Would cashless government transactions stop or at least curb corruption?

Corruption thrives where there are big bucks to be made between a private individual or party and government official/s who are willing and able to close a dirty deal.

And the corruption process is made quicker by the relative ease by which decisions and procedures are bent, twisted or largely ignored.

The nearer the two parties are to where the cash is, the faster is corruption consummated.

And so this administration, which vowed moral leadership through its Tuwid na Daan policy, is toying with the idea of getting money out of the way of government procurement process.

In fact, it has set a deadline for a cashless payment scheme.  

The government is looking to remove the use of cash in the purchase of office supplies by the end of 2011.

Budget and Management Secretary Florencio Abad shared the plan to use Cashless Purchase Cards in a discussion with editors and columnists of a major broadsheet.

Abad said everything the government agencies might need such as bond papers and office equipment would be bought through the CPC, stressing that this measure would eradicate kickbacks prevalent in government purchases when using cash.

He also added that government agencies could save up to 40 percent in costs because they would buy from the government their needed supplies.

We do not know if the new system was timed to impress the World Bank head honcho is in town for consultations with key economic officials and visits to communities which are benefiting from WB-funded projects.   

In fact, the WB expressed its support for President Aquino’s reforms, including fighting corruption, and is extending a $500-million credit line that can be rapidly drawn in case of major natural disasters.

WB president Robert Zoellick also said he assured the President  during their meeting yesterday of a new $2-million grant to help disaster-prone areas in the country gain access to global best practices in reducing disaster risks.

He praised Aquino’s attention to stopping corruption and making more efficient use of resources to overcome poverty, adding that good governance is vital if a country wants to accelerate growth to benefit all.

Zoellick said the bank was ready to assist the country’s infrastructure and investment plans.