MANILA (2ND UPDATE) -- The Department of Tourism (DOT) on Monday said it is now in the process of terminating its contract with ad agency DDB Philippines, which it tapped to create the country's tourism branding campaign, after their "abject failure to comply with their obligations."

• DOT says looking into originality of ad campaign footage

"As DDB Philippines has publicly apologized, taken full responsibility, and admitted in no uncertain terms, that non-original materials were used in their AVP, reflecting an abject failure to comply with their obligation/s under the contract and a direct contravention with the DOT’s objectives for the enhanced tourism branding, the DOT hereby exercises its right to proceed with termination proceedings against its contract with DDB," the DOT said in a statement.

The issue stemmed from the audio visual presentation (AVP) "prepared, produced, and published by DDB Philippines," which used stock footage purporting to be scenes from the Philippines.

• Ad agency apologizes over use of stock footage in 'Love The Philippines' video

DDB has "profusely apologized" to DOT Secretary Christina Frasco, adding that it would "take full responsibility" for the alleged blunder.

DDB said the presentation, which drew flak on social media over the weekend, was intended to be a "mood video to excite internal stakeholders about the campaign."

'NO PAYMENT'

DOT said no payments have been made to DDB for the tourism branding campaign.

"The DOT shall exercise its right to forfeit performance security as a result of default in obligations under the contract... Further, the DOT reserves the right to take all other action against acts deemed inimical to the interest of Philippine tourism," the agency said.

• 'Beyond the fun': Why DOT changed More Fun in the Philippines' tourism slogan

But former Philippine Tourism Secretary Richard “Dick” Gordon said he does not believe that DDB was not paid for its services.

He warned that some government officials may also be held accountable for the video editing mishap.

“I must remind our public officials that when you do damage to the government, you are liable under the Anti-Graft and Corrupt Practices Act, even if the person or the agency did not profit from it,” he said.

Several senators earlier said heads should roll over the AVP fiasco as they slammed the DOT for its oversight.

"Hindi rin dapat nagpapabaya ang DOT sa ganitong multi-milyong pisong kampanya. The DOT should also be more discerning and critical on pegs, concepts, storyboards, and drafts that ad agencies present to them. May lapses din sa bahagi ng kliyente," Sen. Nancy Binay said.

"It's frustrating to know that even the government can fall victim to blunders in a marketing campaign... Para tayong na-scam sa advertisement na ito," Sen. Grace Poe said.

Meanwhile, Sen. Imee Marcos refused to comment on the controversial tourism slogan: "Huwag na tayong sumali sa kuyog. Talagang kinukuyog na nang bongga."

The new tourism slogan "Love the Philippines" has elicited mixed reactions since it was unveiled last week.

• ‘Love the Philippines’: Does the new Tourism slogan need a comma?

The DOT has set aside the "More Fun in the Philippines" slogan because it wants to show the world that the Philippines is "more than just a fun destination", Frasco explained.

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