Several government officials on Tuesday explained why the Procurement Service-Department of Budget and Management (PS-DBM) is selling face masks and other pandemic supplies to regional and state-run hospitals despite the Department of Health’s transfer of P42 billion funds for the procurement of personal protective equipment (PPEs).
At a Senate hearing, Senate President Vicente Sotto III asked Commission on Audit chairman Michael Aguinaldo about his statement in one of the inquiries at the House of Representatives.
Quoting Aguinaldo, Sotto said the state auditors flagged the inventory management problem with the PS-DBM.
“A lot of supplies were procured in April 2020 at the certain price range kaya lang by September of 2020 medyo nagbagsak ang presyo. So ang problem is they still have a lot of inventories in their hospitals, in their warehouse na hindi nila na-dispose. Now, meanwhile, itong mga regional offices, regional hospitals ng DOH ayaw na kumuha sa PS-DBM kasi sabi nila napakamahal ng sa inyo and we can just go across the street and buy 3 to 4 times less,” Sotto quoted Aguinaldo as saying.
(A lot of supplies were procured in April 2020 at the certain price range but in September 2020, the prices dropped. So the problem is they still have a lot of inventories in their hospitals, in their warehouses because they cannot dispose it. Now, the regional hospitals of the DOH, they refuse to buy from the PS-DBM because these items are expensive compared to those being sold at the streets.)
“Ang gusto ko malinawan, chairman Aguinaldo, bumibili ang mga regional hospitals sa PS-DBM?” Sotto asked.
(I just want to clarify, Chairman Aguinaldo, do the regional hospitals buy from the PS-DBM?)
Aguinaldo answered in the affirmative and tried to explain that the COVID-19 supplies, which were classified as common use supplies and equipment (CUSE), procured by the DBM-PS were different from the COVID-19 supplies that were part of the P42 billion funds transferred by the DOH to the procuring agency.
Vaccine czar Carlito Galvez Jr. clarified that the PPEs that were part of the DOH’s P42 billion transfer to DBM-PS were distributed free to all regional, state-run, and even in private hospitals.
“Yung common use na sinasabi ni COA [chairman] Aguinaldo, separate items. So ‘yung procurement po namin separate po ‘yan dahil immediately dinadala namin agad sa warehouse… libre po ‘yan sa mga regional hospitals at private hospitals po, sir,” Galvez explained.
(The common use supplies mentioned by COA chairman Aguinaldo are separate items. So the procurement of the government [DOH] are being brought to the warehouse and these were distributed free to the regional hospitals.)
Aguinaldo backed Galvez’s clarification.
“Tama po si secretary there are two types kasi meron po yung imprimatur nila na… and it was given free and meron din pong pino-procure through PS-DBM na they have to in effect purchase from PS-DBM. So magkaiba po ‘yun,” the COA chairman said.
(That is right. There are two types of supplies. There are supplies that had their imprimatur and were given free, and the other one being procured through the PS-DBM which, in effect, they have to purchase from the PS-DBM. So those are two different items.)
Still unsatisfied with Galvez and Aguinaldo’s explanation, Sotto asked why do the regional hospitals need to procure their own PPEs from the DBM-PS even though the DOH had already procured P42-billion worth of pandemic supplies through the procuring agency.
Health Secretary Francisco Duque III said the PS-DBM is like a general merchandise store that sells CUSE such as paper clips, ballpens, and the like.
But Sotto argued that the pandemic supplies are not similar to office supplies.
“May pinrocure ang PS-DBM at ‘yun ang china-charge sa float ng mga regional offices and ‘yun ang parang naghe-hesitate daw sila kasi ang laki na ng price difference. Nung una hindi naman daw po ganon but come September malaki na ang price difference. So they were also being cautious sa kanilang finances kasi mas mura nilang makukuha sa labas. So yun ang observation,” Aguinaldo explained anew.
(There are COVID-19 supplies procured by PS-DBM which are being charged against the float of the regional offices and they hesitate to avail them because of the huge price difference. At first, the price difference was not that huge but come September, the prices dropped. So they were also being cautious with their finances because they can buy it for a lesser price from other suppliers. So that is the observation.)
At the latter part of the discussion, PS-DBM chief Jasonmer Uayan reiterated other officials’ explanation on the regional hospitals’ procurement of PPEs from DBM-PS.
“PS has two types of funds. The revolving funds which we use for the CUSE. In the case of DOH, they transferred funds specifically for their own need. So every time we receive a request from DOH, we bought it for them. The items that we bought using our own funds that’s what were selling to the various agencies. That is the clarification,” he said.
Uayan also explained that the regional hospitals refused to buy the face masks that are available with the DBM-PS as part of their CUSE inventory because the procuring agency bought it at a higher price when there is still a scarcity of the supply.
He said the face masks that the DBM-PS procured for various agencies’ CUSE was priced at P13.50.
“Due to sudden price drop in the market, the agencies found it too expensive to buy from our own regional depot,” Uayan said.
The DBM-PS put the contract with the supplier, EMS Group of Companies, on hold until they got a lower bid in December at P2.35.
“The original contract was lowered down from P13.50 to P2.35 . Had it not been the case, Mr. Chairman, we would have an inventory of surgical masks at the price of P13.50. That is not what agencies would be buying from us considering the price drop that happened some time in November to December,” Uayan said.
Sotto said he will leave it to COA to look into the matter but added the PS-DBM’s role in the procurement of CUSE may be subject to committee’s review in aid of legislation.—LDF, GMA News
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