DBM flags DPWH, DOTr's P36-B uncashed checks
At A Glance
- The Department of Budget and Management (DBM) has reported a substantial amount of outstanding checks held by the Department of Public Works and Highways (DPWH) and Department of Transportation (DOTr), totaling P36 billion as of June 2023.<br>Of that amount, the DPWH accounted for P24.4 billion in outstanding checks, while the DOTr had P11.6 billion.<br>The outstanding checks can be attributed to various factors identified by DBM, such as delays or incomplete submission of required documents necessary for the release of the checks.<br>Additionally, contractors have played a role in the outstanding checks by failing to cash the checks they have been issued.
The Department of Budget and Management (DBM) has flagged the Department of Public Works and Highways (DPWH) as well as the Department of Transportation (DOTr) for holding substantial amounts of uncashed checks.
On Wednesday, Aug. 23, the DBM reported that the presence of "significant outstanding checks" held by the DPWH and DOTr was a contributing factor to the government's underspending that hindered the country's economic growth.
As of June 2023, the DBM revealed that a total of P36 billion worth of checks were found idle in these government offices.
Specifically, the DPWH accounted for P24.4 billion in outstanding checks, while the DOTr had P11.6 billion in uncashed checks.
The outstanding checks were attributed by DBM to delays or incomplete submission of required documents for check release, as well as contractors' failure to cash the issued checks.
“The huge outstanding checks recorded may be attributed to billing/payment concerns encountered by line agencies, such as late/incomplete submission of documentary requirements to facilitate release of checks/payments, and contractors’ non-encashment of checks issued,” DBM said.
The budget department also observed a significant increase in the amount of outstanding checks, rising by 91 percent from only P18.8 billion in the same period last year.
The DPWH had P18.5 billion in uncashed checks, while the DOTr had P300 million, as of June 2022.
Last week, Budget Secretary Amenah F. Pangandaman said that about P124.1 billion worth of government-issued checks are currently sitting idle in government offices and should have already been converted into cash.
Pangandaman said these uncashed checks were issued by national agencies, local government units (LGUs), state universities and colleges (SUCs), as well as government-owned and controlled corporations (GOCCs).
During their recent meeting at Malacañang, the budget chief said she informed President Marcos about the backlog, with other Cabinet secretaries present.
“Department heads participated in the Cabinet sectoral meeting with the President, where they made a commitment to enhance their [budget] utilization rates and have already begun developing catch-up plans to achieve their targets,” Pangandaman said.
Finance Secretary Benjamin E. Diokno said the government's catch-up spending program for the second half involves addressing the issue of approximately P124.1 billion worth of stagnant checks.
Once fully disbursed, Diokno said it would provide a substantial uplift to economic growth.
Earlier this month, Pangandaman released a DBM circular instructing government agencies to submit their spending catch-up plans by Sept. 15, 2023.