IF THE intention of Senator Imee Marcos in seeking the dissolution of the Philippine International Trading Corporation (PITC), a trading office under the Department of Trade and Industry, is to cover up for the misdeeds of those running it, then it only means one thing—there are more dirt to be exposed.
The corruption in the award to Pharmally Pharmaceutical Corporation, through PITC and the Procurement Service of the Department of Budget and Management (PS-DBM), could just be the tip of the iceberg.
PITC under fire
Early this year, the PITC came under fire when some senators exposed that it was being used by some heads of government agencies and bureaus as “parking” area for their unused and excess funds, which PITC in turn deposit in banks to earn hefty interest incomes that only heaven knows who benefits from such extra income.
But as it is, these parked funds could have served the agencies better if they bought needed fire trucks, supplies and other stuff essential for their operations.
But still, PITC held on to these funds without intending to return any to the Bureau of Treasury (BTr) for reallocation.
It is for this reason that last September 7, Senator Sherwin Gatchalian also sought the dissolution of PITC and PS-DBM to stop the agencies’ “bad habit” of parking funds.
Probe PITC head first
Whatever the reason behind the recommendations of some of our lawmakers to abolish PITC and also PS-DBM, it is imperative that PITC’s head Dave Almarinez be investigated first on various reports of corruption in the agency.
That way, he will be given a chance to explain the reports of shenanigans in PITC and in the process clear his name.
Quite curiously, reports have it that Almarinez has US$16 million in net worth, or a personal wealth of about a billion pesos or P880 million, easily making him one of the richest persons in the province, if not the country.
Even more curiously, nothing in his online records would show and explain how he has accumulated so much wealth before he joined PITC.
He has to explain what business he was in before he joined PITC that allowed him to become almost a billionaire.
What is known of him in the corporate world is his success in networking in marketing, but not in the level that had made him “one of the most popular businessmen in the Philippines.”
Of course, he ventured in politics as a Biñan City resident, winning a seat in the provincial board of Laguna. Now it is reported he is interested in representing San Pedro City in Congress.
He was appointed to PITC in February 2017 when he spelled out his vision for it as “expanding PITC services to bring Filipino entrepreneurs across Asia and to the entire global market.
He is said to have had professional experience and significant executive leadership accomplishments in various private multinational corporations where he held senior executive positions.
Pharmally controversy
And then when the highly- irregular multi-billion- peso contracts were awarded to Pharmally Pharmaceutical Corporation from China, with links to President Duterte’s former economic aide, Michael Yang, the PITC again came into the picture in tandem with the PS-DBM.
It looks like PITC had digressed so far from the original vision the agency was created by virtue of Presidential Decree 252 of July 21, 1973 to establish trade with the socialist and other centrally- planned economy countries.
In 1977, the PITC’s mandate was broadened to be the prime mover in the expansion of Philippine trade worldwide through PD 1071.
Its website said that with an accumulated capitalization of P300 million, PITC opened the gates of the global market and engaged the country in international commercial activities that seek to ultimately benefit our domestic industries and local consumers.
Along this line, it seems right (at first look) for Sen. Imee Marcos to seek its abolition if only to get rid of the “systemic corruption” in the agency.
Would it?
Systemic corruption
In filing Senate Bill No. 2388, Marcos (whose father, the late strongman Ferdinand Marcos) is a patron of the Duterte family, said abolishing them would address the “systemic corruption” in both agencies.
Or would it?
Perhaps what she wants to achieve is for people to forget about their shenanigans once these agencies are collapsed.
Both PS-DBM and the PITC, were created during the time of the senators’ father, the late President Ferdinand Marcos.
Marcos, whose brother is gunning for the presidency or vice presidency next year, said the mandates of PS-DBM became “archaic and irrelevant” while PITC has weakened with the passage of Republic Act No. 9184 or the “Government Procurement Reform Act, which already strengthens the procurement service of national government agencies.
Breeding ground for graft
“The DBM-PS has become a fertile breeding ground for graft and corruption and, as such, should be abolished as it has outlived its functions to the national government,” she said when she sought the DBM-PS abolition through SB No. 2388.
“In addition to its mandate being affected by changes in national policies and legislation, the DBM-PS have dealt with issues regarding the exercise of their mandate in the previous years,” Marcos added.
In particular, she cited the recent controversies surrounding the Department of Health’s transfer of P42 billion to the DBM-PS for the procurement of face shields, face masks, personal protective equipment, and other pandemic-related purchases.
“This bill seeks to address the systemic corruption in the DBM-PS by abolishing the said agencies,” Sen. Marcos further said.
Should her bill become a law, in lieu of the abolition of the DBM-PS, the respective departments, agencies, Government Owned and/or Controlled Corporations (GOCCs), State Universities and Colleges (SUCs), and Local Government Units (LGUs) shall, thereafter, undertake the procurement of common-use supplies, materials and equipment, Sen. Marcos’ bill said.
No more market for PITC
In the case of PITC, Marcos explained that the agency was “originally crafted as a mechanism to formalize trade with planned economies through government-to-government procurement.
“However, as of today, only two centrally- planned economies are in existence, which are Cuba and North Korea,” she said in Senate Bill No. 2389 seeking the abolition of the PITC.
“The Philippines has also moved away from government-to-government trade, as exemplified by the passage of Republic Act No. 11203 or the “Rice Tariffication Law” on 14 February 2019, among others.”
Like the DBM-PS, the senator also cited issues hounding the PITC such as the P11.02 billion funds transferred by various government agencies from 2014 to 2020 but remained unutilized as of December last year.
“There are reports of source agencies using the interest of money transferred to the PITC to generate savings, which are used by the source agency to fund bonuses, among others,” she also said in the bill.
“Thus, this bill seeks to address the systemic corruption in the PITC by abolishing the said agency,” Sen. Marcos said.