As the Commission on Audit expressed doubts over the Philippine International Trading Corporation’s viability as it flagged a further decline in the state firm’s income from international trading in 2021 and 2022, the PITC assured the COA that new initiatives were in place to improve the corporation's circumstances.
COA presented a table to compare the income generated by the PITC for years 2021 and 2022, and it showed a 33% decline in earnings from international trading. “[A]s presented in the previous years, information and analysis [show] that PITC’s income is largely derived from its government outsourcing rather than its mandate of international trading and counter trading,” the audit report stated.
It cited the Conceptual Framework for Financial Reporting which states that “financial statements are normally prepared on the assumption that an entity is a going concern and will continue operation for the foreseeable future.” The PITC was also told to intensify efforts to coordinate with various government agencies on the possible countertrade arrangements of their respective importation or procurement of foreign capital goods, equipment, machinery, products, goods and services.