COA urges PS-DBM to return dormant P3-B invested in high yield savings | ABS-CBN
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COA urges PS-DBM to return dormant P3-B invested in high yield savings
COA urges PS-DBM to return dormant P3-B invested in high yield savings
Mike Navallo,
ABS-CBN News
Published Aug 29, 2022 01:18 PM PHT
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Updated Aug 29, 2022 01:41 PM PHT
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COA tells PS-DBM, it has no authority to invest in high yield savings accounts
MANILA — The Commission on Audit (COA) has urged the management of the Procurement Service of the Department of Budget and Management (PS-DBM) to return to the Bureau of Treasury (BTr) P3 billion in dormant funds previously invested in high yield savings.
MANILA — The Commission on Audit (COA) has urged the management of the Procurement Service of the Department of Budget and Management (PS-DBM) to return to the Bureau of Treasury (BTr) P3 billion in dormant funds previously invested in high yield savings.
In a letter to PS-DBM OIC Atty. Jasonmer Uayan dated June 29, the COA recommended that the management “instruct the Head, Treasury Division to remit immediately the balance of High Yield Savings account of P3.000 billion to the BTr.”
In a letter to PS-DBM OIC Atty. Jasonmer Uayan dated June 29, the COA recommended that the management “instruct the Head, Treasury Division to remit immediately the balance of High Yield Savings account of P3.000 billion to the BTr.”
Based on records reviewed by the COA, PS-DBM invested in high yield savings account with the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) to earn at higher interest rates than in current or savings accounts.
Based on records reviewed by the COA, PS-DBM invested in high yield savings account with the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP) to earn at higher interest rates than in current or savings accounts.
These investments however were already terminated in 2020. The amounts were reverted to PS-DBM’s current account with the LBP and the funds with the DBP worth P3.001 billion were reflected as “cash in bank - time deposits, local currency” in its records.
These investments however were already terminated in 2020. The amounts were reverted to PS-DBM’s current account with the LBP and the funds with the DBP worth P3.001 billion were reflected as “cash in bank - time deposits, local currency” in its records.
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The P3.001 billion deposit earned P1.363 million in interest income. The interest income was already returned to the Treasury bureau as of March 18, 2022.
The P3.001 billion deposit earned P1.363 million in interest income. The interest income was already returned to the Treasury bureau as of March 18, 2022.
But according to COA, not just the interest but the entire P3 billion should be reverted to the national treasury’s general fund.
But according to COA, not just the interest but the entire P3 billion should be reverted to the national treasury’s general fund.
The source of the P3 billion funds could not be specifically identified but since the funds with the PS-DBM came from client-agencies whose budgets are given annually, any fund balance should revert to the general fund of the national treasury, the agency said.
The source of the P3 billion funds could not be specifically identified but since the funds with the PS-DBM came from client-agencies whose budgets are given annually, any fund balance should revert to the general fund of the national treasury, the agency said.
“The High Yield Savings account has been established for more than five years and has remained inactive, with the incurrence of interest income as the only transaction,” COA noted.
“The High Yield Savings account has been established for more than five years and has remained inactive, with the incurrence of interest income as the only transaction,” COA noted.
Under both Executive Order No. 431 issued in 2005 and a 2012 joint circular issued by he Department of Finance, DBM and COA, all dormant accounts and unnecessary special and trust funds should be reverted to the general fund.
Under both Executive Order No. 431 issued in 2005 and a 2012 joint circular issued by he Department of Finance, DBM and COA, all dormant accounts and unnecessary special and trust funds should be reverted to the general fund.
Inactive accounts for more than 5 years are considered “dormant” while authorized special trust funds which are no longer needed for the purpose for which they were established are deemed “unnecessary special and trust funds.”
Inactive accounts for more than 5 years are considered “dormant” while authorized special trust funds which are no longer needed for the purpose for which they were established are deemed “unnecessary special and trust funds.”
“The non-reversion of the investment in High Yield Savings account maintained for over five years to the BTr’s GF (Bureau of Treasury’s General Fund) had not provided the NG (national government) additional funds for its operations,” COA said.
“The non-reversion of the investment in High Yield Savings account maintained for over five years to the BTr’s GF (Bureau of Treasury’s General Fund) had not provided the NG (national government) additional funds for its operations,” COA said.
The agency reminded PS-DBM not to go beyond its mandate and authority.
The agency reminded PS-DBM not to go beyond its mandate and authority.
“It is not in PS’s mandate to make investments and it has no authority to invest in High Yield Savings account. The practice of investing cash in a High Yield Savings account, therefore, deviates from its mandate of procurement of CSEs (common-used supplies and equipment) which requires the utilization of funds,” it said.
“It is not in PS’s mandate to make investments and it has no authority to invest in High Yield Savings account. The practice of investing cash in a High Yield Savings account, therefore, deviates from its mandate of procurement of CSEs (common-used supplies and equipment) which requires the utilization of funds,” it said.
The PS-DBM was established primarily to “provide smart procurement solutions” to government agencies by procuring “quality government requirements efficiently and economically from reputable sources” and encouraging a “fair, transparent and competitive environment.”
The PS-DBM was established primarily to “provide smart procurement solutions” to government agencies by procuring “quality government requirements efficiently and economically from reputable sources” and encouraging a “fair, transparent and competitive environment.”
However, the PS-DBM was mired in controversies surrounding the purchase of pandemic supplies and recently, of expensive laptops for the Department of Education.
However, the PS-DBM was mired in controversies surrounding the purchase of pandemic supplies and recently, of expensive laptops for the Department of Education.
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Marcos Jr. cuts taxes for energy players engaged in build-operate-transfer deals with gov't
Marcos Jr. cuts taxes for energy players engaged in build-operate-transfer deals with gov't
MANILA — President Ferdinand Marcos Jr. has ordered the reduction of real property taxes of independent power producers (IPP) who entered a build-operate-transfer (BOT) agreement with the government.
MANILA — President Ferdinand Marcos Jr. has ordered the reduction of real property taxes of independent power producers (IPP) who entered a build-operate-transfer (BOT) agreement with the government.
In his Executive Order No. 83, Marcos Jr. said that “all liabilities for real property taxes for CY 2024, including any special levies… on property, machinery and equipment directly used by OPPs for the production of electricity under the BOT scheme” shall be “reduced to an amount equivalent to the tax due if computed based on an assessment level of 15 percent of the fair market value” of these properties.
In his Executive Order No. 83, Marcos Jr. said that “all liabilities for real property taxes for CY 2024, including any special levies… on property, machinery and equipment directly used by OPPs for the production of electricity under the BOT scheme” shall be “reduced to an amount equivalent to the tax due if computed based on an assessment level of 15 percent of the fair market value” of these properties.
“All interests and/or penalties on such deficiency… are also hereby condoned, and the concerned IPPs are relieved from payement,” the order read.
“All interests and/or penalties on such deficiency… are also hereby condoned, and the concerned IPPs are relieved from payement,” the order read.
The order comes after the Department of Finance (DOF) raised concerns from various local government units that IPPs in their territories “are not entitled to exemptions and privileges enjoyed by other government-owned and controlled corporation.”
The order comes after the Department of Finance (DOF) raised concerns from various local government units that IPPs in their territories “are not entitled to exemptions and privileges enjoyed by other government-owned and controlled corporation.”
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The said discounted tax rate will be “applied to real property tax liabilities for succeeding years,” it said.
The said discounted tax rate will be “applied to real property tax liabilities for succeeding years,” it said.
The DOF was also mandated to submit to the President a progress report on the implementation of the order after six months.
The DOF was also mandated to submit to the President a progress report on the implementation of the order after six months.
Read More:
Ferdinand Marcos Jr.
Malacañang
energy
power generation facilities
tax
ABSNews
real property taxes
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