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Gordon, Hontiveros to indict Duque in graft case
By Nidz Godino
“Lao accepted said transfer of funds by DOH for the procurement of COVID-19 medical supplies and equipment that are not available in the PS-DBM inventory and notwithstanding non-compliance with aforementioned procurement law, rules and issuances as well as the aforecited accounting and auditing rules on transfer of funds from one agency to another,” Office of the Ombudsman has listed Sen. Risa Hontiveros and former senator Richard Gordon as among its witnesses in the graft case it filed before Sandiganbayan against former health secretary Francisco Duque III and former Department of Budget and Management Procurement Service (PS-DBM) executive director Lloyd Christopher Lao.
Based on charge sheet, Hontiveros and Gordon are among six people eyed by ombudsman as witnesses in the case.
Other possible witnesses are Senate Blue Ribbon Oversight Office Management director general Rodolfo Noel Quimbo, state auditor Raymond Vallejo of the Commission on Audit (COA) Fraud Audit Office-Special Services Sector, PS-DBM Administrative Finance Group officer-in-charge director Arnold James Dupla and Department of Health (DOH) Accounting Division officer-in-charge head accountant Filipina Velasquez.
Ombudsman also included words “and others” so it could present other individuals as witnesses, if necessary.
On Tuesday, ombudsman charged Duque and Lao before Sandiganbayan with one count each of violation of Section 3 (e) of Republic Act 3019 or Anti-Graft and Corrupt Practices Act, prohibits public officials from giving unwarranted benefit, advantage or preference to private party or from causing any party, including government, undue injury.
Case was raffled off to Sandiganbayan First Division, chaired by Associate Justice Maria Theresa Mendoza-Arcega with Associate Justices Bayani Jacinto and Juliet Manalo-San Gaspar as members.
Ombudsman has recommended P90,000 bail bond for each of the accused.
As of yesterday afternoon, Duque and Lao had not posted bail. Court staff of First Division, wished anonymity, said no arrest warrant had been issued as of closing of Sandiganbayan office.
Staff, however, clarified that Duque and Lao may post their bond without waiting for any arrest warrant from the court.
Case stemmed from alleged irregularities in DOH’s transfer of P41.46 billion to PS-DBM at height of the COVID-19 pandemic in 2020.
Fund transfer was supposedly for PS-DBM’s procurement of medical supplies needed by DOH for government’s pandemic response.
Based on charge sheet, prepared by Graft Investigation and Prosecution Officer III Napoleon Regan Malimas and approved by Ombudsman Samuel Martires on Aug. 16, fund transfer of P4.4 billion was not supported by any valid Memorandum of Agreement between DOH and PS-DBM.
Furthermore, ombudsman said fund transfer “did not hasten” implementation of procurement project.
Ombudsman said its investigation also revealed DOH “had capacity and proficiency to undertake procurement” itself.
Ombudsman said DOH transferred funds despite lack of certification that PS-DBM had already liquidated funds received from the department, “in utter disregard” of procurement laws and government auditing rules.
Ombudsman said its investigation also revealed medical supplies and equipment needed by DOH such as test kits, mechanical ventilators, surgical masks, personal protective equipment, nucleic acid extraction machine and cadaver bags were not even in inventory of the PS-DBM.
As result of unlawful transfer, government lost P1.658 billion, representing four percent service fee PS-DBM had charged DOH for supposedly carrying out procurements.
Ombudsman’s investigation on Duque, Lao and other DOH officials stemmed from 2020 COA report and from complaint filed by Hontiveros and Gordon in 2022 following months of hearings by Senate Blue Ribbon panel on the issue.
In its 2020 annual audit report on DOH, COA flagged several “deficiencies” in the health agency’s utilization of P67.32 billion in COVID-19 funds, including unspent P11.89 billion intended for procurement of various medical equipment and supplies and payment of benefits for health workers, and P41.46-billion fund transferred to PS-DBM despite lack of required MOA and other supporting documents.
In their complaint, meanwhile, Hontiveros and Gordon said funds received by PS-DBM from DOH, P11.5 billion was paid to start up Pharmally Pharmaceutical Corp., as well as fund supply of face shields, face masks, test kits and other medical items for the government’s pandemic response.
Procured items were allegedly overpriced while some were already expired upon delivery.
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