COA: Over P1B worth of equipment 'still undelivered' by PITC to PNP | Inquirer News

COA: Over P1B worth of equipment ‘still undelivered’ by PITC to PNP

/ 10:12 PM September 01, 2020

MANILA, Philippines — Some P1.036 billion worth of supplies remain “undelivered” by the Philippine International Trading Corp (PITC) to the Philippine National Police (PNP) since 2016.

This was according to a report of the Commission on Audit (COA), which noted that the PNP transferred a total of P1.347 billion to PITC for the purchase of crime-fighting equipment and that PITC was only able to so far deliver P311.068 million worth of gears to the police force.


The COA report was released on August 28.

“Funds transferred to Philippine International Trading Corporation (PITC) in CY 2016 amounting to P1.347 billion had been little served because it has only delivered a total of P311.068 million worth of equipment in CY 2019, leaving P1.036 billion still undelivered for more than three years,” COA said.


“The low delivery rate of 23.08 percent and undelivered equipment defeats the intention to which the PNP [has] engaged the services of PITC, that is, to facilitate the procurement process,” it added.

COA said the remaining balance consists of undelivered items like “utility trucks, automatic grenade launcher, light personnel carrier,” and other items.

COA noted that delays in the delivery of equipment to PNP go against the essence of Republic Act No. 9184 or the Government Procurement Reform Act.  The commission highlighted that Section 7.3.3. (a) says procuring entities may tap other government offices engaged primarily in procurement to ensure quicker project implementation.

COA then advised the PNP to require the delivery of the remaining items or demand PITC to refund the money so the institution may return it to the National Treasury.

But the PNP National Headquarters (NHQ) said in reply to COA that they have already discussed the issue with PITC and that some items were already delivered and merely awaiting a certificate of acceptance.

“NHQ Management commented that on November 14, 2019 representatives from Accounting Division, Directorate for Comptrollership and Directorate for Logistics met with PITC personnel and discussed the status of unliquidated fund transfers as reflected in the Summary of Project Status Report prepared by PITC,” COA said.

“In the said Report, the contracts with total Approved Budget for the Contract (ABC) amounted to P316,268,641.90 consisting of 141 units Light Machine Gun 7.62mm with ABC of P154,080,000.00, 8 units Light Machine Gun 5.56mm with ABC of P5,388,000.00 and 1,677 units of Basic Assault Rifle 5.56mm with ABC of P156,800,641.90 have already been awarded and delivered and awaiting issuance of Certificate of Acceptance,” it added.


The PITC is a government-controlled corporation. Its operation is aimed at helping government offices have a smooth procurement of needed items.  According to its official description on its Facebook page, PITC’s mission is to “open doors for the Philippine trade and industry sectors” and hopefully help the government “achieve its economic direction.”

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TAGS: audit report, automatic grenade launcher, COA, Commission On Audit, light personnel carrier, Philippine International Trading Corporation, Phil‎ippine National Police, Philippine news updates, PITC, PNP‎, PNP funds, PNP headquarters, police equipment, procurement, utility trucks
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