DSWD launches hybrid payouts to curb AICS abuse

By Rjay Zuriaga Castor

The Department of Social Welfare and Development will roll out a hybrid payout system in Western Visayas this year to reduce political intervention in the disbursement of financial assistance under the Assistance to Individuals in Crisis Situations program.

DSWD-6 Officer in Charge Joselito Estember said the hybrid payout mechanism aims to curb the involvement of government officials in offsite payouts and address issues encountered during previous assistance distributions.

“We will have a mechanism that we call a hybrid payout. We will have our partner, the LandBank, and their partner conduit who will give the assistance in our offsite payouts,” Estember said Tuesday, Jan. 27.

Under the mechanism, LandBank of the Philippines and its partner conduits will handle the actual release of assistance, with no direct involvement of DSWD personnel during distribution.

Offsite payouts refer to assistance distribution conducted outside DSWD offices, usually in facilities owned by local government units.

Estember said the directive came from DSWD Secretary Rex Gatchalian following the filing of cases against several barangay officials in Iloilo City accused of coercing beneficiaries to surrender part of the PHP 10,000 assistance intended for typhoon-affected communities.

“We still continue the blended mechanism, but the secretary is recommending that the regional offices implement a hybrid payout,” Estember said. “One reason is that DSWD lacks sufficient manpower to assign disbursing officers, which is why the secretary wants to remove the ‘ushering’ component of DSWD personnel in the actual giving of assistance.”

Estember said the full rollout of the hybrid payout system will depend on the situation, noting that immediate disbursement may still be required during emergencies such as floods and typhoons.

“There are crisis situations where immediate assistance is needed, so we cannot avoid special cases. It will really depend on the situation on the ground,” he said.

DSWD and LandBank have an existing memorandum of agreement aimed at streamlining the delivery of crisis assistance, with the system already piloted in the National Capital Region and Regions II, III, and IV-A.

Under the system, social workers first assess and validate applicants through the standard AICS intake process, which includes submission of identification cards and proof of crisis.

Once validated, DSWD generates a payout list and releases the funds to LandBank, which then coordinates with partner conduits such as USSC and Palawan Pawnshop for hybrid disbursement.

Beneficiaries no longer need to visit DSWD offices to receive assistance, as aid may be released digitally through e-wallets or cash cards, or physically through over-the-counter payouts at offsite venues such as barangay halls.

Beneficiaries are required only to present their validated identification or transaction receipts, with funds released immediately and digitally tracked.

Amid manpower constraints in on-the-ground assessments, Estember said beneficiaries may also directly visit DSWD satellite or extension offices to determine their eligibility for financial or material assistance during crises.

He added that Gatchalian also directed the expansion of DSWD services in more areas to further reduce political involvement in assistance distribution.

DSWD-6 is currently in talks with the local governments of Guimbal, Pavia, Pototan, Barotac Nuevo, Barotac Viejo, several towns in northern Iloilo, and municipalities in Aklan for the establishment of additional offices.

“Through the expansion, we are making sure that the public can access the services and there is no need to go through the bureaucratic process just to get our services,” Estember said.

DSWD-6 resumed the distribution of AICS in Iloilo City on Jan. 5, beginning with onsite payouts at its extension offices after a temporary suspension following alleged irregularities involving barangay officials and the agency’s subsequent investigation.