COA orders DOT to pay for Wanda Teo’s P2.5-M Duty Free spending

The Commission on Audit has ordered the Department of Tourism to pay Duty Free Philippines Corporation (DFPC) P2.5 million on behalf of luxurious purchases made by former Tourism Secretary Wanda Teo.

According to the 2017 audit report on DFPC, Teo withdrew total merchandises worth P2.17 million across various Duty Free Stores and spent another P346,446.80 on luxury goods.

"The withdrawn merchandise consisted of toiletries, kitchen wares, beddings, appliances, canned goods, branded bags, luxury brand cosmetics, chocolates and others," COA said.

The commission further revealed that all of these 277 luxury items were "duly receipted by the Office of the DOT Secretary upon the release of the items from the DFPC warehouse." The DFPC is an attached agency of the DOT.

The COA said the items were purchased by virtue of various memoranda issued by Teo's office and the office of Undersecretary for Administration and Special Concerns Rolando Canizal and their request for gate pass slips which authorized the release of the goods from Duty Free stores.

lrregular withdrawal

Teo's P2.5-million spending was part of DOT's questionable withdrawals from its share of profits through its Trust Liability Account that reached P3.797 million, according to COA.

Aside from Teo's Duty Free shopping, the DOT also spent P1.6 million of its DFPC shares on consultancy services and P22,893 on shipping fees for the transport of DOT donations.

The COA said these withdrawals are prohibited under the Tourism Act of 2009 and its Implementing Rules and Regulations, and failed to undergo approval from the DOT legislative body upon recommendation of the Department of Budget and Management.

The DOT agreed to foot the bill for Teo's expenditures, according to its comment on the audit report.

"Management agreed to bill the DOT for the subject expenditures charged to the DOT-Trust Liability Account and record the same as receivables from the DOT under the account due from other (national government agencies)," state auditors said.

The COA also urged the DFPC to refrain from charging DOT for its withdrawals of shares of profit in Duty Free stores.

'Lawful processes'

Teo said she has yet to read the COA report.

She, however, seemed to understand that state auditors found her spending to be lawful when she claimed these were compliant under COA and DFPC rules.

"I understand that DFPC has already released an official statement saying that it strictly complied with the relevant COA Circular and DFPC's own Guidelines on the issuance and usage of GPS," Teo said in a statement.

"I support the DFPC's official statement as I hereby affirm that the DOT under my watch would not have allowed receipt by the DOT of any DFPC items and merchandise unless the lawful processes are duly observed and followed," she added.

Teo resigned as DOT chief in May after it was revealed that her brother Ben Tulfo's media production outfit received P60 million to air DOT advertisements on its show on state-run Philippine Television Network Inc. — MDM/BM, GMA News