DILG closes four unauthorized trust fund accounts, returns P12.98M

The Department of Interior and Local Government (DILG) has closed four trust fund accounts at Landbank of the Philippines, totaling over P12.98 million.

These unauthorized bank accounts were flagged by the Commission on Audit on December 23 for lacking legal basis under Executive Order No. 338.

The DILG explained that the accounts were used to ensure prompt release of funds for various programs but has now returned unused balances to source agencies or transferred them to other departments.

As of today, the remaining balance in one account will be utilized for unpaid claims before being remitted to the Bureau of Treasury (BTr) at year-end.

The DILG is coordinating with the BTr to establish a new Modified Disbursement System Trust Account under Landbank starting January 2025.