While the Department of Health was scolded for overstocking millions of pesos of medicine, a Department of Tourism received a similar rebuke from the Commission on Audit (COA) for clogging its bodegas with over P52 million in promotional materials.
In its 2020 Annual Audit Report (AAR) for the Tourism Promotions Board, COA said stashing promotional materials and giveaways exposes the items “to deterioration, damage and obsolescence”, not to mention the wastage of government funds.
The TPB AAR also disclosed that the DOT-attached agency had received notices for disallowances (NDs) for the disbursement of P1.56 billion in various procurement and P80.65 million for the grant of financial sponsorship in the absence of complete supporting documents.
Both NDs are being appealed by TPB officials.
“There was overstocking of promotional materials totaling P52.186 million in CY 2020, an increase of P15.399 million or 29.51 percent from CY 2019,” said COA.
The state audit agency noted that the said inventories “could not be disposed of”.
COA doubted the promotional materials can be distributed within the three-month period it was inventoried.
“In CY 2019, the Audit Team already called the attention of Management to the 44 percent increase in the inventory account,” said COA.
“However, review of records for CY 2020 showwed that there was an increase of P30,036,043.34 or 79 percent in the account Other Supplies and Materials inventory-Promotional Materials and Giveaways,” the audit agency added.
State auditors said TPB should observe prudence in the procurement of promotional materials and giveaways “to avoid overstocking and wastage of government funds.”
“Refrain from procuring promotional materials and giveaways until the undistributed/unutilized items have been distributed to intended recipients,” COA added.