The COA’s report on the DOH
Earlier this month in August 2021, the Commission on Audit (COA) flagged the Department of Health (DOH) for “deficiencies” in its handling of COVID-19 funds. These deficiencies amount to a total of 67.32 billion, 66.28 billion of which is due to the “non-submission of documentation or supporting papers, which the DOH may still submit” until September 27. The 2020 audit report notes that these discrepancies likely aggravated the state agency’s pandemic response.
Listed below is a breakdown of the P67.32 billion worth of deficiencies:
P42.41 billion - fund transfers to procurement partners and implementing agencies without memoranda of agreement
P11.89 billion - unutilized funds intended to improve the DOH’s capacity to address COVID-19.
A large part of this is from the "Bayanihan 2" law, which includes allocations for health workers' special risk allowance and hazard pay, among others
P5.038 billion - incomplete documentation in a number of contracts concerning the procurement process
P1.88 billion - deficiencies in posting of procurement information
P994.51 million - incomplete submission of documentary requirements
P619.05 million - procurement of goods and services sans warranty clause
P611.24 million - defects in Omnibus Sworn Statements involving procurement contracts
P401.35 million - non-provision of adequate technical specifications in contract documents
P194.40 million - procurement disadvantageous to the government
P130.12 million - non-preparation of updated annual procurement plans and defects in it
P81.43 million - inappropriate mode of procurement
P10.46 million - procurement of Critical Supplies and Equipment outside DBM's procurement service without Certificate of Non-availability of Stocks
P3.42 billion - unaccomplished rollout of foreign-assisted projects
P1.521 billion - unutilized Healthy and Active Lungs (HEAL) project funds.
This project is supported by USAID
P1.40 billion - unaccounted in-kind donations
P734.5 million - lapses in the management of Interim Reimbursement Mechanism funds
P539.29 million - COVID-19 allowances paid to workers in healthcare due to non-compliance with rules on the grant
P214 million - given to unqualified recipients
P54.45- paid during periods without ECQ
P6.49 million - overpayment
P275.90 million - unauthorized meal allowances given to operating unit personnel in the form of cash allowances, gift certificates and grocery items
These funds were intended to be used on life insurance, accommodations and transportation
P74.43 million- medical equipment and supplies
P69.94 million- unutilized due to a lack of proper procurement planning
P4.49 million- liquidated damages
P98.40 million- cash advances and petty cash by numerous DOH operating units
P11.66 million - death and sickness compensations with insufficient or non-existent documentation
P4.88 million - unpaid claims from financial aid beneficiaries
Speaking of the report, Health Secretary Francisco Duque III assured the public that “no money went into corruption.” Additionally, he vowed to disprove the deficiencies outlined by the COA through a collation of documents. It is important to note that the COA “does not mention any findings by the auditors of funds lost due to corruption.”
In addition to the sums stated earlier, the COA has also flagged the DOH for its failure to obligate P306.73 million of its disaster risk reduction and management (DRRM) fund. They only utilized 84.71% of its Health Emergency Preparedness and Response Fund, 86.98% of its Quick Response Fund, and 76.39% of its Calamity Fund.
President Duterte’s Response
With regards to the allegations faced by the DOH, the Palace expects a "comprehensive" and "clear" response from the agency. The House of Representatives has also met with the COA for a briefing on the alleged deficiencies, confirming their involvement in the case as the funds are among those provided by the Bayanihan laws.
During a pre-recorded public address on August 16, President Rodrigo Duterte urged state agencies to ignore the COA’s reports, stating "huwag mong sundin 'yang COA. P***** i** 'yang COA-COA na 'yan. Wala namang mangyari diyan.” Further, he prompted the COA to refrain from publishing reports on ongoing work as doing so connotes the presence of corruption within government departments. Presidential spokesman Harry Roque asserted that the President did not intend to threaten state auditors but to express “frustrations.”
Duque asserted that he will resign from his post once he has cleared the DOH of the COA’s findings. Initially, Duterte refused to accept Duque’s resignation but later backpedaled stating that he would accept it if he quit “voluntarily.”
Duterte’s continued support for Duque directly contrasts his recent dismissal of National Electrification Administration (NEA) administrator Edgardo Masongsong due to alleged corruption. Masongsong took a similar stance to Duque, saying “I have fully cooperated with the PACC – fully confident in the knowledge that these allegations are baseless and that if granted due process and the opportunity to defend myself, I can establish that I am innocent of any wrongdoing.” It is also worth noting that during his time as an administrator of the NEA, the agency received, from the COA, its highest audit rating twice.
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