Senate Minority Leader Franklin Drilon criticized Trade Secretary Ramon Lopez for “taking no steps” to revert to the Treasury some P33 billion in government agencies funds held by the Philippine International Trading Corporation (PITC), a trading firm attached to the Department of Trade and Industry (DTI).

“In the face of the recommendation of the Department of Finance and the Department of Budget and Management (DBM) 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, November 27.

“Secretary Lopez turns a blind eye and a deaf ear to a practice that is legally and morally wrong. It is willful ignorance,” Drilon added.

Drilon, a former justice secretary, warned Lopez and the PITC that the situation may constitute 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.

The government agencies placed their funds with the PITC for procurements, and not to be placed in money markets, he added.

In an earlier interview on CNN Philippines’ The Source, Lopez denied allegations by Drilon and other senators that P33.4 billion in different government agencies’ funds were “parked” with the PITC as a way to circumvent spending laws and hold on to the monies beyond spending deadlines.

Lopez said the funds were not “parked” or idle, but were to be used for “ongoing projects.” He said he would welcome a proposal to have the Senate investigate the matter.

As trade secretary, Lopez oversees the PITC as its chairperson.

Rappler reached out to Lopez for his reaction to Drilon’s accusations, but the trade chief has yet to respond to the query as of this posting.

PITC President and CEO Dave Almarinez also denied the allegations.

“We’d like to assure our esteemed lawmakers that we are not a valet service for obligated but unused funds of various government agencies. Neither do we operate a parking lot to gain commissions on the side,” Almarinez said in a statement on Wednesday, November 25.

Drilon and fellow senators Ralph Recto, Panfilo Lacson, and Francis Pangilinan have raised concern over the funds appearing to lie idle with the PITC, as lawmakers scoured items in the proposed 2021 national budget for possible sources of funds for COVID-19 vaccines and calamity response.

The senators opposed having the PITC conduct the procurement of COVID-19 vaccines for the government. In his statement, Almarinez said the firm has yet to be officially tapped for the purpose.

On Tuesday, November 24, Drilon called on the Senate to launch a legislative probe into the PITC and its involvement in government procurements. He also urged the state-owned trading firm to hand over the “parked” funds to the Treasury.

The following day, Finance Secretary Carlos Dominguez III wrote Budget Secretary Wendel Avisado a letter asking him to recommend to President Rodrigo Duterte that the funds held by the PITC be returned to the Bureau of the Treasury. Drilon sent reporters a copy of the letter.

The DBM runs the Government Procurement Service, which facilitates procurements for government agencies. This makes the nearly 40-year-old PITC redundant, Lacson said.

The allegations the senators made against the PITC were based on findings of the Commission on Audit, which were mentioned in the Senate’s recently-concluded deliberations on the proposed P4.5-trillion national budget for 2021.

Sourcing funds for COVID-19 vaccines proved to be a challenge for lawmakers in crafting the national budget. Of some P83 billion earmarked for the vaccines in the Senate’s version of the budget bill, only P8 billion have funds readily available. The rest – P75 billion – are unprogrammed, or dependent on the availability of government revenues.

The Executive estimated P73.2 billion would be needed to procure vaccines for 60 million to 70 million Filipinos – the number it would take to achieve herd immunity from COVID-19. The P33.4 billion with the PITC can cover a huge chunk of the amount, Pangilinan pointed out. – Rappler.com