COA junks money claim of Discovery Shores vs DOT

MANILA, Philippines — The Commission on Audit (COA) has advised a five-star luxury resort in Boracay to directly recover from former tourism secretary Wanda Tulfo-Teo, former undersecretary Katherine De Castro and three other former officials of the Department of Tourism (DOT) their unpaid accommodations and meals in 2018 amounting to P456,716.50.

In a decision dated May 30, 2022 but uploaded on the COA website just last week, the commission denied the petition for money claim of Discovery World Corp., which is doing business under the name Discovery Shores Boracay, against the DOT.

The claim was for P143,000 in accommodation and P313,716.50 in “meals, beverages and other services” at the resort’s Sands Restaurant, Sand Bar and Indigo Bar and Spa incurred by Teo, De Castro, former DOT assistant secretary Frederick Alegre and former executive assistants Angelito Ucol and Julius Disamburun, during their stay at Discovery Shores on various dates in February to April 2018.

Teo and the other DOT officials’ stay in the five-star luxury resort was supposedly for various meetings and site visits in connection with the previous administration’s Boracay rehabilitation efforts.

The COA said that aside from being unliquidated and unsupported with valid contract, the expenses were also considered “excessive and extravagant.”

The COA cited Executive Order No. 298 series of 2004 or the “Rules and Regulations and New Rates of Allowances for Official Local and Foreign Travels” which limits hotel/lodging fee for each government official or employee to P400 per day.

“Based on the records, the rate in Discovery Shores is P13,000 per room per night. This exceeds the P400 per day hotel/lodging fees allowed by the aforesaid EO, even assuming that the five DOT officials and employees occupied a single room,” the commission pointed out.

The COA added that the incurred costs of the meals, beverages and other services were good for 25 to 35 persons ranging from P207.00 to P48,659.70 each, even if “only three DOT personnel were authorized to travel and attend the IATF (Inter-Agency Task Force) meetings.”

The COA’s record showed that only the travels of De Castro, Alegre and Ucol were supported with travel orders.

“To grant the amount of claim which is immoderate and above the normal and reasonable rate of expenditures, despite the lack of contract and supporting documents, would run counter with this Commission’s mandate to prevent excessive and extravagant expenditures,” the decision read.

The COA, however, said Discovery Shores may still have other recourse to get the payment.

“The petitioner, nonetheless, is not left without recourse. The claimant may recover directly from RD (Regional Director) [Helen] Catalbas and/or the DOT personnel who benefited from its services,” the COA said.

The COA said the matter may also be brought to a proper court.

“Being unliquidated claims, these expenses are beyond the jurisdiction of this Commission, but within the power of the courts to adjudicate. Unless a competent court determines the value of these claims, this Commission considers them as unliquidated claims,” the COA said.

The COA’s record showed that it was DOT Region VI director Catalbas who billeted Teo, De Castro and the three other then DOT officials at Discovery Shores, supposedly upon the authority given by the office of Alegre.

The COA, however, noted that Alegre’s letter of authority stated that the expenses to be incurred shall be charged against the funds of the Office of the Secretary “in accordance with existing government, accounting and auditing rules and regulations.”