Admin charges vs Duque on Pharmally deals junked

Former Health Sec. Francisco Duque III

MANILA, Philippines — The Office of the Ombudsman has dismissed the administrative charges against former Health Secretary Francisco Duque III in connection with the alleged anomalous purchase of billions of pesos worth of COVID-19 supplies, owing to his separation from the service.

In a 10-page order approved by Ombudsman Samuel Martires on Sept. 30, the antigraft body granted the motions for reconsideration filed by Duque in May, in which he maintained his innocence in the irregular procurement of face masks, test kits, and other medical supplies during the pandemic.

READ: Duque wants graft case in Sandigan junked

The Ombudsman earlier found the Department of Health (DOH) chief guilty of grave misconduct, conduct prejudicial to the best interest of the service, and gross neglect of duty.

As a result, the retired Duque was ordered dismissed from the service with forfeiture of retirement benefits and perpetually disqualified from reemployment in the government.

But the Ombudsman’s office reconsidered its decision, citing Supreme Court jurisprudence on the administrative liability of public officers who had already left the service.

Separation from service

“[T]here is no denying that Duque’s separation from service coincided with the end of President Rodrigo Duterte’s term of office on 30 June 2022,” the Ombudsman said in its order, adding: “Such separation was a necessary consequence of the coterminous nature of his appointment as DOH Secretary.”

“Considering that the issues on the administrative charges have been rendered moot, this Office sees no point in belaboring the other arguments relating thereto,” the order added.

Duque, along with former Budget Undersecretary Lloyd Christopher Lao, who headed the Procurement Service of the Department of Budget and Management (PS-DBM) at the time, still faces related graft charges pending before the Sandiganbayan.

The criminal case stemmed from a graft complaint filed by former Sen. Richard Gordon and Sen. Risa Hontiveros against several officials of the DOH and PS-DBM in connection with the alleged anomalous transfers of P41.4 billion in funds from the DOH to the PS-DBM for the procurement of COVID-19 supplies in 2020.

The bulk of the contracts went to Pharmally Pharmaceutical Corp., a little-known company incorporated only in September 2019 with an authorized capital of P10 million and a paid-up capital of P625,000.

Genuine urgency

A Senate blue ribbon committee investigation found that Pharmally won contracts amounting to P11.5 billion, then the single biggest chunk of government contracts for pandemic supplies awarded to a private company.

Lao was arrested in Davao City in September and held briefly before posting a P90,000 bail in connection with the charges.

In his consolidated motion filed on May 14, Duque argued that the fund transfers were “brought about by genuine urgency and necessity based on the real-time needs of the DOH and its sub-agencies.”

In his separate motion for reconsideration dated May 20, Duque sought the dismissal of the administrative charges against him by citing his separation from service.