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FINANCE Secretary Carlos Dominguez 3rd has asked the Department of Commerce and Industry (DTI) to return to the Treasury Office (BTr) the interest earned by Philippine International Trading Corp. (PITC) of P32.6 billion in funds to help to increase the government’s response to coronavirus disease 2019 (Covid-19) and disaster relief efforts.
In his letter to Commerce Secretary Ramón López, Domínguez said that the PITC earned for 1.15 billion of the funds he has held in trust as of 2019 were recorded as interest income of the state company, when they should have been forwarded. to the National Treasury.
He said PITC’s interest earnings come from cash and investment balances transferred by various national government agencies to PITC for the acquisition of various requirements.
These fund balances, which are considered PITC fiduciary liabilities, amount to P33.3 billion and P32.6 billion at the end of 2019 and October 31, 2020, respectively.
“After our discussion, we would like to request the return to the Treasury Office by the PITC, the interest accrued on said funds held in trust. From 2018 to 2019, the interests accrued by these funds totaled P1,151 billion, ”Domínguez said in his letter to López.
The CFO also cited a 2019 report from the Audit Commission (COA), which found that PITC recorded its interest earnings “adding P581,135 million as of December 31, 2019”, as corporation income, “in instead of remitting the same with the National Treasury ”.
The COA said this practice “is not in accordance with Presidential Decree 1445 and Circular 01-2017 of the Department of Finance,” referring to the Philippine Government Auditing Code and the amended DoF guidelines on authorized government depository banks, respectively. .
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