DoT returns unused P1.52 billion — CoA report
THE DEPARTMENT of Tourism (DoT) has reverted P1.52 billion to the Bureau of Treasury (BTr) as it did not fully utilize its 2016 budget, the Commission on Audit (CoA) said in a report.
The state audit agency said various programmed branding projects were obligated but remained unimplemented as of Dec. 31, 2016. This led to the lapsing and reversion to the BTr of P1.52 billion in cash allocations or 41.55% of DoT’s P3.66-billion budget last year.
“Verification of the actual cash utilization showed that the DoTOSEC ( Office of the Secretary) and its Regional Offices received total NCAs ( Notices of Cash Allocations) of P3,663,522,122 for CY 2016 for the payments of salaries and wages, personnel benefits, operating expenses and programs/ projects. Of this amount, P2,141,489,680.18 was utilized/ disbursed while P1,522,032,441.82 or 41.55 percent had lapsed and reverted to the National Treasury,” the CoA said in the DoT’s annual audit report released on Wednesday, June 28.
State auditors also said that several projects were obligated only in December 2016, thus they were not implemented last year.
“The reported obligations aggregating P872,468,181.69, or 27.27% of the total allotment were for payments and fund transfers for projects and activities still to be undertaken in 2017,” the report read.
One of the obligated contracts entered in December 2016 was the controversial “Philippine Experience Campaign” of McCann Worldgroup Philippines, Inc. worth P649.48 million.
McCann was accused of plagiarizing a South African tourism ad after the launching of the “Sights” promotional video of the Tourism department. The DoT already cut ties with the McCann following the controversy.
Other advertising campaign deals made in December 2016 were contracts with Cable News Network ( CNN) worth P49.8 million, Discovery Network Asia Pacific worth P100 million, British Broadcasting Center worth P54.868 million; and DoT-foreign exchange accommodations worth P18.32 million.