LOCAL steelmakers are asking the national level of the Department of Trade and Industry (DTI) to take over the monitoring of mandatory products to intensify the fight against substandard products.
In an earlier interview with the BusinessMirror, Philippine Iron and Steel Institute (Pisi) President Roberto M. Cola said the DTI should once again take over the monitoring on the regional level of mandatory products. He argued this will ensure the monitoring is objective and in accordance with standards, unlike under the existing setup.
Cola said the setup now allows retailers to know when the regional officers of the DTI are about to conduct a monitoring, as they allegedly have links with some trade executives in their provinces; thus, giving them time to hide their substandard products.
“The setup now is that the provincial offices of the DTI are supposed to monitor the market. It’s not just in rebars, but in everything, from electrical items to risk hazard materials. The problem there is that those who are doing the monitoring are either friends or relatives of the owners of the hardware stores,” Cola explained.
“They know the owners since they have been in the province for a long time. It’s difficult therefore to be objective, there’s like a regulatory capture. They cannot audit and monitor without running the risk of being subjective,” he claimed.
Cola recalled how successful the former system was. The policy then was for the national officers of the DTI, along with industry groups, to go to provinces to do unannounced inspection of retail stores.
“Before, the setup was that the DTI head office, through the Bureau of Product Standards, goes around the country to monitor. The advantage back then is that the stores in the regions do not know that there will be a team doing rounds in their area. At that time as well, the DTI had a partnership with the industry groups on steel, cement, electrical items, batteries and even in tires,” the Pisi chief said.
Cool to proposal
Meanwhile, Cola’s proposal to return monitoring to DTI head office seems unwelcome to DTI. In an interview with the BusinessMirror, Trade Undersecretary Ruth B. Castelo said such return of powers to the DTI national level will run counter to the rationalization program of the government.
Such program in 2013 had rationalized the duties and responsibilities of trade officers, formally transferring the power to inspect hardware stores in the provinces to DTI regional offices.
“The 2013 rationalization increased the consumer protection levels of the regional and provincial offices, while decreasing that of the national office. The setup is really like that now due to the 2013 rationalization,” Castelo explained.
“Now, even if we want to, our resources are limited. Even if we want to go to the regions, our resources are limited because the budget is allocated to the regional offices. We also know that there’s a consumer protection division in the area with this task to do it,” she added.
Castelo told the BusinessMirror she has called the attention of the regional offices to intensify the campaign against substandard products in line with the national office’s program.
Industry group Pisi has so far tested rebar samples from 164 hardware stores across the country this year. Of this total, nearly 38 percent, or 62 retailers, were found selling substandard rebars.
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