Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

ETEENTH CONGRESS
First Regular Session

3269

HOUSE BILL No.

Introduced by
ACT Teachers Party-List Rep. FRANCE L. CASTRO,
GABRIELA Women’s Party Rep. ARLENE D. BROSAS,
and KABATAAN Party-List Rep. RAOUL DANNIEL A. MANUEL

AN ACT
ABOLISHING THE PHILIPPINE INTERNATIONAL TRADING
CORPORATION, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

The Philippine International Trading Corporation (PITC) was created through
Presidential Decree 252 to trade with Socialist and Other Centrally Planned Economy
Countries. It engages with exports, trade services and special trading arrangements, and
provides procurement services.

According to the 2020 annual audit report, the Commission on Audit (COA)
revealed that there are P11.022 billion fund transfers from various national government
agencies from CY 2014 to 2020 that remained unutilized as of December 31, 2020.
Furthermore. it is noted that P10.877 billion or 99% of the total unutilized fund transfers
were scheduled for bidding or procurement for CY 2021. The COA recommended
directing the concerned official of the PITC to immediately return the remaining
unutilized funds and residual fund transfers to the Bureau of Treasury.

‘The audit report found that the PITC has already returned P10.122 billion as of
March 31,2022. However. this huge amount could have been used for other programs,
projects and activities instead of being parked in the PITC. esp: amid the
economic and health crisis.

Moreover, there are more audit observations reported by the COA. such as
procuring various personal protective equipment without considering the lowest price
proposal, and procurement of information technology software and equipment that is


not supported by an Information Systems Strategic Plan duly endorsed by the
Department of Information and Communication Technology.

The 1987 Constitution and the Republic Act 9184, otherwise known as the
“Government Procurement Reform Act,” which mandates all procurement entities to
establish a single Bids and Awards Committee, have made the mandate of the PITC
archaic and irrelevant. Worse, it became a breeding ground for graft, corruption.
inefficiency and negligence of the duties of other government agencies. Thus. this Bill
seeks to abolish the Philippine International Trading Corporation.

This Bill was first filed in the 18" Congress by Bayan Muna Reps. Carlos Zarate,
Ferdinand Gaite, and Eufemia Cullamat, ACT Teachers Rep. France Castro. Gabriela
Women’s Party Rep. Arlene Brosas. and Kabataan Party-List Rep. Sarah Elago as
House Bill 10263.

‘Thus, approval of this Bill is earnestly sought

potped

ng
Rep. ARLENE D. BROSAS Rep. iit DANNJEL A. MANUEL
GABRIELA Women’s Party KABATAAN Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

3269

HOUSE BILL No.

Introduced by
feachers Party-List Rep. FRANCE L. CASTRO,
GABRIELA Women’s Party Rep. ARLENE D. BROSAS,
and KABATAAN Party-List Rep. RAOUL DANNIEL A. MANUEL

AN ACT
ABOLISHING THE PHILIPPINE INTERNATIONAL TRADING
CORPORATION, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Republic of the
Philippines in Congress assembled:

SECTION 1. Declaration of Policy ~ \t is the policy of the State to maintain honesty
and integrity in the public service and take positive and effective measures against graft

and corruption.

SEC. 2. Abolition of the Philippine International Trading Corporation. — The
Philippine International Trading Corporation (PITC) created under Presidential Decree
252 shall be abolished.

In liew of the abolition of the PITC, the respective Departments. Agencies.
Government-Owned and/or -Controlled Corporations (GOCCs). State Univi s and
Colleges (SUCs), and Local Government Units (LGUs) shall, thereafter, undertake the
procurement of materials, equipment, and infrastructure projects.

The Department of Trade and Industry (DTI) shall undertake the functions of the
PITC in relation to facilitative trade-related services, responsive business solutions, and
trade-related government-to-government transactions, among others.

SEC. 3. Separation and Retirement from Service. — Employees affected by the
abolition of the PITC shall receive separation benefits under the Government
Reorganization Law and other existing laws. rules, and regulations: Provided. That


those who are qualified to retire and receive retirement benefits shall be allowed to retire
under existing laws. rules, and regulations.

SEC. 4. Reversion of Funds. — n coordination with the concerned Departments,
Agencies, GOCCs, SUCs. and LGUs. the PITC shall revert all prior years” unutilized
advances to the National Treasury. Current year’s advances for the procurement of
supplies, equipment and all other funds held in trust by the PITC shall be returned to
the concerned Departments and Agencies.

SEC. 5. Special Audit. - The Commission on Audit shall conduct an updated special
audit on the transactions of PS-DBM and submit to the House Committee on Good
Government and Public Accountability and the Senate Accountability of Public
Officers and Investigations (Blue Ribbon) their findings, observations, and
recommendations within thirty days from the completion thereof. Based on the special
audit, the COA shall likewise recommend to the Ombudsman the filing of
administrative and criminal cases against all responsible public officers and employees
as well as private individuals and businesses.

SEC. 6. Repealing Clause. — All laws, decrees, executive orders, rules or regulations
and other issuances, or parts thereof. which are inconsistent with the provisions of this
Act, are hereby repealed or amended accordingly.

SEC. 7. Separability Clause. — If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any provision not affected thereby shall
remain in force and effect.

SEC. 8. Effectivity. — This law shall take effect fifteen (15) days after its publication in
the Official Gazette or in two (2) national newspapers of general circulation.

Approved,