Department of Health (DOH) Secretary Teodoro “Ted” Herbosa on Tuesday, April 30, told senators that he had no knowledge of the alleged multi-level marketing (MLM) schemes happening in the medical industry.
That is, until the issue was raised before the Senate, and senators have pressed for an investigation into these allegations, among them, Senators Joseph Victor “JV” Ejercito, Raffy Tulfo and Jinggoy Estrada.
Herbosa elaborated on this, during the Senate Committee on Health and Demography’s hearing on the alleged MLM tactics employed by some pharmaceutical companies.
“Mr. Chair, I haven’t heard it before and I just heard about it when we were questioned about it during our previous hearing and then somebody messaged me through social media pointing to this (alleged) practice,” Herbosa said in response to Sen. Christopher “Bong” Go, chairman of the Senate health panel during the hearing.
“So it was only then that I learned that what Sen. Tulfo has been saying is true. So I also asked some of people and I got second hand information that this is allegedly true,” the DOH chief said.
“So I was forced to release a memorandum to remind all government physicians and all other physicians about the code of ethics (for medical professionals),” Herbosa explained.
Herbosa said his knowledge about the issue was only limited to alleged sponsored trips to foreign conferences and “meals in expensive restaurants.”
“But about scheme wherein prescriptions are counted, and quota is made—multi-level marketing—I heard about it only now. And I just learned about how exorbitant the gifts are,” he said.
During the hearing, Bell Kenz Pharma Inc., the pharmaceutical company that is now at the center of the Senate inquiry, refuted the allegations during the hearing, insisting that there is “misinformation propagated through various media channels” about their company.
“I stand before this august assembly, to vehemently refuse this baseless allegations. And to reaffirm our (Bell Kenz Pharma’s) unwavering commitment to integrity and compliance,” said Dr. Luis Raymond Go, cardiologist and chief executive officer (CEO) of Bell Kenz Pharma.
Dr. Go said Bell Kenz does not use the MLM scheme in selling its medicines and sells medicines at lower cost compared to other brands. He also denied allegations that Bell-Kenz Pharma gives doctors commissions in the form of cash or high-end cars and other luxury gifts in exchange for prescribing Bell-Kenz medicines.
“The Bell-Kenz board is a collective of medical doctors that are dedicated to give affordable public health care. The ethos of the company is patient-centered care…We want to ensure transparency,” Dr. Go told the Senate panel.
“I unequivocally state that Bell-Kenz is a law-abiding company adhering to the rules of the Food and Drug Administration (FDA), the Securities and Exchange Commission (SEC), the Philippine Medical Association (PMA), and other relevant governing bodies,” he added.
“We operate in a pharmeceutical marketing method and ensure that we do it in transparency, ethical integrity with our practices upholding the highest standards of corporate conduct,” Dr. Go stressed.