DOT flagged over P6.1 million ‘irregular, unnecessary’ expenses
Credit to Author: Janvic Mateo| Date: Sat, 15 Jul 2023 00:00:00 +0800
MANILA, Philippines — The Commission on Audit (COA) has flagged the Department of Tourism (DOT) over irregular, unnecessary and excessive expenses worth over P6.1 million last year.
In its 2022 audit report on the DOT, state auditors said several transactions made by the office of the secretary and several regional offices contravened or deviated from existing government rules and proper standard procedures on disbursements.
These include P1.77 million worth of giveaways and tokens worth P300 to P4,500 per kit given by the DOT Region 4-A to attendees, participants and guests at a seminar that was conducted free of charge.
The same regional office was also flagged for spending P1.73 million to hire vans ranging from P7,500 to P16,000 per day for the conduct of tourism activities when it has six available government vehicles, including three that were newly acquired last year.
In response, the DOT Region 4-A said the giveaways were provided to attract attendees to the seminar. It also explained that while it had six vehicles, they only have one driver assigned at the director’s office.
Both items were classified as unnecessary expenditures, along with payment of entrance fee for simulation tours (P312,250), payment of meals of various private groups (P188,507.66) and engaging of services of Manila-based resource speakers for training activities in the Caraga region (P230,844.92), among others.
Meanwhile, state auditors said several DOT officials received transportation allowances totaling P168,500 despite having assigned or actually using government motor transportation, considered as an irregular expense.
The DOT was also called out over the handling of the service contract for the conduct of the National Ecotourism Strategy Action Plan, which was only attended by 74 out of the original target of 110 participants.
“Despite non-attendance of 36 persons, the contractor still billed the DOT the contract amount of P962,679, contrary to the contract provision that the statement of account will be based on the actual expenses incurred. The billed expenses include accommodation, transportation, meeting venue with meals and Pinatubo tour. There was no detailed/breakdown of expenses provided,” read the COA report.
Other irregular expenses included seven procurements of meals and venue by the DOT Region 11 worth P170,329, which had a significant difference in the quantity indicated in the contract and the actual number of people who signed the attendance sheet, and the expenses on hotel accommodation by DOT Caraga worth P235,436.09, which was paid despite insufficient documents.
COA also tagged as “excessive” some expenses related to the procurement of tour operator (P260,575) and disbursement for transportation services during the formulation of the tourism development master plan of the Candon City Ecotourism Zone (P41,390).
State auditors recommended the full refund of the amounts considered as irregular, unnecessary and excessive in nature.
The same audit report also found that various transactions amounting to P32 million were not supported with the necessary and properly accomplished documents.
It also found that the DOT office of the secretary remained non-compliant with policies on the procurement of hotel accommodations or lodging.
Eight out of the 10 contracts sampled in the compliance audit found that they exceeded the amount prescribed under existing guidelines by P1.5 million.
Similar observations were noted in other contracts audited by COA, which showed excessive cost of another P2.6 million.