DBM urges Makati to adopt ATM payroll system

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Budget Secretary Florencio Abad urges Makati City's acting mayor to complete the transition to ATM payments.

Metro Manila (CNN Philippines) — The Department of Budget and Management (DBM) urged Makati City to adopt an ATM payroll system, citing a 2012 report by the Commission on Audit (COA) saying that the city was still paying some government employees using cash.

In a statement on Tuesday (July 14), the DBM said that the COA's annual audit report on Makati noted that majority of government offices were already using automated teller machines (ATMs) to pay employees.

But it added that there were news reports alleging that the city has not yet completed the transition to an ATM payroll system — making it the last local government in Metro Manila which still uses manual pay-outs.

“We understand that three years later, Makati City still pays around half of its employees in cash instead of through ATM. While they’ve made progress since then, we urge Acting Mayor Romulo ‘Kid’ Peña, Jr. to complete the transition to ATM payments," Budget Secretary Florencio Abad said.

"Not only are electronic payroll systems more efficient — they also help keep LGUs clear of ghost employees, since the creation of ATM accounts will require account holders to show sufficient proof of identification.”

The COA report noted that the use of ATMs can lower the risk of fund misuse, aside from promoting greater convenience, transparency, and accountability.

“The national government has been actively upgrading our financial management systems and pushing for the highest degree of transparency in our practices. We need local governments — especially those that manage sizeable resources like Makati — to stand with us in our drive for good governance,” Abad said.