GMA paid Hong Kong PR firm P48.7 million in 2009 - COA

MANILA, Philippines - A Commission on Audit (COA) report showed that former President Gloria Macapagal-Arroyo paid a Hong Kong-based public relations firm more than P48.7 million for “consultancy services” in 2009.

The report said that Malacañang spent over P66.3 million for consultancy services last year, which means that 74 percent of the funds went to Burson-Marsteller.

The COA report said the Office of the President did not submit documents to support the payment “thus the existence, validity and legality of the payments could not be readily determined.”

Burson-Marsteller, according to the company’s website (http://www.burson-marsteller.com), “is a leading global public relations and communications firm.”

The firm claims that clients often engage its services “when the stakes are high: during a crisis, a brand launch or any period of fundamental change or transition.”

“They come to us needing sophisticated communications campaigns built on knowledge, research and industry insights. Most of all, clients come to us for our proven ability to communicate effectively with their most critical audiences and stakeholders. We develop client programs using an Evidence-Based Communications approach.”

Arroyo supposedly hired Burson-Marsteller to boost her image as her popularity and trust ratings were steadily going down.

The COA report said the Office of the President paid the Hong Kong-based company professional fees and related expenses for strategic communications consultancy project in four separate billings.

The checks were issued on April 29, 2009 for P12.3 million; on May 22, 2009 in the amount of P7.9 million; on July 28, 2009 for P14.4 million; and on Oct. 16, 2009 in the amount of P13.9 million.

“Post-audit of the above payments disclosed that the corresponding disbursement vouchers were not supported by any consultancy contract as well as the accomplishment reports,” state auditors said.

The COA report recommended that the Chief of Finance Office and/or the Chief Accountant submit the needed documents, particularly the corresponding consultancy contract as well as the accomplishment reports to determine the legality and validity of the payments made to Burson-Marsteller.

In compliance, Malacañang eventually submitted a copy of the Letter of Engagement dated June 1, 2009 signed by then Executive Secretary Eduardo Ermita on behalf of the government of the Republic of the Philippines.

“Rest assured that all disbursements of the OP (Office of the President) are in accordance with existing COA rules and regulations,” the Office of the President said.