Bureau of Corrections Director General Gregorio Pio Catapang Jr. has ordered personnel handling funds belonging to persons deprived of liberty to secure fidelity bonds following the mishandling of a PDL trust fund at the Correctional Institution for Women.

Catapang directed superintendents of prisons and penal farms to ensure that personnel responsible for the custody, collection, disbursement and accounting of PDL trust funds are properly bonded before assuming their duties.

He said a fidelity bond serves as reimbursable insurance protecting the government against losses involving personnel entrusted with public funds, property or other government assets.

The directive followed an internal audit of PDL trust funds, including compensation earned by PDLs, conducted by BuCor's Internal Audit Service Unit from 28 August to 13 September.

Catapang ordered the audit following the discovery of the mishandling of PDL funds at CIW.

According to Catapang, the audit found no fraud, misappropriation or personal liability at the other facilities examined, including New Bilibid Prison and the Sablayan, Iwahig, Leyte, San Ramon and Davao prison and penal farms.

Despite the findings, Catapang ordered corrective measures across BuCor facilities to strengthen internal controls, improve documentation and transparency, and safeguard funds belonging to PDLs.

Superintendents were directed to immediately reconcile and validate PDL trust fund balances and investigate any discrepancies.

BuCor facilities were also ordered to prepare for the full implementation of the Cashless IPX System.

Once the system is fully operational, cashless transactions will become the general rule, while the handling, transfer, withdrawal or disbursement of physical cash will be limited to circumstances authorized under existing policies.

Catapang also ordered facilities to maintain accurate and updated transaction records, train and authorize personnel handling PDL funds, submit compliance reports and immediately report unauthorized cash handling, unsupported withdrawals, delayed or unrecorded remittances and other violations.

Facilities will also be subjected to periodic validation and audits by the IASU and other authorized oversight offices.