DTI’s Lopez: PITC needs to charge at least 1% for gov’t purchase of COVID-19 vaccines

The Philippine International Trading Corporation (PITC) cannot waive its service fee in the government's purchase of COVID-19 vaccines, the Department of Trade and Industry (DTI) said Wednesday.

Citing information from Trade Secretary Ramon Lopez who also chairs the PITC, Senator Sonny Angara said the government corporation has been tapped to be the purchasing arm of the state for COVID-19 vaccines that will be bought through loans, the amount of which is tentatively pegged at P20 billion.

The state trading enterprise attached to the DTI can just lower its service fee to 1% for this particular transaction.

"The Secretary said they need to recover some of the actual cost so they go as low as 1%," said Angara in sponsoring DTI's proposed P22.012-billion budget for 2021.

"Wala talagang budget daw talaga ang PITC, that's how they finance their operation," he added.

Senate President Pro Tempore Ralph Recto earlier urged the PITC to waive its service fee. He previously explained that the corporation 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.

Recto also expressed misgivings about the ability of PITC to deliver the vaccines on time given its previous track record.

Angara, meanwhile, said facilitating the COVID-19 vaccine procurement still falls within the mandate of PITC.

"Without making a judgement as to its efficacy or effectivity or efficiency, it really engages in trade and trade-related businesses in support of the government. I'm happy that the gentleman has made known the actual experience with respect to the PITC but that is their mandate as a procuring agency," he said.

Aside from possible loans, the Senate Finance Committee also earmarked P18 billion for COVID-19 vaccines in the proposed P4.5 trillion national budget for 2021. Of the said amount, P8 billion would be under regular appropriations while the rest will be lodged under unprogrammed funds. — RSJ, GMA News