Will cashless transactions curb AFP 'conversion?'

MANILA - Will cashless transactions curb the alleged "conversion" system in the Philippine military? Presidential Spokesman Edwin Lacierda directly addressed the question following the launch of the cashless purchase cards. Under the system, government's financial transactions will be made through electronic means instead of cash or checks. The cashless card will function like a credit card, which government employees and offices can use for their procurement needs. Lacierda admitted there were abuses in the past that allowed military officials and corrupt suppliers to pocket government funds. Under the "conversion" system, the military will award supply contracts to corrupt contractors in exchange for a cut of the funds. The suppliers will then deliver either substandard or even no deliveries of the goods to the military. The corrupt system could not be immediately detected since the transactions had legitimate receipts from the suppliers. Lacierda said the cashless system will allow government to check how the cards are being used by the accountable officers. "You are able now to use the card to purchase items at may accountability kaagad. Hindi yung saka mo pa malalaman kung saan ginamit ang pera. May report kaagad na ma ge-generate," he told reporters. "Conversation was prevalent in the past. We are moving away from conversion and moving to cashless purchase," he added. He said he will leave it to Budget Secretary Butch Abad to explain why government chose Citigroup to partner with for the cashless purchase card system. Cashless purchase cards will first be distributed to the Department of Budget and Management, Department of National Defense and the General Headquarters of the Armed Forces of the Philippines during the first quarter of the year. The cards can be used to purchase medical supplies, meals, transportation of official documents, airline tickets, and construction supplies for minor repairs. "If all goes well, the program will be rolled out and cashless purchase cards will be distributed in other national government agencies next year," the President said. ANC, January 15, 2014