Two Teos on TIEZA Board not necessarily a conflict of interest

MANILA, Philippines — After an advertisement deal involving the state-run TV network, the Department of Tourism, and her brother's outfit hit the news, another family connection has raised questions about Tourism Secretary Wanda Tulfo-Teo.

READ: COA questions People's Television Network on ad payments to Ben Tulfo's media outfit

On its website, Tourism Infrastructure and Enterprise Zone Authority lists Roberto Teo, the secretary's husband, as a member of its board of directors. The Tourism secretary herself serves as chair while Roberto represents Travel and Tours Enterprises.

Aside from being a board director member, Roberto is also a member of all six TIEZA committees: audit, infrastructure, finance, human resource, tourism enterprise zone and governance.

TIEZA, formerly known as the Philippine Tourism Agency is attached to the Department of Tourism. It "acts as DOT’s implementing arm in providing support infrastructure and facilitating investments in tourism enterprise zones nationwide."

Did Teo couple violate law on nepotism?

That husband and wife are on the same board raised questions from critics and social media users, who said this is a case of conflict of interest and nepotism.

the Teo-Tulfo family business in government continues via nepotism at the DOT. Teo's husband is all over the DOT.

must be one of the most profitable family business in government pic.twitter.com/mj54W8sH8v

— WhatAWasteofAdMoney (@wawam) May 3, 2018

Nepotism is defined by the Business Dictionary as the “practice of appointing relatives and friends in one's organization to positions for which outsiders might be better qualified.” However, a lawyer and expert on administrative law and on the law on public officers, told Philstar.com said this cannot be applicable in this case.

A section of Executive Order No. 292, or the order Instituting the Administrative Code of 1987, signed by President Corazon Aquino, prohibits nepotic appointments or those made in favor of a relative of the appointing or recommending authority or of the chief of bureau or office, or of the persons exercising immediate supervision over the appointee.

Section 79 of the Local Government Code of 1992 also prohibits the appointment or recommendation of the authority’s relatives within the fourth degree of consanguinity or affinity, such as first cousin or first cousin-in-law (4th degree).

Although Roberto and Wanda are related by affinity, he was appointed by to TIEZA by President Benigno Aquino III on Feb. 14, 2014. He is on the board in a holdover capacity.

Duterte also appointed Roberto as a board member of a subsidiary of Land Bank of the Philippines, the LBP Leasing and Finance Corp on June 2, 2017.

Roberto used to be the chief of the Investments Promotions Center of Davao City, where the president served as the mayor for more than two decades.

‘No conflict of interest in Teo couple’s case’

On Wednesday, the Tourism secretary reportedly acknowledged that her husband is a TIEZA director.

This earned the couple criticism as some saw Secretary Teo's role as TIEZA chair as conflict of interest.

Lawyers consulted by Philstar.com, however said, there is no violation or conflict of interest just because the Teos are a married couple.

Conflict of interest would only happen if one of them uses personal influence in corporate decisions. This was also cited in Republic Act 6713, or the "Code of Conduct and Ethical Standards for Public Officials and Employees."

“’Conflict of interest’ arises when a public official or employee is a member of a board, an officer, or a substantial stockholder of a private corporation or owner or has a substantial interest in a business, and the interest of such corporation or business, or his rights or duties therein, may be opposed to or affected by the faithful performance of official duty,” the law reads.

The lawyer said that Republic Act 3019, or the Anti-Graft and Corrupt Practices Act, may also apply in the couple’s case but it would depend on what Roberto’s business interests are.

Section 3 (h) of the anti-graft law states that one violates the law if  they “directly or indirectly have financing or pecuniary interest in any business, contract or transaction in connection with which he intervenes or takes part in his official capacity, or in which he is prohibited by the constitution or by any law from having any interest."

Article VII of the 1987 Constitution, which specifies the roles of officials in the executive department states that members of the Cabinet shall not hold any other office or employment during their tenure nor practice conflict of interest.

"They shall not, during said tenure, directly or indirectly, practice any other profession, participate in any business, or be financially interested in any contract with, or in any franchise, or special privilege granted by the Government or any subdivision, agency, or instrumentality thereof, including government-owned or controlled corporations or their subsidiaries," Section 13 reads.

"They shall strictly avoid conflict of interest in the conduct of their office," it adds.

Wanda divested from travel agency business

According to Secretary Teo's curriculum vitae, she used to be a president of Mt. Apo Travel and Tours Inc., a travel agency in Davao City.

In June 2016, however, Wanda announced that she had already divested from the travel agency business to avoid conflict of interest once she becomes Tourism secretary. She was the president of the travel agency from 1994 to May 2016.

The Philippine Travel Agencies Association website lists the couples' children, Raissa Wynne and Robert Wren, as the agency's representatives at the association. 

The lawyers Philstar.com consulted said the Teo couple would only be held liable if there is a questioned transaction involving both of them.

They said that public officials should heed the 1987 Constitution's declaration that public office is a public trust.  

"Public officers and employees must at all times be accountable to the people, serve them with utmost responsibility, integrity, loyalty, and efficiency, act with patriotism and justice, and lead modest lives," the country's basic law reads.

Teo and her family have been in the news since the weekend over a Commission on Audit report questioning state-run People's Television Network Inc.'s payment of P60 million to brother Ben Tulfo's Bitag Media Unlimited Inc. to air Department of Tourism ads on its show "Kilos Pronto". 

Teo and her brother have said that they dealt with PTV-4 separately and the secretary has said she had nothing to do with the ads ending up on a block-timer show hosted by her brothers.

Teo's lawyer, Ferdinand Topacio, in a television interview on Thursday morning said the deal had been vetted by a committee and that his client did not pick "Kilos Pronto" herself. He allowed, however, that "the optics may not be good."

READ: PTV-4 proposed tourism ad placements on Tulfo brother’s show, letter reveals