The Philippine International Trading Corporation (PITC) along with seven other state agencies has been called out by the Commission on Audit (COA) for not utilizing more than P13.17 billion worth of funding intended for government programs and projects.
At the end of 2020, the PITC was found to have the highest total unused funds, amounting to P11.022 billion, while the other agencies tagged were the National Electrification Administration (P1.559 billion), the Tourism Promotions Board (P216.724 million), Philippine Rice Research Institute (P200.278 million), Philippine Pharma Procurement Inc. (P157.742 million), National Resources Development Corp. (P18.462 million), Social Housing and Finance Corp. (P10.360 million), and Center for International Trade Expositions and Missions (P6.376 million).
According to the auditing body’s 2020 Annual Financial Report on Government Corporations, the funds received by the PITC and seven government-owned and controlled corporations (GOCCs) meant for projects and programs of the national government were neither used nor remitted back to the funding source.
Furthermore, COA stated that the funds that were used were not adequately “validated and monitored” by the utilizing firm.
These resulted in violations of COA Circular No. 94-013 from December 31, 1994, under which it is stipulated that the funded agency must submit Report of Checks Issued and Report of Disbursement within ten days following the end of each month, or the project’s stated period of completion.
Under the circular, any unused funds must be returned to the source agency upon the end of the project or program.
COA cited violations of the annual General Appropriations Act under which proper liquidation and remittance of unused funding are also mandated, as well as the Government Accounting Manual.
The concerned entities have been ordered by COA to “submit liquidation reports, immediately liquidate and return any unutilized funds.”