SUMMARY
This is AI generated summarization, which may have errors. For context, always refer to the full article.
MANILA, Philippines – Government agencies as well as government-owned and-controlled corporations (GOCCs) now have until June 30 next year to transfer their bank deposits to qualified government financial institutions (GFIs).
The Department of Finance (DOF) said in a circular that the extension covers national government agencies (NGAs), local government units (LGUs), and GOCCs that have yet to comply with its circular issued last year, directing them to deposit funds only in GFIs that have passed the department’s standards.
Section 5.2 of Department Circular 01-2015 said that “all NGAs, GOCCs, and LGUs specifically allowed by law, rules and regulations to retain income and/or for operations and/or working balances shall deposit and maintain accounts with GFIs with a universal bank license and CAMELS rating of at least 3.”
Under a new circular issued by Finance Secretary Carlos Dominguez III, the compliance period for NGAs, GOCCs, and LGUs was extended to June 30, 2017.
“Accordingly, all NGAs, GOCCs or LGUs maintaining accounts with banks not compliant with the requirements of Section 5.2 of DC No. 01-2015, as amended, except those allowed under Sections 5.3 and 5.4 thereof, shall have until June 30, 2017 to transfer all funds and cash balances to a bank compliant with the provisions of said Section 5.2,” Dominguez said in the new circular.
This was “in view of the numerous requests received by the department, and to minimize operational impact among NGAs, GOCCs, and LGUs.”
Request for further extension
The DOF said NGAs, GOCCs, and LGUs may request for a further extension of one year if “the bank is still unable to meet the requirements of Section 5.2 of the circular.”
“The request for extension must be submitted at least 90 days before the deadline. DOF has until the day before the deadline to evaluate, and approve or disapprove the request,” the circular said.
If the government agency or GOCC does not request for an extension, or if its request is disapproved, the DOF said it “must transfer all funds and cash balances to banks that meet the requirements of Section 5.2.”
The department on June 1, 2015 directed NGAs, LGUs, and GOCCs to deposit funds only in qualified GFIs, to ensure that funds are tightly safeguarded. – Rappler.com
Add a comment
How does this make you feel?
There are no comments yet. Add your comment to start the conversation.