P60M for DOT ads on Ben Tulfo's show above board, PTV says

MANILA, Philippines — State-run People's Television Network, Inc. has disputed reports that payments made to broadcaster Ben Tulfo's media outfit to carry Department of Tourism advertisements were not supported by the required documents.

In a statement released late Saturday, PTNI clarified that the payments were supported by complete documents required by Commission on Audit Circular No. 2012-001, 
or the requirements for common government transactions.

PTNI said the following supporting documents for payments made to Tulfo for carrying ads for the government department headed by his sister Wanda Corazon Teo had been submitted to the COA:

• Contract between PTV and blocktimer Bitag Media Unlimited, Incorporated
• Certificate of Performance
• Duly approved Budget Utilization Request
• and Statement detailing the deliverables

PTNI made the statement after the Commission on Audit questioned the network's 2017 disbursement records showing three checks were issued to Tulfo's media outfit  worth P60,009,560. 

PTNI said all other issues and matters in the media reports on COA's audit report have already been adreesed and clarified with the commission at an exit conference between COA and PTNI. At exit conferences, auditors submit their findings, which agencies are given an opportunity to address.

"Such reports attempt to undermine PTV's integrity, when in truth, the network, since the beginning of this administration, has been regularly operating and performing its mandate as the flagship television network of the Republic of the Philippines in delivering unbiased and quality information to the Filipino people," PTNI said of reports based on findings of a constitutional commission created to check government spending.

Under the Code of Conduct and Ethical Standards for Public Officials and Employees, those in public service "shall not dispense or extend undue favors on account of their office to their relatives whether by consanguinity or affinity except with respect to appointments of such relatives to positions considered strictly confidential or as members of their personal staff whose terms are coterminous with theirs."

COA report on People's Television Network

Based on the COA's annual audit report on PTNI, the network and the DOT entered into a Memorandum of Agreement for the latter's purchase of advertisement airtime with daily magazine news-type program Kilos Pronto.

Kilos Pronto is run by Ben Tulfo's Bitag Media Unlimited Inc., which is a blocktimer on PTV-4. The program is co-hosted by Ben, his brother Erwin Tulfo and Alex Santos.

Under the MOA, the PTNI will air a six-minute DOT advertisement segment and a three-minute DOT spot on Kilos Pronto.

The COA said three checks totaling P 60,009,560 were processed and released by PTNI to BMUI on May 11, November 8 and December 15, 2017, representing the payments for the DOT's advertising placements.

The COA said the payments were released even without the necessary supporting documents such as a MOA/Contract between the PTNI and BMUI, Certificate of Performance, duly approved Budget Utilization Request (BUR) and Billing Statement detailing the deliverables.

"Interview with the Accounting personnel revealed that there was no Memorandum of Agreement (MOA) or contract by and between PTNI and Blocktimer BMUI relative to the airing of DOT commercial advertisements in said program," the COA report read.

"Since there was no MOA wherein the terms and conditions of the agreement are supposed to be spelled out, there was also no basis for the computations on how the said three payments were arrived at," it added.

The COA said the release of payments to BMUI without the required supporting documents was in violation of Presidential Decree 1445 or the Government Auditing Code and COA Circular No. 2012-001 which enumerates the required documents for government transactions.

State auditors pointed out that while there was a MOA between the PTNI and the DOT, it does not contain a provision on specific airtime rates per segment or per spot "and such other terms and conditions of the commercial advertisement specifically as regards the manner of payment."

The audit body said that with the absence of a formal MOA or contract with the BMUI, as well as the lack of Certificate of Performance that determines the actual airing time or frequency of the airing of the DOT segment and spot, “the accuracy, legality and validity of the payments made to Blocktimer BMUI in the amount of P60,009,560.00 could not be ascertained.”

Furthermore, the audit body also noted that there was no provision in the DOT- PTNI MOA that allows the latter to serve as the collecting agency for Kilos Pronto, and yet, the PTNI still collected the payments from the DOT and released the same to BMUI.

"Review of the MOA between DOT and PTNI showed that there was no provisions requiring PTNI to remit to Blocktimer BMUI collections from DOT for the segments/spots aired within the program, Kilos Pronto," the COA report read.

The COA said the audit team made a verbal request with PNTI's Finance and Airtime Management/Programming Division for a copy of its MOA with BMUI but the audit team was informed that it is still "under review by the Legal Unit."