COA flags P1-M payment to radio reporter for Children's Month

MANILA, Philippines — The Commission on Audit has directed the Council for the Welfare of Children (CWC) to compel a radio reporter to return the P1.05-million payment he or she received for the consultancy services he or she supposedly rendered in connection with CWC's events in November last year in celebration of the National Children's Month.

In an annual audit report posted on its website on Friday, the COA said the payment, received by the unnamed reporter of radio station DZMM, was “bereft of legal basis” due to absence of any contract.

The COA said the availment of the reporter's services did not also go through a public bidding required under government procurement rules.

“Cash advances amounting to P1,050,000.00 was paid to a DZMM reporter to cover the activities of the CWC’s celebration of National Children’s Month (NCM) and [be] featured in TV networks and print media,” the COA report read.

“However, audit of the liquidation of the cash advances revealed that no contract was executed neither was the procurement of the service go through public bidding pursuant to the Implementing Rules and Regulations of Republic Act 9184 (Government Procurement Reform Act), thus bereft of legal basis,” it added.

The audit body pointed out that under COA Circular No. 2012-003 dated Oct. 29, 2012, expenses for advertisements in print or broadcast media, of the government agency's anniversaries and other related events “merely for publicity or propaganda” is considered an “irregular expenditure.”

The COA said media advertisement are only allowed if it will promote trade and business as well as the government agency's mission.

Based on the audit report, the CWC, an attached agency of the Department of Social Welfare and Development, tapped the services of the radio reporter, specifically to arrange the radio and television guestings of CWC officials; compile news reports/articles and submit the same to CWC for their reference; invite members of the press to various activities in connection with the National Children's Month (NCM) celebration; and distribute materials to members of the media who attended the NCM events.

The COA, however, pointed out that under Section 5 of the Implementing Rules and Regulations (IRR) of RA 9184, consultancy services shall only be employed by a government agency if the activities require “external technical and professional expertise that are beyond the capability and/or capacity” of the government agency to undertake such as the conduct of feasibility studies, construction design and supervision and other technical services.

Furthermore, the COA said Section 2 of the same IRR states that “procurement of infrastructure projects, goods and consulting services shall be competitive and transparent, and therefore shall go through public bidding.”

Because of the irregularities found, the COA said it had already issued a Notice of Disallowance dated Feb. 1, 2018, to mandate the return of the amount paid to the reporter.

“We recommended, and [CWC] Management agreed, to require the persons liable to settle the disallowance amounting to P1,050,000.00,” the COA said.

In a statement issued Saturday, the DZMM assured that it will investigate the questioned transaction.

“DZMM Radyo Patrol 630 takes allegations of unethical practices by any member of our news organization seriously,” the DZMM management said.

“We expect our journalists to adhere to the highest standards of ethical and professional conduct at all times. We shall conduct an investigation based on the Commission on Audit report implicating an unnamed 'DZMM reporter',” it added. — Elizabeth Marcelo