Senator Francis “Kiko” Pangilinan on Wednesday urged the administration to issue an executive order for the immediate withdrawal of the P33 billion government funds “parked” at Philippine International Trading Corporation (PITC).
The senator said the idle funds could be used to buy COVID-19 vaccines, noting that the country needs around P70 billion to immunize the initial batch of 60 million Filipinos.
“Since the PITC is under the Department of Trade and Industry, it is in the realm of executive action to order the immediate return of the said amount,” Pangilinan said in a statement.
“Because we are in search of funds to purchase vaccines, then an executive order that mandates the return of these funds to the National Treasury is well within the powers of the Executive,” he added.
Earlier, Senate Minority Leader Franklin Drilon revealed that more than P33 billion government funds were parked in the PITC.
“The latest financial statement as of December 31, 2019, indicates that customers’ deposits in PITC are P33.4 billion… You’re talking about P33 billion in government funds deposited in a small trading firm,” Drilon said in an interview on ANC, citing a Commission on Audit report.
Pangilinan to Palace: Issue EO withdrawing P33B ‘parked’ in PITC
“The deposits of the clients grew from P4.8 billion in 2015, suddenly in 2019 it grew to P33.4 billion,” he added.
This included P6.3 billion from the Philippine Army, P1.99 billion from the Philippine Navy, P736 million from the Philippine Air Force, and P582 million from the General Headquarters, said Senator Panfilo Lacson, who is also the chairperson of the Senate committee on national defense.
Drilon said that some government agencies might be practicing parking funds at the PITC to make it appear that their funds had already been “obligated.”
The increasing sleeping funds at the Philippine International Trading Corporation show that the firm’s delivery of services is “poor,” Drilon added.
The PITC was tasked to be the government’s purchasing arm for COVID-19 vaccines that will be acquired through loans.
However, senators have expressed doubts about whether PITC can deliver efficiently, considering its track record, which was allegedly marred with delays.
“Why bring that much fund to purchase vaccines into an entity that has failed miserably in delivering in terms of purchasing or utilizing funds in the last 10 years?” Pangilinan asked.