Prohibition on Procurements on Cash-On-Delivery (COD) Basis

From Iskomunidad

Office of the Chancellor

January 26, 2011

Memorandum No. SSC 11-003

To : Deans, Directors and Heads of Units

Subject: Prohibition on Procurements on Cash-On-Delivery (COD) Basis


In accordance with the prohibition imposed by the Commission on Audit (COA) on procurements on "Cash-On-Delivery (COD) basis, please be informed that effective February 1, 2011, all purchases from local private suppliers on COD arrangements are no longer allowed.

However, procurements of items/ services directly from other government agencies (e.g. Procurement Services, National Printing Office, etc) including those of telegraphic transfers from the Development Bank of the Philippines (DBP) and the Lanbank of the Philipines (LBP) for direct procurements from abroad are still allowed.

May we likewise reiterate that procurements, regardless of the mode of payment are subject to RA 9184: existing government accounting and auditing rules and regulations and UP Diliman procurement guidelines.

For strict compliance and dissemination to all concerned.