THE Department of Health (DOH) failed to spend about P59 billion or 29 percent of its P200.855-billion total budget allotments in 2020, prompting questions from government auditors about the agency’s fund management during a national health crisis.
Had the funds been put to good use, the Commission on Audit (COA) said, it would have helped improve public health facilities, hospital services, and provide adequate protective gear to healthcare workers in the frontlines.
The unspent sum consists of P24.641 billion in unobligated allotments or money that is not assigned to any specific program, project or activity, and P34.484 billion in unpaid obligations or money that was not paid to suppliers, contractors, or as manpower compensation.
This is a separate audit finding from the P67-billion worth of DOH transactions that the audit team tagged as deficient due to several issues including lack of transparency, non-compliance with rules and regulations on fund releases, and irregularities in the procurement processes.
The findings on the P67-bilion fund revived calls — first made last year because of alleged anomalies — for Health Secretary Francisco Duque III to resign or for President Duterte to sack him for alleged incompetence. It also prompted calls for a Senate probe.
Presidential spokesman Harry Roque said the President is “withholding judgment” until the DOH has responded to the COA and the COA releases its final report on the questioned handling of the P67-billion fund,
He also said “there are no sacred cows in this administration.”
The DOH Accounting Division, on the P59-billion unspent funds, acknowledged that the additional notices of sash allocations issued by the Department of Budget and Management specifically for COVID-19 response were not fully use. However, it explained that this was attributable to nature of the transactions involved. It said that for the procurement of big-ticket items like medical equipment and upgrade of facilities, the rules require full delivery before payment can be released.
It also invoked restrictions on travel and commercial activities during lockdowns as well as manpower shortage when some key personnel were infected with COVID-19 as additional reasons that impeded a more efficient processing of transactions.
COA, on the P59.125-billion fund, found P9.118 billion had to be returned to the Bureau of Treasury by the DOH-Central Office.
“The billions of pesos… that have remained not obligated and disbursed as at year-end and funds that were reverted to the national treasury are counter-beneficial to the continuing efforts towards ensuring access to basic public health services, further buttressing the healthcare delivery system, and most importantly controlling the spread of COVID-19,” COA said.
It said the failure of the DOH to efficiently use its allocations is contrary to Proclamation No. 922 issued by President Duterte declaring a state of public health emergency throughout the country, Proclamation No. 929 declaring a state of calamity due to COVID-19, and Proclamation No. 1021 extending the period of the state of calamity.
“All these presidential issuances provided that all government agencies …are enjoined to continue rendering full assistance …and mobilize the necessary resources to undertake critical, urgent and appropriate disaster response measures,” the audit team said.
The national government even ordered various agencies to reprogram, reallocate, and realign savings and other budget items to ensure the pandemic response is given priority.
Auditors said the unspent DOH funds were big enough to make a difference in the government’s efforts to stop the spread of coronavirus.
Sen. Grace Poe filed a resolution seeking an inquiry on the mishandling of the P67-billion COVID response fund
“These funds were provided to strengthen the agency’s health resources in light of the COVID-19 pandemic, but the implementation deficiencies denied our countrymen their right to health at a time when it is most needed,” Poe said in her resolution.
Senate minority leader Franklin Drilon is also pushing for a probe.
“The deluge of deficiencies that the Commission on Audit findings uncovered are alarming and disturbing,” Drilon said adding Duque’s “ineptitude” is putting the government’s pandemic response in great danger.
Sen. Richard Gordon, chair of the Senate Blue Ribbon committee, is not keen on conducting a probe in the middle of a pandemic because focus will be diverted from the pandemic response.
“But if we have to investigate, we have to do it very fast and if they don’t want to cooperate, it will take very long. I don’t want to waste time. I don’t want the doctors, the people running the system to be going out to investigations when they need to be at work,” Gordon said.
Sen. Panfilo Lacson, who has been calling for Duque’s ouster since last year
said the “incompetence” of the DOH in managing its funds only shows that Duque III “doesn’t care about the health concerns of the people who he is supposed to serve.”
Rep. Mike Defensor (Anakalusugan partylist) said the DOH’s “incompetence” has caused more deaths and suffering among the people. — With Jocelyn Montemayor, Raymond Africa and Wendell Vigilia
