THE Commission on Audit (COA) has ordered the Department of Tourism (DOT) to pay the claim of British Broadcasting Corp. (BBC) Global News Limited for the unpaid balance of advertising services based on a $1.5 million contract signed by former Tourism Secretary Wanda Tulfo-Teo in 2017.
In an 11-page decision by the COA en banc, partly granted the petition of BBC Global News but only in the sum of $299,724, or less than half of the $600,000 being claimed.
The COA said the reduction of the payable amount was due to the lack of proof that the advertising spots on BBC.com were provided or delivered although the rest of the commitments were fulfilled.
Records showed the DOT Bids and Awards Committee (BAC) issued a resolution dated October 23, 2017 recommending that the DOT secretary approve the procurement of the advertising services of BBC Global News and BBC Worldwide through the alternative method of direct contracting.
The same resolution provided that the cost of the ads services will be $1.5 million or its peso equivalent and will cover 2,163 advertising spots on various platforms, specifically BBC Earth Asia, BBC World News-APAC (Asia Pacific), Europe, and North America, and BBC.com.
State auditors, however, said the spots on BBC.com worth $300,276 were not delivered “as DOT did not deliver suitable digital banners.”
The budget for the said placements was reportedly shifted to TV spots, but the COA noted that there was no variation order issued contrary to Section 14 of the Advertising Sales Agreement on Notices which provides that, “All notices and any other communications given under this Agreement shall be in writing and shall be given by personal delivery, first class post or airmail or facsimile, but not by email.”
Deducting the cost of the BBC.com ads spots, auditors computed the total contract at $1,199,274.
Since the first payment of $450,000 was made on February 13, 2018, and the second one for $450,000 on May 4, 2018, the remaining amount due was only $299,724.
COA chairperson Gamaliel Cordoba and Commissioners Roland Café Pondoc and Mario Lipana noted that Item 4.2 of the Advertising Sales Agreement stated that the DOT is entitled to “an appropriate pro-rata rebate of the total cost based on Spot Details and Online Benefits actually delivered” in the event of any deficiency in the advertising service.
“Thus, this Commission gives due consideration to the claim in the interest of equity and substantial justice. The DOT cannot evade payment and unjustly enrich itself, especially that it admitted that petitioner can still be paid even without such certificate of completion as long as it is shown that the amount being claimed is the reasonable value of its unpaid services,” the COA en banc ruled.
