PH Army has P8.5-billion unliquidated funds parked at PITC from 2007-2020
Senator Panfilo M. Lacson on Tuesday, Nov. 16 said the Philippine Army (PA) has parked P15.97 billion of its funds at the state-owned Philippine International Trading Corporation (PITC) from 2007 to 2020 for the procurement of its requirements but P8.5 billion remains unliquidated funds.
This figure came from a report of the Commission on Audit (COA), according to Lacson when he questioned Senator Ronald ‘’Bato’’ dela Rosa, Senate finance co-chairman, on Tuesday’s budget debate on the proposed 2022 P229.6 billion budget of the Department of National Defense (DND).
Lacson, chairman of the Senate National Defense and Security committee, said PITC had zero deliveries to the PA on the Army’s requested procurements from 2019 to 2020.
He asked aloud why there is a need to park PA funds at PITC which has a not so good performance.
Lacson said Senate Minority Leader Franklin M. Drilon had stated that PITC’s performance leaves much to be desired.
He also told his colleagues that PITC charges four percent as operational expenses in handling funds from various government agencies that want to procurement their supplies, usually from abroad.
PITC could have had P640 million in operational funds had it delivered all the requested procurements for the PA from 2007.
‘’This is anomalous,’’ Lacson remarked.
Without batting an eyelash, dela Rosa said he agrees with other senators that the procurement services of the PITC and the Procurement Service, Department of Budget and Management (PS-DBM) should now be stopped and let government departments and agencies do their own procurements through their bidding committees.
Dela Rosa said Malacanang has not issued any directive ordering government agencies to park their funds at PITC and PS-DBM for the purchase of their requirements.
He said various government agencies were forced to transfer their funds to PITC and PS-DBM at the close of the fiscal year to avert the funds from being returned to the. National Treasury,