Cheaper alternative! COA tells MMDA to shut down Metrobank account, switch to Bayad Center
The Commission on Audit has advised Metro Manila Development Authority (MMDA) to shut down its Metrobank checking account and move to a cheaper alternative.
In its 2017 annual audit report, COA questioned why MMDA used Metrobank, a non-authorized government depository, for the collection of traffic violation, anti-littering and anti-smoking fines from apprehended drivers and pedestrians.
As of 2017, MMDA maintained P65 million in deposits in its Metrobank account which it opened in 2004 to take advantage of the bank?s wide on-line, branch network.
MMDA noted that Metrobank services have become superfluous after it entered into a collection agreement with Bayad Center in 2016.
?The use of Metrobank as collection bank for fines imposed by MMDA has become impractical considering that the service is now also being catered by the Bayad Centers? network which covers practically the entire Metro Manila,? said COA.
COA said the Metrobank deposit has become even more untenable after the bank advised in December 2017 that it would increase the average daily balance to P72 million which the COA said was ?too high? compared to Land Bank?s ADB of P20,000 plus transaction fees.
COA also questioned the unusually high transaction fees charged by Metrobank on MMDA that i said could have ?redounded to the benefit of government.?
From 2016 to 2017, MMDA had a total of 199,356 transactions for traffic and anti-smoking and littering violations from which Metrobank charged a total of P2.99 million in transaction fees (P15 per transaction).
MMDA said they planned to close the bank account CA 067066313111 and transfer fully to Bayad Center which charged only P12 per transaction.