Cops to start getting salaries from automated teller machines

The Philippine National Police (PNP) plans to phase out paychecks and shift to automated teller machine (ATM) cards as part of a move to modernize the salary payment system of the 120,000-strong police force.

PNP chief Director General Edgar Aglipay said PNP officials are in the process of finalizing arrangements with officials of the Land Bank of the Philippines for the full implementation of the new system.

He said disbursing salaries through ATMs will enable the PNP to save close to P1 million every month because the PNP can now forego the use of continuous form checks printed by the Computer Service twice a month for police personnel.

Aglipay noted that the PNP spends P3.89 on each check it prints out every 15th and 30th day of the month.

"The ATM payment system translates to a savings of P933,600 in monthly printing costs alone. The actual distribution of these checks to PNP units and personnel also entails added cost," he said.

Aglipay added that this system is "foolproof" because it will enable the PNP to get rid of "ghost cops," meaning those on the payroll who never, or rarely, report to work.

PNP spokesman Senior Superintendent Leopoldo Bataoil said the ATM payment system for salaries and allowances is part of the reform policies Aglipay initiated to insure transparency in all financial transactions made by the PNP.

Bataoil added that the new system is consistent with an anti-corruption plan Aglipay submitted to President Arroyo during the celebration of the PNP’s 14th anniversary recently at Camp Crame.

One of these anti-corruption measures is making sure that the PNP, according to Bataoil, is "e-compliant" under the electronic procurement system for supplies and equipment.

The PNP has also designated representatives from the Coalition Against Corruption (CAC) to sit as observers on the PNP bids and awards committee, which is in charge of handing out supply and service contracts.

Bataoil said under the new policy guidelines issued by Aglipay, civilians are now handling sensitive positions related to financial transactions.

Aglipay also set fixed term limits for comptrollers, budget and fiscal officers, finance officers and disbursement officers in the PNP.

At Camp Aguinaldo, Defense Secretary Avelino Cruz Jr. signed a memorandum of agreement with the influential Makati Business Club (MBC) and the Bishops-Businessmen’s Conference for Human Development (BBC) to help reform the Department of National Defense’s procurement system in a bid to rid the DND of corruption.

He said this move was part of the DND’s plan to improve the agency’s procurement process, which has been marred by corruption in past years.

Cruz said the agreement would "add flesh to a policy of transparency" he vowed to pursue when he took over as DND chief last year. It was co-signed by MBC executive director Guillermo Luz and businessman Ricardo Pascua, BBC co-chairman.

The two non-government organizations are recognized as affiliates of the CAC. AFP chief Gen. Efren Abu was among those who witnessed the signing of the memorandum.

"The objectives of the (agreement) are meant to put in place institutional, structural and systemic reforms that would reduce, if not eliminate, waste and opportunity for some to commit graft and corruption within our ranks," Cruz said.

Under the agreement, the DND officially designated the MBC and the BBC to observe and occupy one slot on the five-member DND bids and awards committee, chaired by newly appointed Undersecretary for acquisition Jose Santos.

Prior to his appointment, Santos retired as vice president and head of the commercial banking group of the Rizal Commercial Banking Corp. He was also the founding director of Bancnet Inc.

AFP vice chief of staff Vice Admiral Ariston delos Reyes will act as vice-chairman of the committee, whose members are Assistant Secretaries Othello Carag and Jose Ferrer.

DND officials said the private sector’s participation in government procurement procedures is required by law under Republic Act 9184, also known as the Government Procurement Reform Act. The law mandates transparency in procurement by allowing, among other things, the designation of private sector representatives to scrutinize the entire process.

These observers can make recommendations at all stages of contract bidding and engage the DND in dialogues to air their concerns and any problems they uncovered in the procurement process, as well as organize a public forum to present their findings.

Under the agreement, the DND shall provide all relevant information to the CAC team, require defense personnel concerned to be available for interview by the team, and assign a point man to act as the DND’s liaison with the CAC.