Marikina City 2nd Rep. Stella Quimbo (Ellson Quismorio/ MANILA BULLETIN)

There might have been overpricing in the procurement of Covid-19 test kits by the Department of Health (DOH) through the Procurement Service of the Department of Budget and Management (PS-DBM) during the previous Duterte administration. 

Marikina City 2nd district Rep. Stella Quimbo made this observation while presiding over the Committee on Appropriations' ongoing oversight hearing on the budgetary performance of the DOH and the Philippine Health Insurance Corporation (PhilHealth) for the first quarter of fiscal year 2024 and prior years. 

As the committee scrutinized the alleged irregularities in the transfer of P47.6 billion of DOH funds to PS-DBM for Covid-19 supplies, Quimbo noticed a disparity in the prices of test kits with the same brand and type, based on the DOH's procurement list. 

"Napansin ko po may mga pagkakataon na pare-pareho ang test type, pare-pareho ang brand, pero iba-iba ang naging presyo, and the price difference was as high as about P500. For example, may price difference na P2,083 versus P1,562," Quimbo, senior vice chairperson of the committee, said. 

(I noticed that there was variance in price, and the price difference was as high as about P500, despite the procurement of the same test types and the same brands. For example, there was a price difference of P2,083 versus P1,562. 

DOH Secretary Teodoro “Ted” Herbosa, who served as special adviser of the National Task Force Against Covid-19 during the previous administration, explained in the hearing that certain items changed their prices over time. 

“So, I guess we need to look at the date that some items are procured because they were changing the cost as the pandemic was ongoing," Herbosa said, to which his predecessor, former DOH secretary Francisco Duque III agreed. 

Quimbo noted it was the committee's first inquiry into possible overpricing related to the P47.6 billion in DOH funds transferred to PS-DBM. 

Regarding the price difference, Quimbo felt that it was significant enough to warrant further questioning. 

"This is the third case. The third case is the situation where pareho-pareho ang brand, pero bakit ang laki po ng disparity in price (the brands are the same, and yet the disparity in price is huge)?" Quimbo said. 

"There’s about a 500-peso price difference. It is what it is. It’s a price difference. So, I’m asking for the details on the dates of the transaction," she said. 

Duque could not provide a direct response, but claimed that the documents pertaining to the timelines of the transaction were with the PS-DBM. "They were the ones who directly transacted with the suppliers," he said. 

Quimbo also questioned the pricing of the test kits in comparison to the global market rates at the time of purchase. 

"And actually sir, ang next question pa nga doon (the next question there is), how much was the price in the world market at the time of that purchase? That’s the next question because it could be as low as $8. ‘Yan ang next question, hindi po ba (That's the next question right)?" Quimbo said, addressing Duque. 

It was also learned during the hearing that PS-DBM handled the transactions with the suppliers, following instructions and specifications from the DOH. 

This system, however, has raised questions about why the DOH did not consolidate its orders to secure better pricing. 

"My understanding is that, this is my layman understanding that instructions to bid would come from the DOH. So meaning to say, sasabihin ninyo ang specification, i-bid niyo na ito, kasi ang tanong is bakit hindi niyo rin pinagsama-sama lahat ng pangangailangan?" Quimbo said. 

(So meaning to say, you will provide the specification, you have it bid out, because the question is why didn't you consolidate the orders?)