Senator Binay pushes Governance body to initiate fiscal reviews
Published Jul 1, 2018 03:28 pm
By Hannah Torregoza
Senator Nancy Binay on Sunday urged the Governance Commission for GOCCs (GCG) to review all Government Owned and Controlled Corporations’ (GOCCs) policies and fiscal practices to check if their funds are being used prudently.
Senator Nancy Binay (Senate of the Philippines official Facebook page / MANILA BULLETIN)
Binay, chair of the Senate committee on tourism, made the call after the Commission on Audit (COA) flagged the Department of Tourism (DOT) and Duty Free Philippines Corp. (DFPC) over the duty-free passes for various luxury items worth P2.5-million requested by former Tourism Secretary Wanda Tulfo-Teo.
The senator said that since a Senate inquiry has yet to be scheduled when Congress resumes session on July 23, the DFPC should undertake the necessary actions recommended by COA in its findings particularly the P3.797-million expenditures of the DOT which was charged to the DOT-Trust Liability Account (TLA).
But the GCG, being the government’s central advisory and oversight body over the public corporate sector, can start reviewing policies and fiscal practices of GOCCs, the lawmaker stressed.
“Perhaps the GCG can start reviewing the policies, requests and operational manuals of GOCCs to check if their resources are used efficiently and prudently so as not to expose government corporations to any kind of liability,” Binay said.
“Kailangan munang unahin tutukan yung mga may adverse findings ng COA, (There’s a need to focus on the adverse findings of the COA),” she said adding that the fiasco that beset DFPC is already a compelling reason for GCG to strengthen accountability at the corporate level.
In the light of the 2017 COA findings, she said the GCG must carry out its oversight functions over GOCCs particularly those that have adverse audit findings.
“With professionals at the helm of GOCCs, let's elevate corporate governance and good housekeeping to global best practices," she added.
Start billing DOT
Binay said the DFPC can start billing DOT and implement the recommendations of the COA based on its latest audit reports.
At the same time, she said the GCG can order the DFPC to file a petition for money claim with COA in relation to the unpaid merchandise including the P1.6-million consultancy contract which was charged against DOT’s profit share.
Binay, however, said the GCG has to seriously coordinate policies for the GOCC sector for the sake of operational harmony.
"Apparently, meron pagkukulang at may operational lapses kung bakit may ganitong uncontrolled withdrawals sa Duty-Free gamit lang ang gate pass slips (there were some mistakes and operational lapses on why there are uncontrolled withdrawals in Duty Free like this with just the use of gate pass slips),” she noted.
“The GCG and DFPC should make proactive steps to address COA’s findings and to prevent any repeat of similar irregular practice in the future,” she added.
Based on the findings, Teo, during her term as DOT secretary issued requests to pull out items from DFPC and have these charged to DOT’s share in the DFPC’s annual share.
The COA, in its report, said that while corporate gifts are allowed, the withdrawals made by DOT that were charged from its share constitute irregular transactions. Under the law, the DOT’s share net profit from the DFPC for a particular year shall be remitted to the Office of the Secretary to fund tourism programs and projects.
“Kailangan natin imbitahin sina former Sec. Wanda Teo at mga opisyales ng tourism agencies under DOT to shed light kung bakit may mga ganitong adverse findings ang COA (We will invite former secretary Wanda Teo and officials of the tourism agencies under DOT to shed light why the COA have these adverse findings),” she said.
“Given the audit report on the probable violation of RA 9593, we, in the Senate also wanted to know if there is any misuse, conversion or diversion of funds from their intended purpose,” Binay said.
She pointed out that Republic Act No. 9593 or the Tourism Act of 2009, clearly stipulates that remittances from the DFPC to DOT is intended to fund tourism programs, and is patently illegal to divert the funds for the purchase of branded bags, luxury cosmetic brands, kitchenware, grocery items and household appliances as corporate giveaways.
Binay said she wants to know if the DFPC Board has amended the provisions in Section 106 of the Tourism Act setting the procedure for the remittance of contributions to DOT.
She said under the law, the DOT secretary has to wait for the scheduled remittance of contributions from DFPC after the COA has audited corporation’s financial statements, and only then shall the contribution be determined due DOT.
“Accommodating requests outside the mandated procedure is not only violative of the law but also disadvantageous to the government. As a government corporation, the DFPC is expected to exercise great caution in managing its finances, adopt a superior set of best practices in corporate governance, and set the highest fiscal discipline to the best interest of the State,” she said.
“Were the rules expressed in the DFPC manuals and codes implemented? May binago bang proseso? All these we wanted to know,” Binay pointed out.
Senator Nancy Binay (Senate of the Philippines official Facebook page / MANILA BULLETIN)
Binay, chair of the Senate committee on tourism, made the call after the Commission on Audit (COA) flagged the Department of Tourism (DOT) and Duty Free Philippines Corp. (DFPC) over the duty-free passes for various luxury items worth P2.5-million requested by former Tourism Secretary Wanda Tulfo-Teo.
The senator said that since a Senate inquiry has yet to be scheduled when Congress resumes session on July 23, the DFPC should undertake the necessary actions recommended by COA in its findings particularly the P3.797-million expenditures of the DOT which was charged to the DOT-Trust Liability Account (TLA).
But the GCG, being the government’s central advisory and oversight body over the public corporate sector, can start reviewing policies and fiscal practices of GOCCs, the lawmaker stressed.
“Perhaps the GCG can start reviewing the policies, requests and operational manuals of GOCCs to check if their resources are used efficiently and prudently so as not to expose government corporations to any kind of liability,” Binay said.
“Kailangan munang unahin tutukan yung mga may adverse findings ng COA, (There’s a need to focus on the adverse findings of the COA),” she said adding that the fiasco that beset DFPC is already a compelling reason for GCG to strengthen accountability at the corporate level.
In the light of the 2017 COA findings, she said the GCG must carry out its oversight functions over GOCCs particularly those that have adverse audit findings.
“With professionals at the helm of GOCCs, let's elevate corporate governance and good housekeeping to global best practices," she added.
Start billing DOT
Binay said the DFPC can start billing DOT and implement the recommendations of the COA based on its latest audit reports.
At the same time, she said the GCG can order the DFPC to file a petition for money claim with COA in relation to the unpaid merchandise including the P1.6-million consultancy contract which was charged against DOT’s profit share.
Binay, however, said the GCG has to seriously coordinate policies for the GOCC sector for the sake of operational harmony.
"Apparently, meron pagkukulang at may operational lapses kung bakit may ganitong uncontrolled withdrawals sa Duty-Free gamit lang ang gate pass slips (there were some mistakes and operational lapses on why there are uncontrolled withdrawals in Duty Free like this with just the use of gate pass slips),” she noted.
“The GCG and DFPC should make proactive steps to address COA’s findings and to prevent any repeat of similar irregular practice in the future,” she added.
Based on the findings, Teo, during her term as DOT secretary issued requests to pull out items from DFPC and have these charged to DOT’s share in the DFPC’s annual share.
The COA, in its report, said that while corporate gifts are allowed, the withdrawals made by DOT that were charged from its share constitute irregular transactions. Under the law, the DOT’s share net profit from the DFPC for a particular year shall be remitted to the Office of the Secretary to fund tourism programs and projects.
“Kailangan natin imbitahin sina former Sec. Wanda Teo at mga opisyales ng tourism agencies under DOT to shed light kung bakit may mga ganitong adverse findings ang COA (We will invite former secretary Wanda Teo and officials of the tourism agencies under DOT to shed light why the COA have these adverse findings),” she said.
“Given the audit report on the probable violation of RA 9593, we, in the Senate also wanted to know if there is any misuse, conversion or diversion of funds from their intended purpose,” Binay said.
She pointed out that Republic Act No. 9593 or the Tourism Act of 2009, clearly stipulates that remittances from the DFPC to DOT is intended to fund tourism programs, and is patently illegal to divert the funds for the purchase of branded bags, luxury cosmetic brands, kitchenware, grocery items and household appliances as corporate giveaways.
Binay said she wants to know if the DFPC Board has amended the provisions in Section 106 of the Tourism Act setting the procedure for the remittance of contributions to DOT.
She said under the law, the DOT secretary has to wait for the scheduled remittance of contributions from DFPC after the COA has audited corporation’s financial statements, and only then shall the contribution be determined due DOT.
“Accommodating requests outside the mandated procedure is not only violative of the law but also disadvantageous to the government. As a government corporation, the DFPC is expected to exercise great caution in managing its finances, adopt a superior set of best practices in corporate governance, and set the highest fiscal discipline to the best interest of the State,” she said.
“Were the rules expressed in the DFPC manuals and codes implemented? May binago bang proseso? All these we wanted to know,” Binay pointed out.