THE World Bank and the Asian Development Bank (ADB) have asked for a special audit on how the Philippine government spent money it borrowed from these institutions for the procurement of COVID-19 vaccines.
This was disclosed yesterday by COA Commissioner Gamaliel Cordoba when asked by Senate deputy minority leader Risa Hontiveros to give an update on the audit of the COVID-19 vaccines procurement of the government.
Cordoba gave the assurance that COA will not let the government vaccine procurement go unaudited.
“Your honors, you have our commitment na hindi po kami papayag na hindi po ma-audit itong government expenditure na ito, lalo na yung mga nagpa-utang sa atin — which is the World Bank and the ADB — ay nagpapa special audit para dito (Your honors, you have our commitment that we will not allow the government expenditure [on the vaccine procurement] be left unaudited especially that those who have lent us money — the World Bank and the Asian Development Bank — have requested a special audit regarding this),” Cordoba told a Commission on Appointments panel which tackled his appointment as COA chairman.
Hontiveros said COA has the power to examine and audit all transactions of government agencies and government-owned or -controlled corporations. The Department of Health, one of the agencies in charge of COVID-19 vaccines procurement, is not exempted even if the purchases are covered by non-disclosure agreements (NDAs).
“As of this month, the COA has yet to audit the 2020 and 2021 government procurement of vaccines due to the non-disclosure agreements that were entered into by the Philippine government and the vaccine suppliers,” Hontiveros said.
She added the information the public has on the amount of vaccines procured was obtained through news reports “as there was no official information from the DOH and DOF.”
“The NDAs also infringe on the Constitution which mandates the COA to audit government expenditures,” she added.
Cordoba said COA “has actually” coordinated with the resident auditor of the DOH based on a request of the health department itself asking state auditors to conduct a special audit of the vaccine procurement based on the mandate given it by the World Bank and the ADB “because of the loan that was given to us for the purpose of procuring vaccines.”
Cordoba said then health secretary Francisco Duque III prevented the DOH from furnishing COA copies of documents on the vaccine procurement, citing as reason the NDA entered by the government with vaccine suppliers.
“However, the DOH po at that time, si Secretary Duque, wrote to us stating that hindi po sila makakabigay ng mga dokumento na ito because they have an NDA with the suppliers (However, the DOH at that time, Secretary Duque wrote to us stating that they cannot provide us the documents because they have an NDA with suppliers),” Cordoba said.
Cordoba said COA sought the opinion of its Legal Department regarding Duque’s response “but our legal office said that the COA is not bound by the NDAs.”
He said the COA will now send a demand letter to the DOH for it to give the agency the documents, otherwise the agency will issue a notice of suspension “and go through the process of disallowance” aside from other legal steps the agency will have to take against DOH for non-compliance with its request, including issuing a subpoena to compel DOH or DOF to give COA a copy of the NDA.
Cordoba said COA resident auditors are coordinating with the DOH to get copies of contracts and other documents relevant to the procurement of COVID-19 vaccines.
If the DOH still would not give the documents, he said, the COA proper level will send a letter, and then issue a notice of suspension and go through the process of notice of disallowance that will continue with other legal processes which may include the issuance of subpoena.
Cordoba said COA will have to observe processes in asking for the documents to show DOH its actions are not compliant with auditing rules.
According to the Department of Finance website, the Philippine government has raised $22.55 billion in budgetary support financing from the ADB, WB, and other financial institutions and foreign currency denominated global bonds for COVID-19 response as of Jan. 14, 2022.
Aside from that, grant and loan financing amounting to $3.25 billion have been contracted in support of various projects implemented by agencies involved in COVID-19 response.
News reports said the government has raised P300 billion to buy COVID-19 vaccines but COA has yet to come up with official figures.
Sen. Francis Escudero, in a budget deliberation earlier, sought a detailed audit of the vaccine procurement.
Sen. Juan Edgardo Angara, Senate finance committee chairman, has said what was audited was the inventory of vaccines bought and the use of the vaccines.
