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MANILA, Philippines — Sagip party-list Rep. Rodante Marcoleta has questioned the House appropriations panel for probing the Department of Health’s (DOH) fund transfer to the Procurement Service of the Department of Budget and Management (PS-DBM) during the Covid-19 pandemic when it was done by the past Congress.
During the hearing on the DOH and Philippine Health Insurance Corporation (PhilHealth) fund utilization on Monday, Marcoleta asked why the issue was brought up again when both the House and the Senate have investigated it and recommended complaints against the persons involved.
He was referring to the investigations into the P47.6-billion COVID-19 funds that the DOH transferred to the PS-DBM in 2020. It included the contract that the PS-DBM entered with Pharmally Pharmaceutical Corp., which was accused of selling overpriced medical supplies such as face masks and face shields.
“I know that the major issue or concern, which is number one on the list, is the DOH transfer of funds to PS-DBM. To my recollection madam chair, the whole 18th Congress of the Philippines, particularly the blue ribbon committee of the Philippine Senate, extensively dwelled on this subject matter […] I believe these matters were extensively dealt with,” Marcoleta told committee senior vice chair and Marikina 2nd District Rep. Stella Quimbo.
“I’m also knowledgeable of the fact that … there have been several cases filed against individuals in connection with this subject matter. So what are the specific areas left uncovered by those committee hearings in the past, Madam Chair that would require a repetition of such an inquiry?” he asked.
Quimbo said most of the discussions conducted by the 18th Congress revolved around questions on the fund transfers, while the current hearings are on the “possible overpricing” of testing kits, which “has not been discussed.”
The Marikina lawmaker also pointed out that the Commission on Audit (COA) released its fraud audit report on the issue on Nov. 16, 2023, over a year after members of the 19th Congress assumed office.
READ: COA confirms DOH, PS-DBM ‘lapses’ in Pharmally deals
“So we can look at the November 16, 2023 fraud audit report, which was already transmitted to the DOH, PS-DBM, Office of the Ombudsman, Congress, as well as the OP (Office of the President). Actually sir, if they have memorized their answers, why can’t they answer now — it’s the reason why our hearing spilled over to today,” she added.
Marcoleta said there was no overpricing as former COA Chairperson Michael Aguinaldo said there was no proof of pandemic materials being overpriced.
“I had the opportunity of interpellating personally the chair of the Commission on Audit, who was then chair Michael Aguinaldo, and I repeatedly asked him whether or not there was overpricing of the materials procured by PS-DBM. I am very sure of those questions and he repeatedly answered that even before our meeting or hearing then, he appeared in the Philippine Senate and he also admitted that there was no overpricing,” Marcoleta said.
“That is why to my recollection your Honor, that was the testimony and admission made by no-less than the chair of the COA at that time … So until and unless we can find other explanations that the statements made by the COA chairman [are] incorrect, then we are supposed to inquire further on these issues,” he added.
In August 2021, the COA found deficiencies in how the DOH managed its P67.32-billion fund in 2020 to fight the COVID-19 pandemic, adding that it contributed to challenges that the country faced during the crisis.
READ: Duterte ordered transfer of P47.6 billion COVID funds to PS-DBM – Duque
Eventually, the DOH was questioned for handing over to PS-DBM the responsibility of procuring protective equipment when the latter’s mandate was to purchase common-use supplies like pens, paper, and other generic equipment.
The PS-DBM was also quizzed at the Senate about why it gave a contract to Pharmally Pharmaceutical Corporation despite the company’s small paid-up capital of P625,000.
The COA released another report in 2023—the fraud audit report mentioned by Quimbo—which showed that several lapses were committed in handling funds and purchasing COVID-19 supplies.
Quimbo had asked Health Secretary Teodoro Herbosa and former Health Secretary Francisco Duque III why there was a P500 disparity in purchasing COVID-19 test kits, which she stressed would result in a huge gap when the government ordered in bulk.
READ: P500 disparity in Covid-19 test kits leads to huge gap in orders – Quimbo
She also said there were instances when test kits of the same brand and the same method were priced at P2,083 and P1,562.
Herbosa, who was not yet DOH chief when the pandemic struck in 2020, said he believes the different prices were caused by the items being purchased in different time frames. Duque agreed with Herbosa.