Senator disappointed in trade secretary’s ‘inaction’ on PITC

Senate Minority Leader Franklin M. Drilon is disappointed by what  he calls a “negligent attitude” of Trade Secretary Ramon Lopez towards the Philippine International Trading Center (PITC) and its “devious and shady schemes” that allowed the agency to hold back billions of pesos in public funds amid the depleting government funds due to Covid-19 pandemic and the devastating calamities that hit the country.

“In the face of the recommendation of the Department of Finance and the Department of Budget and Management secretaries, the continued defense of Secretary Lopez of PITC reminds us of the saying ‘see no evil, hear no evil, speak no evil’,” Drilon said in a statement on Friday.

As chairman of the board of the PITC, Lopez has taken no steps to revert over P33 billion “parked” funds to the national coffers, Drilon lamented.

“It is sad that in the face of COA findings, amid calls of the Senate, and in light of the DBM and DOF secretaries’ recommendations, here we have a DTI secretary who continuously refuses to do the right thing,” Drilon said.

“Sec. Lopez turns a blind eye and a deaf ear to a practice that is legally and morally wrong. It is willful ignorance,” he said.

Upon Drilon’s prodding, the DOF and DBM will recommend to the President the issuance of a directive for the immediate return of over P33 billion “parked” funds to provide funding to the cash-strapped government.

This is after COA found out that PITC is holding billions of government funds for various agencies.

The former justice secretary warned Lopez and PITC that there could be a violation of the anti-graft law.

“The PITC management may be held liable for technical malversation for using the funds of the agencies for a different purpose from which these were originally appropriated by law,” Drilon said.

These agency funds are transferred to PITC for procurement of products and services authorized under various General Appropriations Act. These are not meant to be placed in money markets.

Drilon reminded PITC to heed the call and warning of COA to “stop the practice of utilizing the unused balances from completed projects for other purposes, unless authorized in accordance with the provisions of the General Appropriations Act”.

The officers of PITC may also be penalized under Republic Act 3019 or the Anti-Graft and Corrupt Practices Act, he added.

Section 3 (e) of the Anti-Graft Law states that “Causing any undue injury to any party, including the Government, or giving any private party any unwarranted benefits, advantage or preference in the discharge of his official administrative or judicial functions through manifest partiality, evident bad faith or gross inexcusable negligence” shall constitute a corrupt practice.

Drilon also said PITC’s refusal to return the exact amount of interest income poses undue injury to source agencies and the national treasury through gross inexcusable negligence or manifest bad faith.

Section 3 (g) of RA 3019 further penalizes the act of “Entering, on behalf of the Government, into any contract or transaction manifestly and grossly disadvantageous to the same, whether or not the public officer profited or will profit thereby.

Drilon further stated that PITC’s non-remittance of interest earned from money market placements financed by fund transfers from source agencies after COA’s demand prejudices the coffers of the source agencies and the national treasury.

He said this violates Section 3 (f) of the anti-graft law which states that “neglecting or refusing, after due demand or request, without sufficient justification, to act within a reasonable time on any matter pending before him for the purpose of obtaining, directly or indirectly, from any person interested in the matter some pecuniary or material benefit or advantage, or for the purpose of favoring his own interest or giving undue advantage in favor of or discriminating against any other interested party.”

The COA, in its 2019 audit report states insisted the PITC should “revert to the source agencies or general fund the unutilized fund transfers”, to return the unused balances of fund transfers for completed projects” and to “stop the practice of utilizing the unused balances from the completed projects for other purposes”.