Recto urges PITC to waive service fee in purchase of COVID-19 vaccines

The government-owned Philippine International Trading Corporation (PITC) should waive its service fee if it is designated as the buyer of COVID-19 vaccines in the country, Senate President Pro Tempore Ralph Recto said Wednesday.

The PITC, an attached agency of the Department of Trade and Industry, charges a commission of 4% for projects with a total contract price (TCP) of P25 million and below, and 1% for projects with a TCP of P700 million and above, the senator explained.

"'It could potentially earn hundreds of millions in commission for what is essentially an easy 'pasabuy' gig," Recto said.

"This is not the time to reap a pandemic windfall. When private corporations are waiving fees and writing off interests, a state agency should avoid being accused of disaster profiteering," he added.

Trade Secretary Ramon Lopez reportedly said the PITC has been tapped to facilitate the purchase of the vaccines. 

The savings that the government will get if the PITC waives its service fee could instead be used to purchase personal protective equipment for health workers and provide modules for learners, according to Recto.

He expressed confidence that the PITC will concur with this proposal as four Cabinet members are also part of the state corporation's 11-person Board, referring to the secretaries of Trade, Environment, Agriculture, and Socioeconomic Planning.

The "no commission" rule can be written as a Special Provision in the General Appropriations Act for 2021 which he said would surely be approved by Congress and has zero risk of being vetoed by the President, he added. — BM, GMA News