THE Commission on Audit has asked the provincial government of Pampanga to justify the purchase of P14.14 million worth of medicines and medical supplies from three suppliers after discovering the price per item exceeded the Department of Health’s Price Index.
A comparison between the quoted price per item on the purchase orders and DOH Price Index showed a total cost difference of P5,453,800, prompting government auditors to raise questions why the province failed to negotiate for a better price.
A review of the journal entry vouchers for procurement transactions last year showed the province bought 1,000 gallons of 70 percent isopropyl alcohol at P750 per gallon or a total of P750,000 on April 28, 2020.
The supplier was identified as 777 Red Pharma Inc.
According to the DOH Price Index, the item should have been no more than P520 per gallon. By their calculations, the audit team said the province could have saved P230,000 if the DOH pricing was observed.
Pampanga also purchased 200 thermal Scanners at P4,800 each and 2,400 protective goggles at P217 each also on April 28, 2020. The report named Steritex Medical System as the supplier.
The COA noted that per DOH pricing the thermal scanner was assigned a tag price of only P4,500 while the protective goggles were supposed to cost just P37 each.
With the transaction cost of P960,000 for the scanners and P520,800 for the goggles, auditors said the combined price difference amounted to P148,800.
The biggest of the three transactions was the procurement of 100,000 tablets of chloroquine phosphate 250mg (1,000 boxes at 100 tablets per box) worth P11.975 million from Sigma Pharma International Philippines, Inc.
Based on the purchase order dated May 4, 2020, the price on delivery was P119.75 per tablet while the DOH price index had the same item priced at between P59 to P69 per tablet.
Computing the total cost based on the higher DOH price, the transaction should have been only P6.9 million or a difference of P5.075 million.
The COA noted that as early as April 15, 2020, the DOH had already issued Department Memorandum No. 2020-0144 reiterating the updated list for the “price freeze” on essential emergency medicine and medical devices due to the COVID-19 pandemic.
Auditors pinned the blame on provincial officials in charge of the procurement.
