State firms to use Landbank purchase card for transactions

MANILA, Philippines — The Department of Budget and Management (DBM) and state-run Landbank of the Philippines have agreed to use a digital government purchase card (GPC) to ensure more efficient transactions among agencies.

DBM and Landbank recently inked a memorandum of agreement for the use of GPC that aims to streamline and expedite the procurement of goods and services by state agencies in a more efficient and cost-effective manner.

The GPC is a credit card to be issued and facilitated by Landbank to authorized government personnel and is programmed with pre-assigned credit limits and merchant restrictions.

It can be used to pay for government agencies’ immediate miscellaneous expenses without going through the time-consuming paperwork and requisition process.

The GPC is part of the administration’s digital transformation thrust for the bureaucracy.

Budget Secretary Amenah Pangandaman said the collaboration with Landbank is a step toward cost savings for the government, as well as bureaucratic efficiency and ease of doing business.

“It will significantly reduce administrative costs by lessening cash and check handling and paperwork, simplifying reconciliation processes, shortening the requisition process, and promoting employee convenience,” Pangandaman said.

“The GPC will also enhance control by having a predefined credit limit feature, expense capture and monitoring, and a secure payment process,” she said.

Landbank president and CEO Lynette Ortiz, for her part, emphasized that the GPC will enhance operational efficiency, transparency, and accountability in the disbursement of public funds.

The state-run bank has an existing partnership with the Bureau of the Treasury and the Department of Finance for the use of GPC.

For the first half of 2023, the Landbank GPC had facilitated 998 combined transactions with a value of P5.1 million for various purchases and payments of the DOF and Treasury.

Among the GPC’s features are a 30-day revolving credit with full settlement on due date, access to point-of-sale and e-commerce transactions, global acceptance, email alerts for all GPC transactions regardless of amount, and electronic statements of account.