Repost: COA Calls Out Cesar Montano for Excessive Travel Expenses

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Source: www.news.mb.com.ph

The Commission on Audit chided actor Cesar Montano for his frequent travels abroad during his term as chief operating officer of the Tourism Promotion Board, describing the travel expenditures as “extravagant” and “excessive”.

COA, releasing the 2017 annual audit report for TPB, also noted that accompanying Montano in his multiple foreign travels were a private secretary and an executive assistant who spent P2.995 million.

Montano served as TPB chief last year and resigned last May after being implicated in fund irregularities in the implementation of the “Buhay Carinderia” food tourism project.

The COA questioned the “regularity and validity of payments” made to Dentsu Philippines Inc. for advertising services amounting to P873.26 million, saying that documentation for disbursements was incomplete.

“TPB approved and implemented media plans and utilized the unexpended amount of the contract in the total amount of P13.221 million despite the lapse of the contract period, ”stated one of six audit observations on the advertising deal.

The COA noted that the agency granted sponsorships totaling P7 million to various organizations, local government units and private corporations ranging from P50,000 to P4.200 milliion for events unrelated to the promotion of Philippine tourism.

“Foreign travels undertaken by the Chief Operating Officer and OIC-Deputy for International Promotions for CY 2017 were more than 12 times, incurring travel expenses totaling P2.276 million and P1.957 million, respectively,” the audit report stated.

COA added: “Moreover, business class air tickets amounting to P0.594 million were purchased for two foreign travels of the COO, contrary to Section 10 of EO 248 as amended by Section 7 of EO 298 dated March 23, 2004.”

According to COA the travels abroad for “more than 90 days and more than 12 times” for a government officer or employee “ is deemed excessive and may have adverse repercussions on the management of the affairs of the government corporation.

Audit examiners explalined that government personnel and officials are also restricted in taking the economy class in air travels, unless authorzed by the president.

While COA auditors agreed that frequent travels are part of the mandate of TPB officials, Montano and other officials were also required under Repubic Act 9593 to to observe “austerity” and find ways to minimize cost .

On the grant of financial sponsorships by TPB, COA said the Tourism Act limits the promotional and marketing activites of the TPB to local and internaitonal advertisements of the country’s major tourism destinations and other tourism products.

Thus , the P7 million spent for sponsorships is not authorized. Covered by the expenses were sponsorships for a dance competiton in Marawi City, P4.2 million; financial help for Musiko 2017 Grandest marching Band Parade, P2 miliion and sponsorship of Mothers Day Fun Run, P500,000, among others.

“The regularity and validity of payments made to Denstu Philippines Inc. (DPI) in relations to its advertising services contract amounting to P873.269 million could no be ascertained,” COA said.

Among others, questioned by auditors in the advertising contract were the failure of TPB to support disbursement vouchers with complete documentation; the lack of biling invoices from foreign suppliers or media presenters; the billing of television placmenet spots aired in Eurosport Channels in 2014 instead of actual billing of the advertisers on the actual spots aired and the non-deduction in the progress bilings of the 20 percent initial payments amounting to P49.213 million.