THE Philippine International Trading Corp. (PITC) has failed to deliver or implement P582.57 million worth of projects and procurement of the Armed Forces of the Philippines (AFP), the Commission on Audit revealed.
Ironically, government auditors pointed out that the military tapped the services of the PITC precisely to speed up project implementation.
“Fund transfers to PITC for the procurement of ammunition, equipment, tires and batteries, freight services and construction and rehabilitation of buildings, etc. in the GHQ-CO have remained undelivered from a period ranging from one to more than eight years,” the audit team noted.
The PITC is a government-owned or controlled corporation (GOCC) headed by its president, Dave Almarinez, who was appointed to the post by President Duterte in 2017.
Since the Revised Implementing Rules and Regulations (RIRR) of RA 9184 (Government Procurement Reform Act) gave PITC a maximum period of 136 days to complete the procurement process, it is already way beyond the deadline to accomplish its obligations.
And considering that some of the items ordered by the AFP are essential supplies, the COA said PITC has deprived the military of benefits from such items.
In addition, auditors pointed out that government funds that could have been used for other equally urgent programs were instead left tied up for years.
Based on a breakdown provided in the audit report released last July 9, PITC is holding P248.964 million funds from the AFP General Headquarters-Central Office (GHQ-CO); P333.6 million from the AFP Modernization Act Trust Fund (AFPMATF); and P104.304.305 million from the AFP Health Service Command (AFPHSC).
The AFP GHQ said it has notified the PITC of the COA’s findings in a letter dated January 26, 2021.
It instructed the GOCC to “expedite the procurement, delivery and completion of the remaining items.”
Failing this, the AFP demanded a full refund of the unutilized sums so that the money can be remitted back to the Bureau of Treasury
