President Duterte allows digital payments for government disbursements and collections.
PRESIDENT RODRIGO DUTERTE — On Monday, the President allowed the adoption of digital payments for government disbursements and collections.
This developed after the President issued Executive Order 170 which covers all departments, agencies, and instrumentalities of the government — including state universities and colleges, local government units (LGUs), and government-owned or -controlled corporations (GOCCs).
Executive Order 170 mandates those agencies to utilize safe and efficient digital disbursement in the payment of services, goods, and other disbursements — including in the distribution of financial assistance, as well as in the payment of wages, salaries, allowances, and other compensation to employees.
Likewise, Executive Order 170 allows covered agencies to disburse funds directly into the transaction accounts of beneficiaries or recipients, whether held in government or private financial institutions, without the need for a special arrangement from the financial institution concerned.
For this purpose, they can use the facilities of Government Servicing Banks such as Advice to Debit Account or interoperable EFT (Electronic Fund Transfers).
The covered government agencies will be responsible for preparing payment instructions, with all necessary details — including the name of the beneficiary, details of the transaction account, and the amount involved.
JUST IN: Malacañang issues Executive Order No. 170, ordering government offices to adopt digital payments for disbursements and collections. [2/2] @manilabulletin pic.twitter.com/IfwuvaUJ4L
— Argyll Cyrus Geducos (@argyllcyrus_MB) May 16, 2022
Also, Executive Order 170 mandates agencies to adopt a Business Continuity Plan to prepare for calamities and other emergencies wherein payments via digital means may not be effected to ensure continuity of the delivery of payment services. In those cases, non-digital payout channels may be considered by government agencies in the exigency of service.
A Technical Working Group (TWG) on the Adoption of Digital Payments will provide guidance and promote cost-efficiency and transparency in the procurement of digital payment solutions and will be composed of the following agencies: Department of Budget and Management (DBM); Department of Finance (DOF); Bureau of Internal Revenue (BIR); Bureau of the Treasury (BTr); and Government Procurement Policy Board (GPPB) Technical Support Office.
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All agencies, bureaus, departments, offices, or instrumentalities of the government with mandates relating to the adoption of digital payments are directed to render full assistance and cooperation to the TWG, as may be required to carry out its functions under Executive Order 170.
The Department of Information and Communications Technology (DICT), for its part, is mandated to take appropriate measures in order to ensure adequate internet connectivity to support government programs and policies on the digitalization of financial transactions.
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