Agency under DTI faces abolition for being 'fiscal burden' to govt

An agency under the Department of Trade and Industry (DTI) in charge of promoting the establishment of cottage and small-scale industries, among others, is facing possible dissolution for being a "fiscal burden" to the government.

Cottage Industry Technology Center (CITC) may be abolished after records from the Commission on Audit (COA) showed it incurred losses for five straight years despite receiving millions in government subsidies.

“CITC has therefore been a fiscal burden to the national government by being a heavily subsidized without generating the desired economic returns,” the COA said.
 
Based on its 2012 report, COA said the CITC has received P47.41 million in government subsidies from 2008 to 2012 but posted P53.18 million in net losses over the same period.
 
It said the agency's five-year gross revenues of P34.15 million were insufficient to even pay its personnel’s salaries and benefits totaling P61.483 million.

“Analysis showed that the total revenues earned by the agency were not even enough to meet the total expenses for personal services. The government will continuously incur losses should the operations of CITC (be) sustained,” COA said.
 
COA also noted that the Governance Commission on Government-Owned or Controlled Corporations (GCG) had already recommended the abolition of the CITC in a letter/memorandum to Trade Secretary Gregory Domingo dated February 25, 2013.
 
It also said the CITC, which replaced the National Cottage Industries Development Authority (Nacida), has become redundant since its major function is now being handled by the Technical Education and Skills Development Authority (TESDA) and the Technology Resource Center. Product research, which was also one of CITC's mandates, is now conducted by the Department of Science and Technology.

COA said the CITC management should coordinate with GCG and DTI to determine how to resolve personnel displacement and the administration of the agency’s remaining assets.
 
It also stressed that any employee who opts for retirement or separation shall be given full compensation while those who would choose to remain in government service may be transferred to other offices of the government without loss of salary level and benefits for lengthy employment. — KBK, GMA News