BTr launches Online Fidelity Bond System

MANILA, Philippines — Applications for fidelity bonding for public officials acting as custodians of funds or properties will soon be easier with the launch of the Online Fidelity Bond System (OFBS),  the Bureau of the Treasury (BTr) said yesterday.

Starting May 3, accountable public officials may submit their applications through the OFBS, a system developed by the BTr as part of its efforts to provide convenient service to the transacting public while minimizing face-to-face contact amid the pandemic.

While the system is on its maiden launch, payments can still be done over-the-counter with authorized government depository banks and through the Link.Biz portal of the Land Bank of the Philippines.

The bureau said it has also streamlined its fidelity bonding process by reducing the number of steps and documentary requirements.

Details of the new guidelines will be outlined in a new circular to be issued on May 3.

A fidelity bond functions as an assurance to the public that accountable officers will perform their duties and responsibilities faithfully and according to law.

This accountability is bonded and insured in the Fidelity Fund consisting of bond premiums collected by the BTr from accountable public officers having custody of funds or properties.

The fund answers for defalcations, shortages and unrelieved accountabilities of the bonded officials.

Among those typically bonded are disbursing officers, cashiers, treasurers and supply officers.

“As a custodian of the government’s financial resources, the Bureau of the Treasury values the importance of honesty, transparency, and accountability of public officers,” said National Treasurer Rosalia de Leon.

“We have been entrusted with such a huge responsibility and we owe it to our people to protect every centavo in our coffers through the fidelity bond,” she said.

With the new system, the BTr can improve its service for nearly 240,000 accountable public officials nationwide to secure or renew their fidelity bond.

Under the Public Bonding Law, all accountable officials are required to secure a fidelity bond prior to the discharge of their duties. Failure to do so will make them criminally or administratively liable.

“The Online Fidelity Bond System is a huge leap from our current bonding operations as it provides our clients a more convenient and efficient way of processing fidelity bonding applications,” said Deputy Treasurer Erwin Sta. Ana.