A special team of auditors created in the second half of 2024 has recommended the issuance of notices of disallowance against various procurements of drugs and medicines by the Tarlac City government in 2017 and 2018.
COA Chairperson Gamaliel Cordoba issued three COA Office Orders dated August 20, September 23, and October 7, 2024 authorizing the conduct of a Fraud Audit Investigation on the transactions following a series of anonymous letter-complaints received by the commission alleging irregularities.
The team was composed of State Auditor Elizabeth de Vera as team supervisor, State Auditor Chelsea Marie Alcantara as team leader, and Attorney IV Rheymar Ong and State Technical Audit Specialist William Muñoz as members.
Among the findings submitted by the audit team were purchases of medicines at costs exceeding the mandated price ceilings set by the Department of Health through Administrative Order No. 2015-00151 by P7.09 million; purchase of P843,900 worth of medicines not included in the Philippine National Formulary (PNF) that was supposed to ensure safety and efficacy.
Auditors also questioned the use of “Angel” or Anghel” for P35.96 million medical programs in association with the name of Mayor Maria Cristina Angeles; P2.8 million drugs and medicines with incomplete or vague specifications; incomplete documentation in six contracts for medicines and medical supplies totaling P50.83 million that were also deficient in support documents; and unaccounted or missing inventories of drugs, medicines, medical/dental and laboratory supplies worth P24.62 million.
Aside from the city mayor, also recommended to be held liable were the city health officer, the head of the General Services Office, Vice Mayor Genaro Mendoza, nine members of the Sangguniang Panlungsod, the city accountant, city treasurer, inspection officers, and the entire Bids and Awards Committee as well as the BAC-Technical Working Group that proceeded with the transactions despite the red flags including lack of specifications.
Likewise included were suppliers Jyra Med Enterprises and Theya Enterprises.
Based on COA’s rules, fraud audit findings are appealable to the COA Commission Proper.
