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COTABATO CITY — To enhance the delivery of financial assistance to program beneficiaries in Geographically Isolated and Disadvantaged Areas (GIDA) in the Bangsamoro region, the Ministry of Social Services and Development (MSSD) in partnership with the Development Bank of the Philippines (DBP) signed a Memorandum of Agreement (MOA) on November 20, 2024, at the DBP Head Office in Makati City.
The partnership seeks to modernize financial support distribution from traditional cash-based disbursement to a more efficient digital method through DBP digital disbursement infrastructure via PesoNet Electronic Fund Transfer (PNEFT) system. This method is designed to streamline the distribution of financial assistance, making it faster and more convenient for beneficiaries.
MSSD is one of the 15 primary ministries of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
The digital platform will support program like the Lingkod Pamayanan Program (LPP) to facilitate the honorarium disbursement for Para-Social Workers (PSWs), Child Development Workers (CDWs), and learners from the Center for Persons with Disabilities (CPWD).
The event was funded by the United Nations International Children’s Emergency Fund (UNICEF) and Australian Aid as they show support to the implementation of the programs and platforms of the ministry.
Social Work Minister Atty. Raissa H. Jajurie led the delegation, accompanied by MSSD Bangsamoro Director General Mohammad Muktadir Ahmad Estrella and other high-ranking executives from both organizations.
The agreement signifies a collaborative effort to streamline the disbursement process of financial assistance, ensuring that those in remote and underserved areas within the BARMM region receive timely and efficient support. In addition, this will also be a campaign for financial inclusion to the marginalized sectors.
This initiative aligns with MSSD’s mandate to provide comprehensive social services to marginalized communities, particularly in GIDA areas where access to BARMM government assistance can be challenging due to geographical and logistical constraints. Through this collaboration, DBP’s extensive banking infrastructure and expertise in financial management will be leveraged to simplify the disbursement process.
Minister Jajurie emphasized the importance of social preparation for the Bangsamoro people, including securing legal documents and ensuring a smooth transition to digital processes. The partnership also promotes financial inclusion by allowing beneficiaries to receive and withdraw cash assistance via customized cards.
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“We are exploring a manner by which beneficiaries can have their own card, a customized card to be issued to them individually where cash assistance can be transferred and they can withdraw that,” Jajurie said.
Estrella discussed the need to adopt a modernized and efficient system for delivering social services.
“The digital disbursement mechanisms would significantly reduce the administrative burden on social workers, allowing them to refocus on their primary function of case management and ensuring that beneficiaries receive more personalized and effective support,” Estrella highlighted.
Meanwhile, DBP President and CEO Michael O. De Jesus highlighted the transformative impact of the partnership in streamlining financial disbursement processes, ensuring timely and efficient delivery of assistance to those most in need.
“This memorandum of agreement that we are signing today will accelerate the delivery of essential funds to disadvantaged households, affording them better livelihood opportunities and a chance to improve their way of life,” De Jesus noted.
DBP Senior Vice President Antonio Owen Maramag underscored that transaction fees will be minimized, making the digital transfer system more cost-effective compared to other e-wallet systems.
“We just expect to the transaction fees between BARMM and the DBP. We’ve agreed to keep it minimal, like it’s a fixed passionate fee, and it’s a fixed electronic fund transfer fee. So, that’s the only transaction fee and administrative cost that BARMM will shoulder from their operating expenses,” said Maramag.
“This is more effective and less expensive compared to other E-Wallets,” Maramag added.
Under the agreement, MSSD beneficiaries will benefit from faster disbursement which streamlined processes to minimize delays in the delivery of financial support, improve accessibility in the utilization of DBP’s banking network to reach GIDA areas, and transparency and accountability to enhance mechanisms to ensure that funds are transferred effectively and reach intended recipients.
Present during the MOA signing were MSSD heads including Chief of Staff, Atty. Anna Liza Mones, Director for Programs and Operations Services, Hasim Guiamil, Planning and Development Division Chief, Jamal M. Ali along with Haysam Salik, Disaster and Response Management Division chief, Racma Abdula along with Sandra Gani, DRMD Social Welfare Officer III, Finance and Management Support Service Division Accountant Chief Al Ammen Silo along with Shanor Salik, Legal Division head, Atty. Sittie Rhaodda A. Raniai, FAST Unit Focal Person, Fahad Sabal, Protective Services and Welfare Division representative, Mohammad Acerdin Kasuyo, Administrative and Management Services Division representative Juhaira Umpar, and Gwyneth Castillon and Diane Macion from the office of the Bangsamoro Director General.
Moving forward, the initial timeline for the pilot implementation of the digital disbursement system has been tentatively set for the first quarter of 2025. The MSSD will conduct social preparation and education for beneficiaries on digital payments and card usage, allocate budget for transaction fees and administrative costs, identify initial programs for implementing digital disbursement starting with more accessible areas, and conduct proof of concept demonstration for card issuance process.
Furthermore, the ministry will also lead the upcoming BARMM Inter-Ministry Workshop and Summit to convene all BARMM Ministries, Offices, and Agencies (MOAs) related to cash assistance. (/)