COA flags P50-M ads deal of GSIS with PTV-4

MANILA, Philippines — The Commission on Audit has flagged another advertisement deal entered with state-run People’s Television Network Inc. (PTNI) or PTV-4, this time by the Government Service Insurance System.

“The payment through exchange deal arrangement for media services with People’s Television Network Inc. in CY 2017 totaling to P50.155 million did not add value to GSIS members, non-responsive to the exigencies of the GSIS mandate, and can be dispensed with without loss or damage to the System, hence, considered unnecessary,” the COA said in its 2017 audit report posted on its website Saturday.

Just last week, the COA in another audit report, also noted the irregularities in the P120-million advertisement deal that the Department of Tourism entered with PTNI in 2017 under then Tourism Secretary Wanda Tulfo-Teo. A total P89.878 million or 75 percent of the contract cost was allocated to Bitag Media Unlimited Inc., a media outfit owned by Teo's brother Ben Tulfo, hence the COA said both Teo and Tulfo may be held liable of graft for “conflict of interest.”

In its audit report on the GSIS, the COA said it was 2015, under the Aquino administration, when the state pension firm entered into a Memorandum of Agreement with PTNI to cover P47.02-million worth of unremitted premium and loan payments deducted from the salaries of the PTNI employees.

In exchange for the payment of the unremitted contributions, it was agreed in the MOA that PTNI would provide media services to GSIS, particularly the airing of five-second and 30-second infomercials and coverage of GSIS' special events.

“The cost of media services for CY 2016 and 2017 amounted to P30.782 million and P19.373 million, respectively, or a total of P50.155 million, thus, exhausting the balance covered by the MOA,” the COA said.

The audit body said that while there were no actual cash outlays on the part of the GSIS, the services rendered were charged against the receivable account “which could just have been collected and added” to GSIS' reserves.

The COA said that aside from PTV-4's poor signal reception in Metro Manila and remote areas in the provinces, the additional media exposure was also unnecessary considering that “GSIS required no introduction since it has been in existence years ago and membership to the GSIS is compulsory for all government employees receiving compensation.”

“We reiterated our recommendations, and (GSIS) Management agreed to limit infomercials to those that add value to GSIS members...We further recommend that Management require PTNI to pay the premiums and loan amortizations equivalent to the exchange deal arrangement,” the COA said.

Uncollected receivables

Meanwhile, in the same audit report, the COA directed the GSIS to collect billions of pesos worth of receivables due from government agencies and private companies which remain outstanding for several years.

The COA said the GSIS' loans to several private companies with total principal balance of P2.119 billion and accrued interest of P823.153 million remain uncollected for 20 years or more “due to the absence of concrete action plan to recover the same,” thereby, may result to the “loss or wastage of government funds.”

The audit body said there was also a total of P26.422 billion receivables due from the Department of Budget and Management and other government agencies “which remaind uncollected for several years."

The COA said the uncollected receivables include interest for the unpaid and/or delayed remittances of social insurance premiums and housing loan amortization (P20.839 billion); surcharges for late payments of past due loans and premiums ( P5.159 billion); contributions/premiums receivable (P390.475 million); interest receivable on advances to other funds (P19 million) and surcharge receivable on premiums (P13.346 million).

“We recommended that Management assess the condition and collectability of the receivables and properly recognize the extent of impairment on the account; negotiate and collect from the counter-parties to recover the cash outflows; and revisit the policy on the non-performing loans and premiums receivable,” the COA said. — Elizabeth Marcelo