The Audit Commission asserts that the practice of investing money in high-yield savings accounts is not within the mandate of the Procurement Service of the Department of Budget and Management.
MANILA, Philippines – The Commission on Audit (COA) has found that the Procurement Service of the Department of Budget and Management (PS-DBM) has a high-yield savings account holding 3.001 billion pesos.
State auditors said the account at the Development Bank of the Philippines was established more than five years ago and the source of the funds “could not be specifically identified”.
The COA ordered PS-DBM to close the account and place the funds in the National Treasury.
“It’s not in [PS-DBM’s] mandate to make investments and it does not have the authority to invest in [a high-yield savings account]“, said the commission.
“The practice of investing money in high-yield savings accounts therefore departs from its mandate to buy [common use supplies and equipment] which requires the use of funds.
This is not the first time that PS-DBM has been challenged for maintaining a high-yield savings account. In 2020, the COA queried the bureau for having a similar account with the Land Bank of the Philippines.
PS-DBM recently re-emerged in the spotlight in relation to the procurement it facilitated for the Ministry of Education, which involved 2.4 billion pesos worth of “obsolete” laptops.
This adds to the controversy he has faced over anomalous pandemic contracts with the government. (READ: LIST: Everything you need to know about Pharmally’s pandemic deal scandal) – Rappler.com