Malacañang maintained on Tuesday that the Department of Tourism’s (DOT) P1.2-billion advertising contracts being questioned by the Commission on Audit (COA) for alleged irregularities did not require President Aquino’s approval.
“No need for Palace approval for programs included in and funded by the General Appropriations Act,” Communications Secretary Herminio B. Coloma Jr. said on Tuesday.
Asked if President Aquino had sought an explanation from the DOT about the questioned contracts involving the government’s billion-peso tourism-promotion drive, Coloma said the Palace expects DOT officials to clarify the matter.
“The DOT will respond appropriately to audit findings,” Coloma told the BusinessMirror.
COA auditors reported that no public biddings were conducted by the DOT in awarding and extending ad contracts amounting to P1.2 billion for the Aquino administration’s “It’s More Fun in the Philippines” tourism-promotion campaign.
A COA report in 2014 said that state auditors also found that the renewed ad contracts were “extended in an amount more than what was stated in the original contract” in violation of the Procurement Law, also known as Republic Act 9184.
It was also reported that the COA was disallowing P999.78 million in advertising expenses, unless the DOT and its Tourism Promotion Board (TPB) can “justify their failure” to comply with procurement rules.
“Unless fully justified by management, the renewal of advertising services contract with the advertising consultant and the extension of advertising services may not be allowed in audit,” the COA auditors said.
They pointed out that the procurement of advertising services was “not even included in the Annual Procurement Plan” of the department’s TPB constituting, the COA said, a violation of the provisions of the Procurement Law.