State trading company being used 'to make it appear' funds are obligated: senators

MANILA - Several senators on Tuesday questioned the role and efficiency of the Philippine International Trading Corporation (PITC) in government transactions, noting that the state-owned company may only be being used to "make it appear" that budget allocations have already been obligated.

Several projects have been delayed because the funding has been stuck with the PITC, Senate President Pro Tempore Ralph Recto said during budget debates in the Senate.

"Their track record doesn't seem to be good. Sa Philippine National Police (PNP), it took them 4 years, hindi pa din nade-deliver," he said. noting that there are 242 towns without fire stations even if Congress "provided a budget" for these projects.

"Paano pa kung vaccine 'yan baka 4 years na wala pa din?" he said.

The PITC, an attached agency of the Department of Trade and Industry (DTI), is the Philippines' lone state trading company tasked to help businesses and agencies benefit from international trade.

Among its mandates is to "ensure the most efficient and cost-effective procurement services" and "contribute to the price/supply stabilization of goods and services."

Senate Committee on Environment Cynthia Villar said that in 2017, the DENR "identified composting facilities and plastic factories of all cities surrounding the Manila Bay" but the project has yet to be rolled out because the funding is "still with PITC."

"I suspect there would be many departments that have their budgets obligated this year to PITC to make it appear that it is obligated," Recto said.

"It shortchanges our public na inaasahan na 'yang proyektong 'yan dadating sa kanila pero eventually hindi din madedeliver," he said.

Senate Committee on Finance chairman Sonny Angara shared Recto's observation.

"It's a way to make it appear that an agency's budget has been obligated when true and in fact, it is just another layer and there has not been significant progress made."

After hearing these remarks, Senate Minority Leader Franklin Drilon urged the chamber to scrap the PITC's right to receive a 4 percent commission for every project it brokers.

"There should be no commission... prohibit the payment of commission to PITC, not only in COVID-19 but in all other cases," Drilon said.

"Government intends to use PITC for the purchase of vaccines. These are billions-worth of purchases," he said.

"Assuming its a P100-billion purchase, that's a P4-billion commission," he said.

The Senate has yet to pass a measure that would formalize Drilon's proposal to ban the PITC from receiving commissions.