DSWD ordered to pay P55M LandBank claim for 4Ps payout

THE Land Bank of the Philippines (LBP) has won two petitions for compensation against the Department of Social Welfare and Development (DSWD) for unpaid service fees in connection with the payout of the Pantawid Pamilyang Pilipino Program (4Ps).

In two separate decisions, the Commission on Audit granted LBP’s claims worth P46.75 million and P9 million, noting that the DSWD admitted its obligations.

Both rulings were signed by COA chairperson Gamaliel A. Cordoba and Commissioners Roland Café Pondoc and Mario G. Lipana.

“The DSWD admitted its obligation to pay the bank in its Answer dated December 28, 2021. Thus, the LBP and its conduits are entitled to the payment of service fees in the implementation of the CCT Program,” the COA said.

The audit team leader (ATL) and the supervising auditor (SA) who reviewed the claim and its supporting documents recommended payments be made subject to mandatory deductions, including withholding taxes.

According to records, the LBP and the DSWD signed a memorandum of agreement on July 14, 2011 designating the state-owned bank as the official depository and disbursing bank for the Conditional Cash Transfer (CCT) Program, more commonly referred to as the 4Ps.

The bank was likewise authorized to accredit and enter into separate agreements with qualified CCT conduits for more efficient distribution of the assistance to household beneficiaries.

In consultation with the LBP, the DSWD formulated the Implementing Rules and Regulations for the release of the cash assistance through four different modes: cash card charging P20 per transaction, GCash Remit at P75 per payment form, countryside financial institutions/NGOs/cooperatives at P50 per acknowledgment receipt, and over-the-counter payout at P24 per beneficiary.

The bank sent a letter to the DSWD dated May 6, 2021 for the settlement of its long outstanding service fees receivables totaling P41.21 million which ballooned to P49.52 million after adding unbooked obligations in the sum of P8.3 million representing charges by the National Confederation of Cooperatives (NatCCo).

Auditors reduced the amount by P2.77 million on the ground that these were pre-paid card transactions with