DOH resorted to post-audit 'cures' to address adverse COA findings

The Department of Health (DOH) resorted to post-audit “cures” to address adverse audit observations noted by the Commission on Audit (COA) in its 2020 Annual Audit Report.

At the resumption of the congressional inquiry into COA’s findings that P67.32 billion in COVID-19 funds were mismanaged, members of the House Committee on Public Accounts also chided the DOH and the Procurement Service -Department of Budget and Management (PS-DBM) for failing to use up P2 billion fund for COVID-19 programs.

Committee chairman and Probinsyano Ako Partylist Rep. Jose “Bonito” Singson Jr. said the money should have been automatically reverted to the Bureau of Treasury.

On the other hand, Deputy Minority Leader and Bayan Muna Rep. Carlos Isagani Zarate slammed officials of the two government agencies for their failure to utilize the “savings” to finance public health programs that may have reduced the deaths and sickness caused by COVID-19.

“Nakangangalit ito. Bakit parked ang P2 billion. (This is revolting. Why was P2 billion parked?) We truly appreciated the audit report that COA released. Malayo sana ang narating nito (This should have gone along way) to save the lives of our people, the lives of our frontline health workers,” said Zarate.

The P2 billion is part of the P42-billion transferred by DOH to the PS-DBM but which the latter was unable to utilize for the procurement of COVID-19 supplies and equipment.

The COA report flagged DOH and PS-DBM for the former’s transfer of P42-billion for its common-used supplies and equipment in 2020. Auditors said this should have been covered by a memorandum of agreement.

The audit report also questioned DOH for the unauthorized grant of P275.9 million in cash allowances, gift certificates and grocery items to health workers, instead of giving them hot meals as provided under the Bayanihan programs.

Health Secretary Francisco Duque III told members of the House Committee on Public Accounts that there is no longer a need for the DOH and the Procurement Service -Department of Budget and Management to enter into a memorandum of agreement on the transfer by the former of P42-billion for the purchase of common-used supplies and equipment.

Duque said this issue was addressed by DOH when the the Government Procurement Policy Board issued a memorandum classifying test kits, personal protective equipment, face shields, face masks and others as consumables.

The GPPB released the memorandum over two months after COA informed the DOH of the adverse audit findings last February.

“So you requested GPPB to consider these supplies to consumable para magkaroon ng dahilan na maglipat sila ng P42 billion na hindi na mangangailangan ng MOA (in order to justify the transfer of the P42 billion without the need for MOA),” noted Deputy Minority Leader and Bayan Muna Rep. Carlos Zarate.

During a Senate hearing on the same COA findings, Senate Minority Leader Franklin Drilon noted that PS-DBM procurement transactions for PPEs such as face masks and face shields were overpriced.

With regards the audit observation on the meal allowance, Duque disclosed that this was addressed when President Duterte issued Presidential Memorandum dated June 1, 2021, or six months after the 2020 AAR was completed.