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Amenah Pangandaman, Secretary of the Department of Budget and Management (DBM), and Lynette Ortiz, President/CEO of the Landbank of the Philippines (LBP), signed a Memorandum of Agreement (MoA) on the use of a government purchase card (GPC), which streamlines and makes purchasing goods and services by government agencies faster and more affordable.
The GPC is a charge/credit card that Landbank will provide to authorised government employees. It will be pre-programmed with credit limitations and merchant restrictions. It is a component of DBM’s overall agency-wide pursuit of the government’s programme for digital transformation.
It allows for the prompt payment of miscellaneous expenses for government organisations without the need for time-consuming documentation and requisition processes.
The signing of MoA was praised by Secretary Amenah as a significant collaboration with the Landbank and noted as a significant cost-savings milestone as well as another step towards achieving administrative effectiveness and convenience of doing business.
She stated that reducing the handling and paperwork associated with cash and checks, streamlining the reconciliation procedures, speeding up the requisition process, and enhancing employee convenience, will drastically save administrative costs. The predefined credit limit feature, expense capturing and monitoring, and secure payment procedure features of the GPC will all improve control as well.
Additionally, LBP CEO Lynette reiterated that the government financial institution adheres to its obligations under good governance. She said that in their shared commitment to increased operational effectiveness, openness, and accountability in the disbursement of public monies, Landbank and the DBM are undoubtedly on the same page. They hope to produce more efficient and effective public service through the GPC by streamlining the purchasing of products and services.
In light of the productive collaborations with the Bureau of Treasury (Btr) and the Department of Finance (DoF), LBP is sure that DBM will gain from the usage of GPC to cut down on administrative costs for purchases and eliminate lead times for procurement.
A 30-day revolving credit with full settlement on the due date, access to point-of-sale and online shopping transactions, global acceptance, email alerts for all GPC transactions, regardless of size, and electronic statements of account are some of the characteristics of the GPC.
For managing purchase transactions, digital cards have become a game-changing tool for government organisations. The efficiency and ease of these electronic procurement instruments have been greatly improved. Digital cards let organisations move quickly through the procurement process by removing onerous paperwork and manual procedures.
Because there is less need for printing, shipping, and physical paperwork, this efficiency results in lower administrative costs. As a result, government employees can better spend their time and resources, concentrating on strategic activities rather than tedious administrative work.
Digital cards also offer accountability and transparency, which is a strong benefit. These cards offer an auditable record of transactions, ensuring that purchases comply with laws and regulations in an industry where regulatory compliance is crucial.
By allowing organisations to follow transactions as they take place, real-time reporting and monitoring capabilities further strengthen accountability. Such insight into spending trends facilitates prompt decision-making and reduces the possibility of managerial error. Digital cards also promote better vendor relationships since they encourage suppliers to offer competitive prices and outstanding service, which strengthens the procurement ecosystem.
Making educated decisions is facilitated by the data-driven insights provided by digital cards. Government agencies improve their understanding of their procurement strategy by gathering thorough data on spending patterns, vendor performance, and purchasing habits. The benefits of using digital cards for government purchases go beyond only efficiency; they also include openness, data analysis, and environmental responsibility.
