CoA flags PNP over weapons procurement

State auditors have called out the Philippine National Police (PNP) for failing to recover P145.8 million transferred to a government trading firm for rifles that have remained undelivered for nearly a decade.

In its 2024 audit report, the Commission on Audit (CoA) revealed that the PNP transferred the funds to the Philippine International Trading Corp. (PITC) on 28 April 2016. The money was intended for the procurement of 114 brand-new 7.62 mm rifles.

Auditors said the long-standing balance violates the General Appropriations Act, which requires that unused or unexpended funds be returned to the National Treasury at the end of the year.

“This warrants the remittance to the BTr (Bureau of the Treasury) or reversion to the general fund as required in the general provisions of the GAA,” the report said.

The PNP’s accounting and logistics divisions told auditors they are currently seeking a refund of the money due to an ongoing contract termination.

The PITC, a state-owned corporation under the Department of Trade and Industry (DTI), serves as a procurement agent for government agencies. However, the firm has faced years of criticism from lawmakers and auditors for its track record of delayed deliveries and for holding “parked” funds from various agencies.

In 2018, the firm was flagged for delivering only 10 percent of P1.35 billion worth of equipment ordered by the PNP. By 2019, auditors noted that over P1 billion in supplies remained undelivered for more than three years, a trend CoA said “defeats the very purpose” of hiring the PITC to facilitate procurement.

The agency also faced intense scrutiny in 2020 following allegations by then-Senator Franklin Drilon that between P18 billion and P33 billion in government funds were “parked” in its accounts to avoid being reverted to the treasury.

Despite several legislative attempts in previous Congresses to abolish the PITC, no such measures have been signed into law.