DBM piloting AI, blockchain amid corruption scandal

The country continues to face economic easing in the wake of the flood control scandal, which led to the resignation of senior Cabinet members and the filing of cases against several public officials.

- By MARCO LUIS BEECH

Concerned about how to effectively manage and track public funds, the Department of Budget and Management (DBM) is piloting a blockchain system to prevent misuse and support ongoing investigations into public spending.

Budget Undersecretary Maria Francesca del Rosario told The STAR that the DBM is integrating blockchain into the action document release system (ARDS) to verify the authenticity of budget releases, through the creation of an unalterable digital record of funds.

“It’s not the only technological solution to track corruption. Right now, I’m talking with blockchain experts because I want them to review our system,” she said. “I’m thinking we might have to go back to the drawing board and redo the architecture.”

President Marcos recently directed Congress to prioritize the passage of the Citizens Access and Disclosure of Expenditure for National Accountability, also known as the CADENA Act, which was filed by Sen. Bam Aquino.

Del Rosario said the blockchain system aims to ensure that public funds reach their intended projects, particularly in cases involving the courts or audits.

“We can use it to create a token,” the DBM official said. “And then, it serves as proof that this is our authentic copy coming from ADRS. So basically, that’s the use case we have. In all of our digitalization projects, it has to address a specific problem.”

How does it work?

Del Rosario said that the bedrock architecture developed with the World Bank already includes a blockchain component, mainly applied to transactions such as tier-one budgets, which cover the annual operational funds agencies need to run their activities efficiently and tier-two on new projects.

“For example, tier one, you put it on the chain. Tier two, you will also put it on the chain. After that, once it’s in the National Expenditure Program (NEP), you can chain it there,” she said.