A group identifying itself as “Concerned Department of Health Personnel” has filed a complaint before the Office of the Ombudsman against Health Secretary Teodoro Herbosa and Health Undersecretary Randy Escolango, alleging that Escolango's appointment to multiple key positions created a conflict of interest in the Department of Health's (DOH) procurement process.

In the complaint dated June 22, the complainants accused Herbosa and Escolango of violating Section 3(e) of Republic Act No. 3019, or the Anti-Graft and Corrupt Practices Act, as well as committing grave misconduct and conduct prejudicial to the best interest of the service.

The complaint stemmed from two Department Personnel Orders (DPOs) issued in February 2026.

According to the filing, DPO No. 2026-0700 granted Escolango oversight over the Financial and Management Service and the Supply Chain Management Service.

The complainants also alleged that a second personnel order further expanded his role in the department's procurement operations.

“In blatant disregard of standard fiscal checkpoints, DPO No. 2026-1080 designated Respondent Undersecretary Escolango as the Chairperson of COBAC-A. This specific committee holds exclusive jurisdiction over high-value public portfolios, including Drugs and Medicines, Vaccines and other Biological Products, Family Planning Pharmaceuticals, and Herbal Medicines,” the complaint stated.

The complainants argued that the arrangement concentrated key financial, procurement, and logistics functions under a single official.

“This dual configuration gives rise to an absolute, self-policing conflict of interest across the entire lifecycle of public funds,” the complaint stated.

The filing alleged that Escolango's concurrent roles allowed him to oversee budget programming and fund certification, preside over the committee that evaluates and awards procurement contracts, and supervise the post-award distribution and warehousing of procured goods.

“When a subordinate from the Finance Service is forced to evaluate a bid under the direct oversight of their own commanding Undersecretary — who is steering the committee as Chairperson — the independent financial checkpoint required by R.A. No. 12009 becomes an absolute illusion,” the complainants said.

The complaint alleged that the appointments undermined safeguards under Republic Act No. 12009, or the New Government Procurement Act, which the complainants said was designed to ensure independent financial oversight in the bidding process.

“The respondents' actions represent a sophisticated, conscious subversion of procurement protocols,” the complaint read.

“By intentionally neutralizing the statutory boundaries of Section 41.2.2, they replaced transparent public bidding with a self-policing, unverified procurement framework,” it added.

The complainants further alleged that the arrangement weakened protections against procurement irregularities.

‘Because the individual controlling the departmental fund allocations is the exact same individual directing the contract awards, the State is entirely stripped of an independent line of defense against artificial budget inflation, front-loading of contracts, and unvouched disbursements,” the complaint stated.

The group also argued that the setup could discourage competition among suppliers and compromise the government's ability to obtain value for money in public procurement.

The complainants asked the Ombudsman to place Herbosa and Escolango under preventive suspension for six months while the case is being investigated.

They also urged the Ombudsman to conduct a formal administrative investigation into the appointments and, if warranted, hold the respondents liable for grave misconduct, gross neglect of duty, and conduct prejudicial to the best interest of the service.