Senator Manuel “Lito” Lapid has filed a measure seeking to mandate government offices to adopt digital systems to expedite transactions and enable them to pay and receive digital currency.
The proposed “Use of Digital Payments Act” is part of the initial bills filed by the senator in the Senate for the 19th Congress.
Under the measure, all government agencies, including but not limited to national government agencies (NGAs), foreign-based government agencies, all government corporations, local government units (LGUs), State Universities and Colleges (SUCs), and local universities and colleges (LUCs), are mandated to utilize safe, and efficient digital disbursement.
The digital transactions can be used for payment of goods, services, and other disbursements including but not limited to cash assistance and payments of salaries, wages, allowances, and honoraria of its employees.
In his bill, Lapid wants government entities to be allowed to disburse funds directly into the recipient’s or beneficiary’s transaction account held in government or private financial institutions without the need for special arrangement with each of these financial institutions.
The senator stressed the need for digital transaction system as concerns in the spread of the Covid-19 led many of our countrymen to turn to digital payments to protect them from virus transmission using paper cash and coins.
With the shift to the “new normal,” Lapid noted more Filipinos are now using digital payments such as credit cards or e-wallet systems.
“Bagama’t pangunahin pa rin ang pag-gamit ng salapi, marapat na po natin tanggapin na magiging permanenteng bahagi po ng ating komersyo ang digital payments (though many people still use actual money for payment, it’s important for us to accept the fact that digital payments are now going to be a permanent part of commerce),” Lapid explained.
Under the bill government entities shall be responsible for preparing the payment instruction with the necessary details, including the recipient’s or beneficiary’s name, transaction account details, and amount after proper authorization in accordance with established accounting and auditing rules and regulations.
Accountable officers of the government entities would be required to observe due diligence in ensuring the accuracy of the recipient’s or beneficiary’s identity. He also said use of government funds through direct crediting shall remain transparent to state auditors.
“Mahalagang sumabay ang ating gobyerno sa mga pagbabagong dala ng panahon at mga pagsubok na hinaharap natin gaya ng pandemya (It’s very important for our government to be able to adapt to new trends and challenges we are facing like this pandemic),” Lapid stressed.
“Dahil dyan, isinusulong ko rin na bigyan ng insentibo ang mga magbibigay ng maayos at mabilis na digital payment system (Because of this, I am also pushing for the granting of incentives to any agency that can carry out efficient and faster digital payment system),” the senator added.
Lapid’s bill also pushes for possible penalties against any person or entity who would violate the proposed law, ranging from P200,000.00 or more than P2-million pesos, or by imprisonment of not less than two (2) years nor more than ten (10) years, or both, at the discretion of the court.