Metro Manila (CNN Philippines, August 31) — The Procurement Service of the Department of Budget and Management (PS-DBM) said it will return to the national treasury the ₱3 billion in investment funds questioned by state auditors.
New PS-DBM Executive Director Dennis Santiago on Tuesday said the agency is reviewing the audit observation on the high yield savings account flagged by the Commission on Audit (COA), assuring the funds will be ready for remittance once the evaluation is complete.
“The amount of ₱3 billion is intact, and I am for the return of the money to the national treasury as soon as we have properly clarified the nature of the funds with COA,” Santiago said in response to media queries.
In its annual audit report, the COA ordered the PS-DBM to immediately remit the amount to state coffers.
It added the PS-DBM deviated from its mandate when it invested in high yield savings accounts with the Land Bank of the Philippines and the Development Bank of the Philippines “to earn interest at higher rates as compared to that of a current or savings account.”
“The practice of investing cash in a high yield savings account, therefore, deviates from its mandate of procurement of CSE (common-use supplies and equipment) which requires the utilization of funds,” COA added.
Santiago said he remains committed to improve the procedures in PS-DBM as legislators investigate procurement deals made through the office during the previous administration.
