“It’s More Fun in the Philippines” says the old tourism ad campaign but few people at the Tourism Promotions Board (TPB) would have reason to grin after the Commission on Audit (COA) ordered it to pay a marketing contractor’s P132-million claim for unpaid work.
In an en banc decision released last week, COA granted the petition of Dentsu Philippines Inc., the firm that won the contract to develop and promote the country’s brand campaign for “It’s More Fun in the Philippines” in 2015.
The commission ordered the TPB for pay Dentsu Philippines the arbitral tribunal’s final award of about P102.3 million and to return the performance bond it posted amounting to P29.99 million.
The TPB is under pressure to release the payment since the amount is earning 6 percent legal interest per year reckoned from July 30, 2020.
Records showed the TPB conducted a public bidding for the P600 million tourism brand campaign in 2014, which was won by Dentsu Philippines, resulting in a notice of award dated Jan. 19, 2015.
In its claim filed with COA, the contractor said it performed its obligations under the contract but TPB refused to issue a certificate of completion/certificate of final acceptance and to release its performance bond.
Seeking to compel payment for its services, Dentsu Philippines instituted arbitration proceedings before the arbitral tribunal, which it won. Likewise, its petition to confirm the domestic arbitral award filed with the Makati City Regional Trial Court was granted on May 17, 2022
“In the final award by the arbitral tribunal as confirmed by the RTC-Makati, Branch 148, the claim of Dentsu was already ruled upon on the merits and has already become final. Under the doctrine of finality or immutability of judgment, a decision that has acquired finality becomes immutable and unalterable, and may no longer be modified in any respect,” the COA said.
However, noting that the non-payment of the contract resulted in a bigger cost for the government, the COA en banc said the audit records of the TPB and Dentsu transaction would be turned over to the Office of the Ombudsman for review.
“This Commission finds that this case should be forwarded to the Office of the Ombudsman for proper investigation and filing of appropriate action against the then chief executive officer and other persons liable or involved in the contract at that time, for causing significant financial loss to the government,” the COA said.
