Business

COA questions DOT’s P271M payment to McCann for tourism ads

Payments to this global advertising firm went against the rules.

Payments to this global advertising firm went against the rules.

The Commission on Audit (COA) flagged another contract entered into by the Department of Tourism (DOT) under ex-Secretary Wanda Tulfo-Teo.

In its 2017 audit report, the COA said payments to McCann Worldgroup Philippines, Inc. for the DOT’s Philippine Experience Campaign did not follow protocol and lacked supporting documents before releasing payment tranches.

McCann, a leading ad agency, bagged a P649.5-million contract from DOT. Of the amount, P271.7 million was released without the necessary documents, COA said.

“The non-submission of the said documents precludes the verification of the regularity of the payments made, particularly the determination of whether or not the services were satisfactorily rendered by the media and advertising agency in accordance with the provisions of the TOR (terms of reference) and/or deliverables of the contract,” the auditors said.

The DOT released payments based on billing statements filed by McCann, contrary to a payment scheme on the contract which provided a schedule for the release of funds.

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