Senate summons ex-DBM used involved in purchase of ‘overpriced’ PPEs

The Senate questioned the decision of the Department of Health (DOH) to transfer P42 billion of their funds to the Procurement Service office of the Department of Budget and Management (DBM).

The DOH explained that they sought the help of the DBM in purchasing some supplies for the pandemic, such as face masks and face shields.

“PS-DBM has a surplus of these PPEs in their online store… Nag-request kami for them to procure for us,” said DOH Undersecretary Carol Taiño.

But some senators commented that there was no memorandum of agreement signed by the two agencies, and the materials purchased seemed to be overpriced because the face masks purchased cost P27 per piece while the cost of each face shield would reach P122.

“Sobra naman ‘atang specialized nitong binili niyo na napakamamahal, saksakan naman ‘ata ng overpriced,” said Sen. Imee Marcos.

The DOH insists that the items purchased are not overpriced and that the memorandum of agreement between the two agencies is not mandatory if the purchases are “common use items” or supplies used in the day-to-day operations of the government.

“At that time, SRP’s for these items were not yet valid. We were looking at a reasonable price existing at that time,” said DOH Director Paul Guimbarda.

Senate summons ex-DBM used involved in purchase of ‘overpriced’ PPEs

But COA Chairman Michael Aguinaldo opposed it.

“The purpose of the MOA is not just to document the money transfer but also to impose obligations on the entity to whom the money is being transferred,” he said.

According to the DBM, the person who oversaw the transfer and spending of P42 billion from the DOH was Lloyd Christopher Lao, former Budget Undersecretary who resigned in June to apply as Deputy Ombudsman.

“We questioned whether the amount for PPEs were defensible because some people from private sector said it was expensive. He said there were limited items in the local market, the amount was defensible,” said DBM OIC Tina Canda.