Banks told to enhance security for barangay checks

City officials recently urged authorized government depository banks branches in the city to enhance security with signature verification for barangay-issued checks by contacting the punong barangays prior to encashment of the same.

Under Resolution No. 245, series of 2024, local legislators stated that as a preventive measure against the misuse and abuse of fund disbursements, additional safeguards beyond the customary security protocols employed by authorized government depository banks are necessary.

The council claimed that it entails the establishment of a supplementary verification mechanism that mandates the inclusion of the punong barangay’s valid and registered contact number which shall serve as a means for authorized government depository banks to communicate with them verifying the authenticity  of their signatures on the checks and accompanying requisite documents prior to the encashment of the same.

The council pointed out that documented instances and ongoing occurrences have revealed that several barangays have fallen victims to illegally encashed barangay checks where the same reportedly involved the unauthorized encashment of checks without the knowledge or consent of the punong barangay as well as the forgery of their signatures on the said checks.

Further, legal proceedings have been initiated against various officials and personnel, mostly barangay treasurers, who have been found to have misused and abused the fund disbursement system and that the said legal actions had been taken in response to financial misconduct and branches of trust within the administration of barangay finances.

The body stipulated that the occurrence of such mismanagement is not only confined to the present as the said pattern of financial misappropriation extends beyond the current circumstances indicating a systematic issue that requires attention and remediation by concerned offices to prevent further misuse and abuse of public funds by erring personnel.

Copies of the approved resolution will be transmitted to the authorized government depository banks branches in the city, Commission on Audit (COA), City Treasury Office (CTO), City Budget Office (CBO), City Accounting Office (CAO) and other relevant government offices for their information, guidance, ready reference and further needed action. – Dexter A. See