Senate Minority Leader Koko Pimentel III called for reforms at the Center for International Trade Expositions and Missions (CITEM), after raising concerns over several operational issues within the export agency, including high costs for exhibitors and a long-term lease agreement he described as “grossly disadvantageous” to the government.
In a resolution, Pimentel cited the agency’s 50-year lease of a prime 4.9-hectare lot to the Philippine Exporters Confederation Inc. (Philexport) for only P1,000 per year as a “grossly disadvantageous” deal.
The long-term lease contract was entered into or authorized by the DTI Secretary Rizalino Navarro on January 23, 1996. It is for a period of 50 years, renewable for another 25 years at the option of the lessee, Philexport, the resolution states.
CITEM is a government-owned or controlled corporation that has mandated to develop, nurture, and promote micro, small and medium enterprises, brands, designers, and manufacturers.
“CITEM is the owner of a prime lot with an area of 4.9 hectares from which it is not earning reasonable revenues which should and could have been used for its operation.”
“CITEM is the owner of a prime lot with an area of 4.9 hectares from which it is not earning reasonable revenues which should and could have been used for its operation,” the veteran legislator said in his resolution.
The seasoned lawmaker also raised concerns over CITEM’s practice of passing at least 80% of its exhibition costs onto exhibitors in the form of participation fees, which has made it difficult for many small businesses to participate in overseas trade shows.
“Ang napakalaking gastusin sa pagsali pa sa exhibits at expositions na inoorganisa ng CITEM ang malaking balakid para sa mga maliliit na mamumuhunang Pilipino.”
“Ang napakalaking gastusin sa pagsali pa sa exhibits at expositions na inoorganisa ng CITEM ang malaking balakid para sa mga maliliit na mamumuhunang Pilipino na may maayos, de kalidad at world-class na produkto,” the seasoned lawmaker said.
Under the 2024 national budget, CITEM is allotted a government subsidy amounting P195.6 million, the senator noted.
As of today, CITEM, however, promotes Philippine products to only six countries such as Germany, France, Japan, Malaysia, United Arab Emirates, and China, covering only two product sectors, namely home and fashion, and processed food.
“CITEM seems to be encountering a lot of issues and challenges preventing it from fully functioning and fulfilling its mandates,” he said in the resolution.
Pimentel also saw a duplication of functions as there are other agencies that conduct their own promotional events abroad such as the Department of Trade and Industry, Department of Agriculture and Department of Science and Technology.
He further pointed out that CITEM only promotes Philippine products in six countries–Germany, France, Japan, Malaysia, the UAE, and China–and focuses solely on home, fashion, and food products, leaving other sectors unrepresented.
Additional challenges include structural issues in CITEM’s building, which the Department of Public Works and Highway has declared “structurally precarious”.
