The Department of Social Welfare and Development (DSWD) will prioritize guarantee letters over cash assistance for medical needs after observing that some beneficiaries spent aid intended for medicines and treatment on other needs, including food and transportation.

Speaking during the DSWD Media Forum on Thursday, June 25, DSWD Crisis Intervention Program (CIP) Director Edwin Morata said the agency is prioritizing guarantee letters under the Assistance to Individuals in Crisis Situations (AICS) program to help ensure assistance is used for its intended purpose.

Morata said the shift also aims to reduce opportunities for fraud by requiring supporting documents and directing assistance through accredited providers.

Under the guarantee letter system, assistance is paid directly to partner pharmacies, hospitals, diagnostic centers and other healthcare providers instead of being released in cash to beneficiaries.

While the DSWD prefers the use of guarantee letters, beneficiaries may still request cash assistance, Morata said.

“Pwede naman mag-negotiate ng cash to guarantee letter or guarantee letter to cash [pero] mas preferred namin yung una. Pero may mga kliyente na very much open naman kami kasi we still you know value self-determination. At may kliyenteng nag-de-decide na gusto pa rin nila ng cash. Pero ang pakiusap namin pag nag decide kasi sila ng cash, we cannot give the value or amount na nasa guarantee letter (Clients may negotiate from cash assistance to a guarantee letter or from a guarantee letter to cash, but we prefer the former. We remain open because we value self-determination and some clients still choose cash assistance. However, if they decide to receive cash, we cannot provide the same amount that would be covered under a guarantee letter),” he said.

To support the transition, DSWD is expanding partnerships with establishments that accept guarantee letters.

The agency is now in its second year of partnership with Mercury Drug, which has 262 participating branches accepting guarantee letters.

It also recently forged a similar arrangement with Generika Drugstore, which has 238 branches accepting the documents.

Morata said the DSWD is also negotiating partnerships with Southstar Drug, Rose Pharmacy and Watsons to increase the network of establishments where beneficiaries can use guarantee letters.

Apart from pharmacies, hospitals and diagnostic centers, the agency has expanded the program to include animal bite treatment centers, blood banks and institutions offering psychosocial services.

As of May 31, the DSWD had released at least ₱9.22 billion worth of medical and funeral assistance through guarantee letters to 499,978 beneficiaries under the AICS program.