COA wants GSIS to limit infomercials on PTV

The Commission on Audit has urged the Government Service Insurance System (GSIS) management to limit the airing of its infomercials on state-run People's Television Network (PTV) through an exchange deal arrangement.

In its 2017 audit report, state auditors found that the P50.155 million agreement with PTV "did not add value to GSIS members, non-responsive to the exigencies of the GSIS mandate, and can be dispensed with without loss or damage to the System, hence, considered unnecessary."

The COA said GSIS entered into several memoranda of agreement with PTV to cover the network's unremitted premium and loan payments deducted from the salaries of PTV employees.

A review of the MOA dated December 10, 2015 shows PTV had an outstanding balance of P47 million with GSIS, which COA said will be settled through the airing of five- and 30-second infomercials, production costs, and coverage of GSIS special events.

The COA said PTV had exhausted all its balance with GSIS when it rendered media services worth P30.78 million and P19.37 million in 2016 and 2017, respectively.

The COA said this media services is deemed an "unnecessary expenditure" under COA Circular No. 2012-003 dated October 29, 2012 since the exchange deal arrangement does not support the objectives and mission of the GSIS.

"The additional exposures covered by the latest MOA were unnecessary since the GSIS required no introduction since it has been in existence years ago and membership to the GSIS is compulsory for all government employees receiving compensation," COA said.

"We further noted that the said informercials and television ad placements are merely stating that the program is sponsored by GSIS, hence, it did not add value to GSIS members," it added.

The COA said the show "GSIS Members' Hour" is more than enough to disseminate information about GSIS updates.

The commission, however, said PTV is an unpopular choice given its poor signal reception for viewers in the provinces and for non-cable subscribers in urban areas.

The COA recommended for GSIS to limit infomercials that only add value to GSIS members and if warranted, enter agreements with television networks that have better signal reception.

The COA also urged the management to require PTV to pay the premiums and loan amortizations of its employees equivalent to the P50.155 million arrangement.

The PTV management agreed to adhere to the recommendations of the audit report, according to COA. —KBK, GMA News