A Department of Health (DOH) official on Tuesday confirmed that there were nearly 8,000 COVID-19 tests kits procured by the DOH and the Department of Budget and Management’s procurement service (DBM-PS) that had expired.
DOH Assistant Secretary Nestor Santiago confirmed this after he was asked by Sen. Francis “Kiko” Pangilinan at the resumption of the Senate blue ribbon committee’s investigation into the alleged overpriced COVID-19 pandemic supplies.
“I confirm that 7, 925 test kits had expired,” Santiago told the Senate panel.
According to Santiago, each test kit, depending on the brand, can do 40 to 50 tests per kit. And based on his record, 371, 794 worth of tests that were wasted.
“Based on my record, it's 371,794 tests,” said Santiago, after being confronted by documents obtained by the committee.
Pangilinan said this shows that the government potentially lost as much as P1.25 billion when it paid in full COVID-19 test kits that are near-expiry, and some P550-million from test kits that have expired.
“DOH was requesting a rescheduling of the delivery of Pharmally testing kits because the test kits that were delivered expired. Hindi nagamit (it was not used),” Pangilinan lamented.
“They paid in full for testing kits that were due to expire in six (6) months. Para tayong nagsunog ng pera sa gitna ng napakaraming namamatay (it’s like we just burned money while a lot of people have died),” he said.
Based on records of the DBM-PS, Pharmally Pharmaceutical Corp. delivered 4,800 kits on May 2, 2020, and 3,200 kits on May 4, 2020.
The inspection reports indicate that the kits have a manufacturing date of April 5, 2020 and an expiry date of October 5, 2020, or in six months. However, the DBM-PS Technical Requirement document dated April 21, 2020 indicates that all testing kits must be fresh stock and must have a shelf-life of at least 24 to 36 months from the date of delivery.
Citing industry insiders, Pangilinan said test kits that have 12 to 18 months shelf life would have 10 to 15 percent discount and if the shelf life is within six to 12 months, discount is at 15-25 percent. It could also have been discounted at around 30 percent or more if its shelf life is less than six months.
“But full amount was paid. That is overpriced. Not just overpriced, that is also using equipment that is substandard or at least lacking in the necessary shelf life for us to be able to effectively deal with Covid and avoid deaths and sickness,” he said.
He pointed out the government could have had a 25 percent discount for test kits that are expiring in six months and have an additional P1.2-billion.
With Pharmally’s pricing of P69,500 per machine, Pangilinan said the government wasted an additional P550-million.
“That gives us the gravity, the waste, the incompetence, the corruption that we are facing,” he said, pointing out that the government could have negotiated for a lower price.
“Why wasn’t DOH and DBM-PS looking out for our money and making sure we get a better discount?” he lamented.
Sen. Richard Gordon, chair of the Senate blue ribbon committee, agreed with Pangilinan pointing out that when the Philippine Red Cross bought test kits on March 23, 2020 from Sansure Biotech the tests was only P750 per test.
Gordon pointed out nobody thought to flag this discrepancy and ex-DBM-PS undersecretary Christopher Lao just kept on choosing Pharmally.