BSP had too much money, little storage space in 2015 – COA

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) experienced a shortage of storage space for new bills and coins in 2015, according to the Commission on Audit (COA).

Based on a COA report released on Thursday, June 30, the BSP ran out of space in its vaults to store new bills and coins last year, and had to decline the delivery of currency from its printing and minting suppliers.

The undelivered coins include:

• 4.61 million pieces of P5 coins
• 352.73 million pieces of P1 coins
• 523.64 million pieces of P0.25 coins
• 273.72 million pieces of P0.10 coins
• 121.59 million pieces of P0.01 coins

This led the BSP’s Security Plant Complex (SPC) to slow down currency production and miss the cash requirement quota by P257.85 billion.

Based on figures from the BSP, its Banknotes and Securities Printing Department (BSPD) and Banknotes and Securities Production and Management Department (BSPMD) had a 2015 quota of 3.87 billion pieces of bills of various denominations, but were able to deliver only 2.67 billion pieces – with a shortfall equivalent to a currency face value of P203.74 billion.

Meanwhile, the Mint and Refinery Operations Department (MROD) was supposed to produce 2.90 billion pieces of different coins, but delivered only 1.623 billion pieces – with a deficit equivalent to P540.152 million.

COA identified two factors that caused this problem:

• Although a new vault is now under construction, other storage spaces have not been upgraded over the years.
• Older bank notes that are being considered for removal from circulation for being unfit due to usual wear and tear undergo a slow evaluation process.

The BSP claimed that there was no shortage of currency in circulation, with the 2015 actual production surpassing the 2014 record.

But auditors explained that this was due to the inclusion of the fulfilled 2014 delivery balance of 1.647 billion pieces in various bills.

COA also recommended that the BSP look into expanding the storage facilities of its regional offices. – Rappler.com