DOH didn’t use P6.65B fund for COVID-19 response – audit

- Advertisement -

THE Department of Health (DOH) failed to use P6.65 billion of available funding for coronavirus disease (COVID-19) response in 2021, including more than P2 billion in foreign loans intended for upgrading the capacity, readiness, and equipment of public health facilities.

In a report released on August 16, the Commission on Audit noted that the DOH received a P104.546 billion purse for COVID-19 related programs and activities, out of which P97.897 billion was obligated in 2021 leaving P6.649 billion unobligated.

Unobligated funds refer to money not tied with any contract at the end of the fiscal period.

- Advertisement -

The COVID-19 funds represented 41.64 percent of the P251.067 billion agency allotments last year.

Out of the obligated P97.897 billion, the health department also had P23.656 billion undisbursed or not released as payment as of yearend of 2021.

A breakdown of the unobligated P6.649 billion funds showed that P5.364 billion lapsed by the end of 2021, including P1.367 billion proceeds of loans from the Asian Development Bank (ADB) for the Health System Enhancement to Address and Limit (HEAL) COVID-19, and P1.013 billion from the World Bank under the Philippines COVID-19 Emergency Response Project (PCERP).

The ADB loan was supposed to be used to strengthen existing facilities and mechanisms to control COVID-19 through the procurement of medical equipment and supplies and upgrading laboratories and isolation facilities at 17 DOH hospitals throughout the country.

However, the project envisioned to bolster testing, surveillance, infection prevention and control, and treatment while enhancing preparedness and resilience of the public health system to handle future threats failed to materialize.

On the other hand, the WB-PCERP was aimed at improving the country’s capability to “prevent, detect and respond to the threat posed by COVID-19 (Coronavirus)” and strengthen national systems for public health preparedness.

The project has four components: to strengthen emergency COVID-19 health care response, strengthen laboratory capacity at national and sub-national level to support Emerging Infectious Diseases (EIDs) Prevention, Preparedness, and Response; implement Management and Monitoring and Evaluation, and create a Contingent Emergency Response (CERC) for prompt response to a crisis or emergency.

But like the ADB-HEAL, the WB-PCERP was not implemented.

However, the audit team noted that a P643.4 million allotment from the ADB-HEAL was reissued by the Department of Budget and Management on March 24, 2022.

Verification by state auditors likewise showed Centers of Health Development (CHDs) and DOH operating units (OUs) also failed to use sub-allotments totaling P2.481 billion.

“The substantial unobligated sub-allotments indicate that releases of funds made by the DOH may not be based on the needs of the CHDs and OUs or without carefully considering their absorptive capacities,” the COA said.

Among the reasons cited by various DOH operating units and CHDs for the failure to obligate available funding were failed procurement, delays in the billing of contractors, delayed submission of technical specifications for planned procurements, approved budget was excessive, funds released for the Special Risk Allowance of hospital personnel exceeded what was needed, and unimplemented projects.

The DOH Central Office and the affected CHDs have been asked to justify the low utilization of funds and to submit their respective catch-up plans.

“It should be stressed that the appropriations given to the DOH were based on the budget proposals which it vigorously defended during budget hearings. The failure to fully utilize the legislated budget could mean that the DOH had set ambitious targets… without carefully considering its own absorptive capacity,” the COA said.

Author

- Advertisement -

Share post: