Ombudsman sees no graft in P120-M DOT-PTV ad deal

Former Tourism Secretary Wanda Teo, Bitag Media Unlimited Inc. CEO and founder Ben Tulfo and show co-host Erwin Tulfo face senators during a Blue Ribbon hearing on the P120-million DOT ad controversy.

MANILA, Philippines (Updated 2:46 p.m.) — The Office of the Ombudsman junked a graft complaint against former Tourism Secretary Wanda Teo, her brother Ben Tulfo, and officials of state-run People’s Television Network Inc. (PTNI) over a P120-million advertisement deal flagged by state auditors for “possible conflict of interest.”

The Ombudsman ruled that there was no probable cause to pursue the complaint against Teo, Tulfo and top PTV officials.

In 2018, the Field Investigation Office of the Ombudsman (FIO), complainants in the case, looked into the deal between PTNI and Tulfo's company because of a lack of supporting documents.

This was after the Commission on Audit in its 2017 report said 75% (P89.9 million) of the P120 million advertisement agreement between the Department of Tourism and PTV was paid to “Kilos Pronto,” a crime and public service TV program under Bitag Media Unlimited Inc.—which was produced by Teo’s brothers.

The FIO, in its complaint, alleged that Teo, her brother Tulfo, PTV4 General Manager Dino Apolinario, and three more conspired to favor Bitag Media.

“The acts of DOT and PTV officials were geared to a common goal to favor Bitag Media to advertise DOT tourism ads and eventually got almost 75% of the P120 Million Pesos branding the projects of the DOT,” the resolution read in part.

The FIO also said “they indirectly made it possible by entering into an agreement with PTV and outrightly named Kilos Pronto as the one to broadcast DOTs TV commercials in the agreement.”

Teo, in her defense, said she did not know that her own brother owned or controlled Kilos Pronto. She added that while they are siblings, they rarely talk or see each other.

But the Ombudsman moved to dismiss the case due to lack of probable cause.

“Records show that the DOT Secretary Teo was not in anyway privy to the contract entered into between PTV/PTNI and BMUI (Bitag) relative to the DOT tourism promotional advertisement,” the Ombudsman said. 

It also pointed out that the idea that DOT should partner with PTV/PTNI came from Communications Secretary Martin Andanar in January 2017. After this, the PCOO chief wrote to Teo to express desire for partnership.

Representatives of PTV/PTNI and DOT then discussed the partnership. A presentation was later done before the Bids and Awards Committee.

“As can be gleaned from these antecedent facts, it is clear that then Secretary Teo’s participation and involvement in the questioned transaction is limited only insofar as DOT and PTV/PTNI are concerned,” it added.

“There is no conspiracy. In the eyes of the law, conspiracy exists when two or more persons come to an agreement concerning the commission of a crime and decide to commit it. The overt act or acts of the accused may consist of active participation in the actual commission of the crime itself or may consist of moral assistance to his co-conspirators by moving them to execute or implement the criminal plan,” the resolution further read.

“In the absence of proof that the findings of [the Commission on Audit] in its [audit observation memorandum] have gained finality, the filing of the instant case borders on prematurity amounting to lack of cause of action,” it added. — with reports from Xave Gregorio and Ian Nicolas Cigaral

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