A photo posted by John Lloyd Cruz (@johnlloydcruztm) on Dec 27, 2015 at 8:56am PST

MANILA - Lawmakers on Monday discovered several irregularities in the controversial disqualification of the film "Honor Thy Father" from the best picture race of the Metro Manila Film Festival (MMFF).

Quezon City Rep. Winston Castelo said Tuesday that the House Committee on Metro Manila Development learned of a conflict of interest which may have influenced the decision to disqualify the film.

"May mga producers po na related or associated sa ibang member ng [MMFF] ExeCom (Executive Commitee)," he told radio dzMM.

Laguna Rep. Dan Fernandez singled out ExeCom member Dominic Du, whose lawyer is supposedly Josabeth Alonso, a producer of the MMFF entry "Walang Forever."

Du denied that Alonso is his lawyer, but admitted ties to a company that distributed two movies in the festival.

In the interview, Castelo added that three members of the board of jurors were instructed not to consider "Honor Thy Father" for best picture on December 21, four days before the ExeCom officially met and deliberated.

"May advance information prior to the official deliberation of the ExeCom na idi-disqualify na po," Castelo said.

The MMFF disqualified the movie because its producers allegedly failed to disclose that the it was already shown in the Cinema One Originals Film Festival. They said this violated MMFF rules barring the participation of films which were already shown in other festivals.

(READ: MMFF explains 'Honor Thy Father' disqualification)

Undue process?

The team behind "Honor Thy Father," however, insisted they were not given due process in protesting the MMFF decision.

Agnes Maranan, legal counsel of "Honor Thy Father: producer Reality Entertainment, said that in a letter dated November 5, they disclosed the prior exhibition of the film to MMFF heads.

"They allowed us to advertise the film, they allowed us to be on the parade… There doesn't seem to be enough justification," she pointed out.

Film producer Dondon Monteverde added that they only learned that their film had been disqualified on December 26, a day before the awards night.

"We have a 10-day period to appeal but by disqualifying us on a Saturday afternoon, we were absolutely deprived of a right to appeal," Maranan added.

Metro Manila Development Authority (MMDA) chairman Emerson Carlos, also the overall chairman of the MMFF, admitted that the ExeCom received the November 5 disclosure.

But he insisted that the producers should have disclosed this as early as October 22, when they submitted their intent to join the festival.

He also said the ExeCom only released their final decision to disqualify "Honor Thy Father" on December 26. He said its producers were informed on the same day.

(READ: Directors condemn 'Honor Thy Father' disqualification)

MMFF revenue

The House hearing on MMFF controversies will continue Wednesday with an inquiry into possible fund irregularities in the festival's revenue.

Castelo said the Commission on Audit (COA) will attend the next hearing to ensure that billions of pesos in MMFF earnings have been properly allocated to its intended beneficiaries.

He said a COA report in 2009 earlier revealed many irregularities in the allocation of MMFF funds.

"May mga pondo po na ini-release nila nang hindi sang-ayon sa intended beneficiary sapagkat malinaw po sa rules and regulations ng MMFF na lima lang po ang body na magiging beneficiary nito," he told radio dzMM.

The MMFF, held from December 25 until January 7 every year, aims to raise funds for movie workers and the development of the local film industry.

Local government units waive amusement taxes for the festival in favor of four MMFF beneficiaries: the Film Academy of the Philippines, Motion Picture Anti-Piracy Council, Film Development Council and Optical Media Board.

State auditors will examine revenues of the annual festival for the past 10 years.

Castelo also quashed claims that the COA has no authority in auditing the funds, which are supposedly not government money.

"Nakipag-usap na po kami sa COA head at ang kanyang opinyon po ay ang pondo ng MMFF ay nanggagaling sa 20 percent amusement tax," he said.

"Alam naman po natin na ang amusement tax ay pera ng bayan. Nararapat lamang po na kami sa Kongreso na we should see to it na ang pondo ng pamahalaan ay hindi po nasasayang."

The eight film entries in the recently held MMFF have earned an estimated P1.02 billion in total.