Lawyer Lorenzo “Larry” Gadon has filed a criminal and administrative complaint before the Office of the Ombudsman against the chief of the Philippine International Trading Corp. for supposed failure to complete the delivery of the P1.35 billion worth of equipment procured by the Philippine National Police in 2016.
In a 76-page complaint-affidavit, Gadon charged David Almarinez, in his capacity as PICT president and chief executive officer, with malversation of public funds or property, illegal use of public funds or property, entering into prohibited transactions and violation of the Anti-Graft and Corrupt Practices Act.
PITC is the state trading arm under the Department of Trade and Industry.
Gadon wanted the Ombudsman to look into the Commission on Audit report showing that the PITC delivered only 23 percent of the equipment or only P311.97 million out of the total amount of firearms, grenade launchers and utility trucks had been deli ered by PITC.
“The low delivery rate of 23.08 percent and undelivered equipment defeats the intention to which the PNO (has) engaged the services of PITC, that is, to facilitate the procurement process,” the COA report read.
The complainant said COA advised the PNP to demand the immediate delivery of the remaining equipment or ask for a refund of all advance payments and unused balances so they could return the money to the Treasury.
He provided the Ombudsman with a letter of COA to the PITC board of directors with COA citing the results of its audit of the questionable accounts and transactions of the PITC for 2017 and 2018.
He presented memoranda of agreement entered into by PITC as procurement agent with various client-government agencies for the procurement of goods, services, including infrastructure projects which have no provision for a definite timeframe within which the parties are to perform their respective responsibilities.
According to COA, funds were transferred to the PITC despite the absence of complete documentation, specifically the terms of reference and agency outsourcing requests, thus procurements could not immediately be pursued that resulted in the accumulation of idle funds totaling P7.931 billion as of Dec. 31, 2018.
The provision in the MOA on the interest earnings of the fund transfers was contrary to Section 65 of Presidential Decree No. 1445 and Department of Finance Circular No 01-2017, thereby depriving the client-government agencies of additional resources.
COA said unexpended balances of fund transfers amounting to at least P349.419 million for various procurement projects were not returned by PITC to the SAs despite completion thereof.
Gadon urged the Ombudsman not to waste time in finding the criminal liability of the PITC chief in a bid to protect public interest.