DOT announced 'Strongest Man' hosting months before deal was sealed

MANILA, Philippines — A potentially overpriced project of the Department of Tourism seemed like a done deal even before the contract for it was signed.

Online news site Politiko on Tuesday published a report alleging that Wanda Tulfo-Teo, who resigned as Tourism secretary over a controversial ad deal involving her brother's media company, signed a $2-million (P105-million) contract to host the World’s Strongest Man competition in the country from April 28 to May 6.

The news outlet said that it “learned the value of the contract Teo signed with Minimax Advertising and Production Corp., the Philippine representative of WSM’s producer, IMG Productions LLC, was double the proposed $1-million (P52.7 million) budget for the event.”

'Sports event deal did not undergo public bidding'

It added that the supposed overpriced contact did not undergo public bidding.

IMG Productions is the same firm that acquired Miss Universe Organization from Donald Trump in 2015.

“Whereas, in line with the procedure on Direct Contracting, IMG, as presented by MINIMAX, was invited to submit its proposal and other supporting documents and was determined to be legally, technically and financially capable of undertaking the project,” the contract obtained by Politiko read.

“NOW, THEREFORE, foregoing premises considered, the DOT-BAC, hereby RECOMMENDS the procurement of the right to host and hold the 2018 World's Strongest Man Competition, through the alternative method of direct contracting, from IMG Productions, LLC represented by its sole and exclusive agent in the Philippines, Minimax Advertising and Production Corp. pursuant to Section 50 of the revised IRR of R.A. No. 9184, in the amount of Two Million US Dollars (US$2,000,000.00) or its equivalent in Philippine Pesos,” it added.

The contract was signed by Teo and Undersecretary Katherine De Castro, who chairs the DOT-Bids and Awards Committee. Assistant Secretary Maria Lourdes Japson, and Assistant Secretaries Eden Josephine David and Arlene Mancao also signed as vice chair and members of the BAC.

Announcement made before deal sealed

The report also showed that the contract was signed April 13, just days before the Commission on Audit issued a report questioning the DOT’s multimillion-peso advertisement deal with state-run People's Television Network Inc. and brother Ben Tulfo's Bitag Media Unlimited Inc.

On February 3, two months before the contract was finalized, the organizers of the World’s Strongest Man contest announced that the 2018 edition of the sports event will be held in Manila. It said the qualifiers were scheduled from April 28 to May 1 and the finals were slated May 5 to 6.

The DOT, on the other hand, officially announced the hosting of the 41st World’s Strongest Man competition during the press conference of the 22nd Philippine International Hot Air Balloon Fiesta on February 7.

"The 41st World's Strongest Man will push the Department’s thrust for more sports and adventure tourism for 2018," Teo said in a February 7 release.

Teo said then that the major events for the World’s Strongest Man would be open to the public for free.

The DOT also said the World’s Strongest Man is shown on CBS Worldwide, a network that reaches 470 million in 170 countries.  

Philstar.com sought comment from the DOT and Minimax but neither party has responded as of this post.

Teo resigned in May amid the controversy involving funds the DOT paid PTV-4 and were later remitted to Tulfo's Bitag Media Unlimited Inc., a transaction that the Commission on Audit said was not backed by the proper documentation.

The Tulfo siblings had variously claimed that the publicly available COA report had been leaked by a Tourism undersecretary who wanted to take over the Tourism department or was an attempt to discredit broadcaster Erwin Tulfo, a host on BMUI-produced "Kilos Pronto" and who had been ranked in a survey of potential senatorial candidates. 

 Teo was replaced by Bernadette Romulo-Puyat who vowed that all transactions in the tourism agency would go through proper bidding.

 “I will be careful…Public office sets public trust, and that’s public money,” Puyat said.

Puyat also asked the COA to conduct review on the projects of DOT and ensure that all abide the law. — Rosette Adel