President Rodrigo Duterte made me do it.
This was the reason given by former Health secretary Francisco Duque lll to explain the transfer of billions of pesos, ostensibly to purchase COVID-19 supplies but which was deemed to be illegal.
In 2020, the amount of PHP47.6 billion was transferred from the Department of Health (DOH) to the Procurement Service — Department of Budget and Management (PS – DBM). Back then, the sum was worth close to $1 billion.
Part of that amount was used to purchase medical supplies from Pharmally Pharmaceutical Corp such as face masks, face shields and other equipment, which were later found to have been grossly overpriced.
Worse, there was no bidding prior to the purchase, contrary to government rules.
Duque said Duterte ordered the fund transfer “because of the public health emergency which he (Duterte) declared sometime in March (2020).”
The House Appropriations committee has been holding hearings on the Pharmally mess after the Commission on Audit (COA) released its findings stating that the DOH to PS –DBM fund transfer was not allowed by law. The Budget department then released funds to Pharmally for the medical supplies in a multi-billion peso contract despite the fact that the pharmaceutical firm was relatively new and was not deemed capable of delivering the goods.
Pharmally was found to have a meager paid-up capital of PHP625,000. Its headquarters was little more than a one-room office in an old building in Pasay City.
Under questioning, Duque said Duterte had ordered the transfer during one of their Cabinet meetings.
Solicitor Gen. Menardo Guevarra, who was Justice secretary during the Duterte administration, told the House committee he could not recall the then president publicly announcing the fund transfer.
Guevarra said it was possible that Duque was mistaken about the transfer being authorized during a Cabinet meeting.
“Frankly, I do not recall any Cabinet meeting where a public statement like that was made by the (former) president, unless he made it publicly before the media,” he said.
One year after the fund transfer, the COA discovered deficiencies in how the DOH managed its PHP67.32 billion fund to battle the pandemic. Those deficiencies added to the challenges that the country faced during the global health crisis.
The shortcomings were caused by failure to comply with pertinent laws, said COA. They also cast doubt on the regularity of transactions, while keeping much needed funds at bay and unspent.
During the Duterte administration, there were several calls for Duque to resign but Duterte never heeded them. He said he had faith in his Health secretary and was also a close friend of Duque’s brother.
This, despite that brother winning multi-million peso supply contracts from the Health department. Duque, however, said his brother had been dealing with the DOH even before he became secretary, besides which he was not in any way connected with his brother’s company.
To recall, the Senate Blue Ribbon committee then headed by Sen. Richard Gordon held an investigation of the Pharmally deal entered into by the PS – DBM.
The probe concluded that there was collusion between government officials and Pharmally executives and recommended that charges be filed against them.
The Senate panel specifically pointed to then PS – DBM head Lloyd Christopher Lao, who is currently facing graft charges, as being behind the questionable contract.
Lao reportedly broke the law when he approved the Pharmally contract, despite the company having foreigners as officials, which is not allowed by law.
But the report was never approved after several senators balked at the conclusion that President Duterte was also to blame and should be charged accordingly.
