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Manila Bulletin devider Philippines devider National devider COA orders TPB to pay Dentsu Philippines P102.3-M, return P29.9-M bond for media plan on 'It's More Fun in the Philippines'

COA orders TPB to pay Dentsu Philippines P102.3-M, return P29.9-M bond for media plan on 'It's More Fun in the Philippines'

Published Jul 19, 2025 02:28 pm
The Commission on Audit (COA) has ordered the Tourism Promotions Board (TPB) to pay Dentsu Philippines, Inc. P102.3 million and to return the firm’s performance bond of P29.9 million for the development and implementation of the media plan for “It’s More Fun in the Philippines” in 2015.
On top of ordering the payment and refund, the COA asked the Office of the Ombudsman (OMB) to investigate and file appropriate charges against those responsible for the botched contract that caused “significant financial loss" to the government.
The TPB is an attached agency of the Department of Tourism (DOT) and responsible for marketing and promoting the Philippines as a tourist destination, both locally and internationally.
TPB and Dentsu entered into a Contract for Services dated Feb. 9, 2015 for the procurement of the Development of Media Plan for January to June 2015. “It’s More Fun in the Philippines” project was budgeted at P600 million.
Under the contract, Dentsu is obligated to develop a media plan for the year 2015 on or before June 30, 2015, while TPB is obligated to pay a professional fee of two percent of the total approved and implemented media placements.
But even after Dentsu had fulfilled its obligations, TPB refused to issue a Certificate of Completion/Certificate of Final Acceptance and release Dentsu's performance bond.
Arbitration proceedings were instituted, and in its final award, the Arbitral Tribunal ordered TPB to pay Dentsu P102,313,174.26, to release the certificate of completion, as well as to release the performance bond of P29,994,400.
Dentsu likewise filed a Petition to Confirm the Domestic Arbitral Award before the Regional Trial Court (RTC) of Makati City Branch 148, which confirmed the award but deferred its enforcement as the claim should be brought before the COA.
The case was then filed before the COA, which granted the petition. "The final award in favor of Dentsu should not be disturbed. It is only proper for TPB to pay the amounts awarded by the Arbitral Tribunal," the COA said.
"However, this Commission finds that this case should be forwarded to the Office of the Ombudsman for proper investigation and filing of appropriate action against the then Chief Executive Officer and other persons liable or involved in the contract at that time, for causing significant financial loss to the government," it added.
The eight-page decision was signed by Chairperson Gamaliel A. Cordoba and Commissioner Mario G. Lipana. Commissioner Roland Cafe Pondoc dissented.
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