DSWD converts cash aid into guarantee letters

The Department of Social Welfare and Development (DSWD), led by Secretary Rex Gatchalian, signed a memorandum of agreement (MoA) with 25 new service providers to enhance the efficiency of medical assistance for individuals in crisis on Sunday.

During the signing ceremony held at the DSWD Central Office, Gatchalian emphasized a key change in the assistance process.

“To improve efficiency, we are converting a significant portion of our cash assistance into guarantee letters (GL). This ensures that funds are used specifically for their intended medical purposes, such as services, medicines, and prosthetics, rather than for other expenses,” he said.

The MoA outlines that clients who receive a GL through the DSWD’s Assistance to Individuals in Crisis Situation (AICS) program will be accommodated by the participating service providers. These providers will offer medical services, medicines, and procedures as specified in the GL. A GL is a document issued by the DSWD that guarantees payment for the services outlined in the letter.

Gatchalian also highlighted the DSWD’s plan to automate the AICS program, which is part of the agency’s broader digital transformation initiative. “We are working on automating the entire AICS process, from dispensing to billing, to make it faster and more efficient. Our goal is to streamline service delivery and ensure timely billing and payments,” he explained.

The ceremonial signing was attended by DSWD officials, including Undersecretary for Operations Monina Josefina Romualdez, Assistant Secretary Ada Colico, and Program Management Director Assistant Director Edwin Morata.