DOT ordered to pay BBC for ad spots under Teo

Inquirer file photo

MANILA, Philippines — The Commission on Audit (COA) has ordered the Department of Tourism (DOT) to pay British Broadcasting Corp. (BBC) Global News nearly $300,000 in advertising expenses over its agreement in 2017.

In its decision dated Dec. 7, 2023, and released to the public this month, the COA en banc partially granted the petition for money claim by BBC Global News against the DOT for the payment of advertising services rendered amounting to $600,000, or P30.3 million.

This was in connection with a 2017 agreement between then Tourism Secretary Wanda Tulfo-Teo and BBC Global News and BBC Worldwide for advertising services amounting to $1.5 million.

The services include two 30-minute content productions with four airings each and seven feeds on BBC World News; 390 advertising spots on BBC Earth Asia; advertising spots on BBC World News Asia Pacific, Europe, and North America; and a 970-by-250 billboard and 300-by-250 midpage unit on BBC’s website.

This means the BBC should provide DOT with a total of 2,163 advertising spots on different platforms.

BBC’s petition

BBC Global News, a national broadcasting corporation operating under the United Kingdom royal charters, said in its petition that it fulfilled its obligation to advertise the Philippine tourist spots dubbed “Philippine Island Treasures.”

While the DOT paid 60 percent of the contract in two tranches totaling P45.9 million, the BBC said the Philippine government agency failed to pay BBC Global News the final tranche of the contract amounting to $600,000.

Teo, at the time, stated to the BBC that “payment cannot be effected,” citing an audit observation memorandum (AOM) in May 2018 that noted that the project was “not sufficiently funded as there is a deficiency,” which amounted to P20.1 million.

“BBC Global News rendered services for which the DOT has benefited,” the BBC said in its petition, as quoted in the COA decision. “Thus, even assuming that there is no sufficient funds for the contract, the services of BBC Global News must still be paid based on the principle of quantum meruit (as much as one has earned).”

COA’s conclusion

The COA said the DOT cannot evade payment and “unjustly enrich itself,” since it admitted that BBC can still be paid even without the certificate of completion, “as it is shown that the amount being claimed is the reasonable value of its unpaid services.”

“Thus, this Commission gives due consideration to the claim in the interest of equity and substantial justice, applying the principle of quantum meruit,” the commission en banc said in its 11-page decision.

The decision stated that the money claim of BBC Global News should be granted, amounting to $299,724.

But the audit body said the advertising spots intended for the BBC’s main website bbc.com, amounting to $300,276 were not provided or delivered.

The value of actual services rendered was $1,199,724, according to the COA.