of large sums of cash in offices can pose a temptation to even the most honest employee—not to mention those who would willingly take advantage of such a situation,” Aquino said.
The cashless card will function like a credit card which government employees and offices can use for their procurement needs. The cashless system is a joint effort between the Aquino administration and Citibank.
“We are far from being a cashless society: 98 percent of all retail financial transactions in our country are still made in cash. The government seems to be ahead of the market, with 54 percent of its financial transactions already done through a cashless system,” the President noted. “For the sake of accountability and efficiency, we are pushing the envelope further.”
The system will initially be implemented across three agencies: the Departments of Budget and Management, National Defense, and the Armed Forces of the Philippines.
“A limited number of cards will be distributed to these agencies, with allowable purchases likewise limited to medical supplies, meals, the transportation of official documents, airline tickets, and construction supplies for minor repairs. If all goes well, the program will be rolled out and cashless purchases cards will be distributed in other national government agencies next year,” Aquino said.
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