BY PETER TABINGO and GERARD NAVAL
THE Department of Health (DOH) did not comply with laws, rules and regulations in its handling of P67.323-billion government funding released last year to address the COVID-19 crisis, the Commission on Audit said in a report yesterday.
Government auditors said the mishandling of public funds made the work of addressing the pandemic more difficult for the government. They said DOH transactions are now undergoing further scrutiny because of doubts on their regularity and propriety.
“Various deficiencies involving P67,323,186,570.57 worth of public funds intended for national efforts of combating …the COVID-19 crisis were noted. These deficiencies contributed to the challenges encountered… during the time of state of calamity/national emergency,” the audit team said in a 2020 audit report released yesterday.
Health Secretary Francisco Duque III said the funds are all accounted for.
“The P67.3 billion is accounted for. Wala pong kinurakot, inilaan natin ang mga pondong ito para sa ating mga kababayan. (There was no corruption, the funds went to the items needed by our countrymen),” Duque said in a statement.
“Rest assured that the funds allotted to the DOH are all spent for the procurement of test kits, PPE (personal protective equipment), payment of HCWs (healthcare workers) benefits, salaries of HRH (human resource for health), among others,” he added.
Duque also said the accounting of funds in question is being addressed by the DOH.
“The DOH acknowledges the findings concerning these funds, and is currently addressing the said compliance issues and deficiencies,” he said.
“We take our COA findings very seriously and have been working to further improve our processes and controls so that we can serve the public most effectively, especially during this pandemic,” he added.
Based on the breakdown provided in the 2020 audit report, the DOH transferred P42.412 billion to partner agencies for procurement activities or for the implementation of programs but these were not covered by a memorandum of agreement (MOA) or other supporting documents.
Without a copy of the MOA and other documents, COA said said it was left in the dark as to what the procurement was about and whether the funded programs were accomplished or not.
However, even with the billions in funding released last year, the auditors said hospitals and health workers were still left pleading with private donors for badly needed supplies, exposing them and their patients at risk.
“The noted delays in the delivery of the much-needed medical equipment /supplies/devices resulted in delays in the provision of quality health service during the challenging times of the pandemic,” the audit team said.
Pinning the responsibility on the head of the agency, the COA said the secretary of health should direct all operating units to prepare and submit duly signed MOAs and to stop releasing funds to other agencies unless the MOA has been submitted.
Duque was also reminded to “strictly comply with the rules and regulations in the grant, utilization and liquidation of funds transferred.”
UNOBLIGATED
The auditors noted the DOH also left a P11.89-billion pandemic funding unobligated or not assigned to any program or project. This sum was provided under the Bayanihan to Heal as One Act (Bayanihan 2).
Congress had intended the money to “strengthen the Department’s capacity to address the COVID-19 pandemic and further buttressing the health care system” but left idle, the funds did nobody any good.
In its comment to the audit report, the DOH said the amount was supposed to be paid last year as benefits for frontline health workers.
“(M)aterial amount is allocated for the health-related responses such as provision of Special Risk Allowance (SRA) and Active Hazard Duty Pay (AHDP) among others,” it explained.
However, it said the Department of Budget and Management released the special allotment release order for this item only on Oct. 27, 2020 and it was received by the DOH only on Oct. 30, 2020.
In addition, it said the Office of the President issued guidelines for the payment of SRA and AHDP only on Nov. 16, 2020.
Also flagged in audit were delays in the procurement of hospital equipment and supplies worth P3.42 billion; lack of transparency in posting the details of P5.113 billion worth of transactions in violation of guidelines set by the Government Procurement Policy Board; improper documentation and inventory of donations to various hospitals worth P1.406 billion; questionable release of allowances worth P814.25 million; and deficient handling of P734.5 million funds under the Interim Reimbursement Mechanism by various hospitals.
“Most importantly, the billions of pesos in the coffers of the DOH that have remained not obligated and disbursed as at year-end is counter-beneficial to the Department’s continued efforts towards controlling the spread of COVID-19,” the COA said.
“These funds that remained idle as at year-end were not translated to much needed supplies, equipment, and services that cold have benefited both the health workers and the general public during critical times,” it added. — With Raymond Africa
