Budget Secretary Rolando Andaya Jr. said the EO allows the DBM’s Procurement Service (PS) to sell goods from its inventory to public sector groups, such as government cooperatives, which can now serve as "retailers" or "authorized outlets" of PS products.
The PS serves as the central purchasing arm of the government. Last year, it posted a gross income of P2.4 billion from the sale of 236 "common use" goods and supplies — ranging from pens and computers to soap — from its central and 12 regional depots.
"Although it is little known, the PS has been the government’s own SM," Andaya said, referring to a popular mall.
He said the government employee-run stores that will carry PS goods would be called "PS Marts."
Andaya, however, clarified that by encouraging the mushrooming of PS Marts nationwide, the government is "not going into the sari-sari (variety) store business because such agency-level commissaries will be owned, funded, and managed by the employees themselves."
"The project is deficit-neutral and does not need funds because it merely expands the clientele of the PS, not to individuals, but to associations," Andaya said. "Credit in depot purchases is not allowed and there would be no need for additional personnel because all depot sales are in bulk."
EO 524 was based on a proposal made by Andaya, who advocated the sale of PS goods to government employees as a non-wage benefit.
He said the PS depots have been receiving numerous queries from government employee organizations if they can be allowed to purchase items from their stock.
The attraction of PS stems from its being able to sell goods such as toilet paper, bath soap, detergent bars, paper, pens, office supplies at prices cheaper than those in retail outlets.
"In short, there is a demand and a ready market for such a service and the infrastructure backbone is already in place to meet it," Andaya said.