The Commission on Audit has called the attention of the Government Service Insurance System to a P50.155-million advertisement contract with the government’s People’s Television Network Inc. or PTV-4.
In a 2017 audit report, CoA questioned the exchange deal between the GSIS and PTV-4 to cover P47.02 million worth of unremitted premium and loan payments deducted from the wages of employees of PTV-4 in 2015 under the Aquino administration.
“The payment through exchange deal arrangement for media services with People’s Television Network Inc. in calendar year 2017 totaling to P50.155 million did not add value to GSIS members, non-responsive to the exigencies of the GSIS mandate, and can be dispensed [with] without loss or damage to the System, hence, considered unnecessary,” it read.
Under a memorandum of agreement, PTV-4 would provide the airing of five-second and 30-second infomercials and coverage of special events of the GSIS.
“The cost of media services for calendar years 2016 and 2017 amounted to P30.782 million and P19.373 million, respectively, or a total P50.155 million, thus, exhausting the balance covered by the MoA,” CoA said.
Such infomercials were considered an “unnecessary expenditure” under CoA Circular No. 2012-003 issued on Oct. 29, 2012, CoA said, citing PTV-4’s poor signal reception in Metro Manila and far-flung provinces.
The “GSIS Members’ Hour” aired on PTV-4 was already enough as an information tool to update the members.
“The additional exposures covered by the latest MoA were unnecessary since the GSIS required no introduction since it has been in existence years ago and membership to the GSIS is compulsory for all government employees receiving compensation,” the report said.
“We further noted that the said informercials and television ad placements are merely stating that the program is sponsored by GSIS, hence, it did not add value to GSIS members,” it added.
Even if there were no actual cash outlays from the GSIS, the media services rendered were charges against the receivable account “which could just have been collected and added” to the funds of the GSIS, CoA said.
“We reiterated our recommendations and Management agreed to limit infomercials to those that add value to GSIS members… We further recommend that Management require PTNI to pay the premiums and loan amortizations equivalent to the exchange deal arrangement,” its report read.