Metro Manila (CNN Philippines, July 13) – State auditors have called out the Department of Tourism (DOT) for their “extravagant” spending in hotels and restaurants in 2021.
The Commission on Audit (COA) stated in its 2021 annual audit report that the DOT spent over ₱3.8 million in their transactions, which deviated from the proper standards set by the government on disbursements.
The COA flagged the contract signed by the DOT Office of the Secretary (OSEC) and five-star luxury hotel Grand Hyatt Manila in Taguig City that is worth ₱236,500.
“Payment for the entire contract cost for 75 persons despite non-consumption of agreed deliverables due to minimal participants of only 13 persons is considered excessive,” COA noted.
“Conducting meetings/forums in luxury hotels results in spending unnecessary higher cost of misrepresentation expense which is considered contrary to existing government thrust of judicious and prudent use of government funds,” it added.
The state audit body also observed lapses in the ₱1.534 million worth of financial assistance provided by DOT OSEC to Pacific Asia Travel Association such as non-issuance of official receipts, inconsistencies on dates of supporting documents, and excessive disbursement of amounts.
The COA also said the DOT OSEC exceeded in spending a total of ₱544,450 for hotel accommodation and meals when their employees attended various conferences at Joy-Nostalg Hotel & Suites Manila, Movenpick Resort and Spa Boracay, and Hilton Clark Sun Valley Resort.
State auditors included in their report the ₱697,854 spent by DOT Region 1 for the Ridge and Reef Travel Corridor Launching in Ilocos Norte, which included a plated lunch at the Fort Ilocandia Resort Hotel with a cost of ₱1,100 for each of the 60 participants and a cancelled lunch reservation at Pannzian Beach and Mountain Resort.
The COA also flagged the “irregular” mobile phone and post-paid plan subscription allowance by the DOT OSEC and Region 4-A and 13 offices, with a combined total of over ₱164,000.
The COA said the lapses in disbursements by DOT were “irregular, unnecessary, excessive, and extravagant” in accordance with the state audit body’s guidelines on proper spending by government offices.
“We recommended that DOT OSEC and ROs (Regional Offices) concerned to submit the required documents to support the regularity and validity of transactions. Otherwise, demand full refund of the amounts considered as irregular, unnecessary, unconscionable, excessive, and extravagant in nature,” the COA said in its report.
In a statement released Thursday, the DOT said it has ordered their concerned offices to submit the required documents on the transactions flagged by COA.
“The DOT’s current administration maintains that the transactions flagged by COA must be properly addressed by the accountable persons and offices involved as transparency and accountability in the affairs of the Department is a firm commitment of the current dispensation,” the agency said.
