THE Philippine Charity Sweepstakes Office (PCSO) has implemented revisions in its procurement processes for advertising, placement, and sponsorship activities involving media proponents based on recommendations from the Commission on Audit.
In the 2021 audit report released on July 21, 2022, the PCSO informed the COA that its Corporate Planning Department (CPD) has issued a memorandum dated May 25, 2022 announcing that the PCSO Bids and Awards Committee (BAC) would now be involved in all procurement activities.
For its part, the Product and Standard Development Department (PSDD) issued Memorandum No. PSDD-2022-168 also dated May 25, 2022 citing the COA recommendation to coordinate with the BAC “in the procurement of advertising media placements” as provided under the Revised Implementing Rules and Regulations (RIRR) of RA No. 9184 or the Government Procurement Reform Act.
These moves were in response to the observations of the COA that the existing workflow of advertising placements and sponsorship activities of the PCSO was not in accordance with the guidelines and procedures set under the RIRR of RA 9184.
The guidelines required a bidding process, the involvement of the BAC, and a review of the eligibility of prospective bidders.
On the other hand, the COA Circular No. 2012-001 also provides that invitations to potential bidders should be posted on the Philippine Government Electronic Procurement System (PhilGEPS) electronic bulletin board.
However, the audit team noted that the PCSO’s Annual Procurement Plan for CY 2021 showed contracts for advertising, promotion and marketing were done through negotiated procurement.
The COA said no market research was conducted to confirm that the supplier can undertake the project or provide the service at a more advantageous term and that advertising and posting requirements were not complied with.
In its response, the PCSO management said it had been following the Manual of Operations created on December 31, 2013.
However, it agreed that there was a need to update and amend the current workflow process for the selection of media proponents for advertising, placement, and sponsorship activities to conform with the RIRR of RA No. 9184.
