Employees of the state-owned IBC-13 television network launched this week a series of mass actions against alleged massive graft and corruption in the management of the firm while it continues to deny the workers the benefits mandated under the collective bargaining agreement.

Citing audit observations in the 2019 IBC-13 annual audit report released recently by COA, the IBC Employes Union (IBCEU) called on President Duterte to put an end to the corruption that the audit agency has uncovered.

In a statement, IBCEU president Alberto Libo-on said the group remained hopeful Duterte will be able to address the issues raised by COA, adding that the Chief Executive   must act on them immediately.

IBC-13 is an attached agency of the Presidential Communications Operations Office under Secretary Martin Andanar.

The union cited several audit observations, including one where COA questioned the implementation of salary adjustments for IBC-13 officers. 

Auditors said the IBC-13 management decried as “without legal basis” the payment of P1.817 million for salary increases and 13th month pay to management officers.

“Due to the non-observance of the guidelines and policies issued by the President on the salary increase of IBC-13 officers, the payments of such salary increase, 13th month pay differential and bonus differential to IBC-officers in the total amount of P1.817 million were without legal basis, thus, disallowed in audit,” COA stated.

The state audit firm called for a refund of the amounts received by subject officers if they are unable to secure the President’s approval for the implementation of the salary adjustment.

In the same audit report, COA noted that P146.303 million in value-added tax collected by IBC-13 was not remitted to the Bureau of Internal Revenue, thus violating the National Internal Revenue Code.

The state audit agency warned that penalties and surcharges are likely to be imposed by BIR due to the non-remittance of the VAT collection.

The IBCEA  also called the President’s attention to the failure of the IBC-13 management to implement the COA recommendation for the rescission of the joint venture agreement it entered with the R-II Builders Inc/Primestate Venture Inc. (RBI/PVI).

Audit observations in 2018 called the attention of IBC-13 to rescind the JVA as it appeared to have taken the form of a sale of the IBC-13 property.  COA said this is not in accordance with Presidential Decree 1445 and “disadvantageous to the government.”

In the 2019 audit report, COA said the issue will be elevated to the COA Legal Affairs Office for proper disposition.