PBBM: Shield up vs Web scams

A day after the world saw a crash in the global digital network and two days before his third State of the Nation Address (SoNA), President Ferdinand “Bongbong” Marcos Jr. signed into law twin measures to increase online security.

The new laws will allow transparency in the procurement process and protect Filipinos from online fraud.

In a Malacañang ceremony on Friday, Marcos signed the New Government Procurement Act (NGPA) or Republic Act 12009 entitled “An Act Revising Republic Act 9184, otherwise known as the Government Procurement Reform Act, and for other purposes.”

With the new law, loopholes in the current government procurement system will be plugged while new modes toward a “more economical and responsive procurement process” will be introduced.

The other law, the Anti-Financing Account Scamming Act (AFASA) or Republic Act 12010 is entitled “An Act Defining and Penalizing Financial Account Scamming and Other Offenses, and providing for the enforcement mechanisms.”

This new law mandates the implementation of robust security and authentication measures to combat financial fraud and cybercrimes like the use of money mules and social engineering schemes.

“We have just signed into law two bills that will move us closer to attaining a strong, more responsive, and efficient bureaucracy and to establishing safeguards for the financial rights and welfare of every Filipino,” Marcos said in his address.

The President said the NGPA streamlines the procurement process from three months to just 60 days through standardized forms and electronic procurement.

“This will afford greater flexibility for government agencies in choosing how to best acquire goods and services,” he noted.

Marcos said the NGPA also introduces a new concept for state auctions such as the “most economically advantageous responsive bid.”

“This is an attempt to consider the qualitative, not only the purely quantitative, value of any proposal, as an alternative to the prevailing practice of choosing just the cheapest product, or what we now call the lowest calculated and responsive bid,” he said.

Marcos said the concept would free the government from the obligation to select the lowest-priced bid when there is a better choice.

“This will ensure that we get not only the best prices but the best deals for our clients, the Filipino people,” he added.

Another important feature is the conduct of strategic procurement planning, mandating more detailed and purposeful planning to increase the success rate of transactions.

“In procurement, we also take into account our environment. The inclusion of sustainable and green practices in this law demonstrates the country’s commitment to addressing the worsening pollution and challenges of climate change,” the President said.

On the law against online scams, “Financial institutions are now mandated to implement necessary safeguards to protect citizens’ accounts, and this is essential at this time as cybercriminals use technology to defraud fellow Filipinos, causing not only personal economic loss to them but also a loss of trust in financial institutions,” he said.

“The President believes the AFASA would protect Filipinos from falling prey to perpetrators who target their banks and e-wallet accounts,” he added.

“The AFASA also defines and penalizes money-muling activities, social engineering schemes, economic sabotage, and other offenses involving financial accounts,” he pointed out.

AFASA authorizes the Bangko Sentral ng Pilipinas (BSP) to investigate financial accounts suspected of being illicit and to apply for cybercrime warrants for electronic equipment used in any violation of the measure.

“I hope that through this law, we can deter the majority of the financial scams that we have been seeing, while at the same time foster greater trust in our digitization efforts,” Marcos said.

Fiscal integrity upheld

The BSP said the AFASA “would uphold the integrity of the financial system.”

BSP Governor Eli M. Remolona Jr. said the law gives the central bank limited authority to examine and investigate bank accounts, e-wallets and other financial accounts involved in the prohibited acts.

Under the law, responsible institutions are given the authority to hold disputed funds in financial accounts under certain conditions, as well as initiate a coordinated verification process to validate the disputed transactions.

The AFASA mandates that BSP-supervised institutions employ adequate risk and fraud management systems to ensure that their clients’ financial accounts are protected.

Senators weigh in

Senate President Francis “Chiz” Escudero described the two laws as “critical” measures that “mark a significant step forward in our commitment to transparency, accountability, and the protection of our citizens from financial scams.”

“With the rise of digital transactions, financial scams have become more sophisticated, so AFASA will give law enforcement the tools needed to detect, prevent, and prosecute these crimes more effectively, protecting the financial well-being of our citizens,” Escudero noted.

Escudero believes strengthening the procurement processes and protecting financial systems “will help build a more resilient and trustworthy system that our citizens can rely on.”

“We are not only promoting good governance but also fostering a safer and more secure environment for our people,” he said.

Senate Majority Leader Francis Tolentino said the dual measures will enhance efforts to battle graft and fraud.

“A streamlined and more transparent procurement process means faster and greater efficiency in the delivery of government services. This also means less opportunities for graft and corruption,” he said.