DOH explains all P67.3B funds flagged by COA, utilized for public health, documentary compliance ongoing

DOH Usec Vega says in the midst of COVID-19 crisis, submission of some paperwork delayed so as not to compromise lives of public

Screenshot of PCOO video

 

(Eagle News) – The Department of Health (DOH) explained to President Rodrigo Duterte how it is complying with the reported deficiencies in documents on the P67.3 billion earlier flagged by the Commission on Audit (COA).

The DOH also found a sympathetic ear in President Duterte who said that he understood the situation of the health department. He also criticized COA for releasing its audit report even though the subject funds are still in the process of documentation amid the pandemic.

Health Undersecretary Leopoldo Vega explained how the DOH is complying with the COA requirements.

“As of today, out of the 13 deficiencies, five were already resolved; three were partially resolved; and the remaining five are currently being complied,” he said.

Screenshot of PCOO video of Aug. 16, 2021 “Talk to the People.” (Courtesy RTVM)

“COA flagged that our transfers to PS-DBM (procurement service-Department of Budget and Management) for the procurement of PPEs, testing kits, medical supplies, and other hospital equipment for COVID-19 response were not covered by Memorandum of Agreement.

-Properly coordinated non-attachment of MOA-

Vega told President Duterte that the non-attachment of the MOA has been coordinated and consulted with the DBM.

“Non-attachment of MOA was coordinated and consulted with PS-DBM and it was agreed by the saying that non-attachment of MOA has legal basis since the items procured were considered as commonly used supplies,” he said during President Duterte’s “Talk to the People” on Monday, Aug. 16.

Vega cited GPPB (Government Procurement Policy Board) Resolution No. 03-2020, which approved “the adoption of efficient, effective and expedient procurement procedures during a state of public health emergency.”

“Constant coordination with the procurement agencies to ensure that needed supplies are delivered at the possible time. To date, a total of P31 billion worth of commodities was reported by DBM as delivered,” he said in his report.

-Continuing appropriations for 2021-

He said that the unobligated allotment of P11.8 billion from Bayanihan 1 and 2 including foreign loans as of December 31, 2020 are composed of government funds of P7.1 billion and foreign loans of P4.7 billion. P5.1 billion of the GOP or government fund was “considered as continuing appropriations for the year 2021.”

Vega explained that of June 30, 2021, P4.2 billion or 83 percent of this have been utilized as payment for the salaries of emergency hired health care workers, and some were “used to pay for benefits for our health workers.” He cited the “special risk allowance (SRA), death and sickness compensation, procurement of needed medicines and medical supplies in line with the pandemic.”

He said that P510 million “remains valid for utilization until December 31, 2021.”

-DOH: Funds did not go to waste-

“As to the foreign-assisted projects, reissuance of special allotment release order (SARO) from the DBM are to be requested to supplement the funding requirements in line with COVID response. Hindi po nasayang ang mga pondong ito,” the DOH official said.

Vega said that the deficiencies in procurement, documents and procedures have been “partially resolved.”

P2.48 billion mentioned deficiencies was already addressed by the Procurement Service of the Central Office, he said.

“For the remaining P2.52 billion, the DOH operating units concerned were given directives to immediately comply with the COA recommendations,” Vega said in his report to President Duterte.

He said that the DOH Internal Audit Service is also reviewing transactions pertaining to the Bayanihan 1 and 2 funds.

-List of donations in kind to gov’t hospitals already submitted-

Vega explained that the government-retained hospitals which received donations last year have already provided COA with the list of these donations that amounted to P1.4 billion.

These include the Jose Reyes Memorial Hospital, Tondo Medical Center, and San Lazaro Hospital which earlier missed to submit the summary report of the list of donations received as of Dec. 31 last year.

-Meal benefits converted to cash for health workers-

Vega also said that the DOH had to provide meal benefits in cash equivalent to its health workers since the meals in kind provided for health workers usually go to waste or get spoiled since because of the pandemic, they are not usually eaten immediately due to the busy schedule of health workers.
COA had flagged DOH on the P275 meal allowance as “unauthorized.”

“In providing meal benefits, our health facilities had to be creative especially as our healthcare workers bemoaned the provision of meals in the literal sense. Napapanisan sila ng pagkain, hindi nakakain ssa tamang oras, at nasasayang lamang kung pagkain ang ibinibigay ng ating hospitals,” he said.

“The DOH sought the approval of the Office of the President to provide the meal benefits through other forms and OP has listened and approved provision in cash equivalents. Hence, this COA observation must be considered as resolved,” he noted.

-Observations on P74M on medical supplies “mostly resolved”-

COA also flagged the P74 million worth of medical equipment and supplies for COVID-19 response of various hospitals that remained unutilized at the end of the year 2020.

Vega said that “these observations were mostly resolved.”

“While waiting for completion of COVID-19 wards, some equipment were used by other wards of the hospital. We believe that our hospitals should also be given leeway to adjust their operations kung saan po ang pangangailangan. Nonetheless, we have asked the concerned units to respond to this,” he said.

Vega also said that COA flagged DOH implementing units that had to go through “emergency procurement process” but that some deliveries were delayed. This is already beyond the control of these units, he said.

“These operating units acted fast and we believe that the ensuing delay is beyond their control. However, we continue to remind them that they should strictly enforce delivery dates for such vital supplies and equipment from their suppliers,” he said.

-Leeway during public health emergency –

The DOH official also explained that the COA findings were “more of documentary issues” and since the country is in the middle of a public health emergency, complying with the documentary audit requirements could not be immediately done as all the DOH units are up to their neck in the work of dealing with the COVID crisis.

“Some are already resolved while others are ongoing compliance. We are in the public health service emergency situation. Thus, the Department of Health operating units compelled to this sort of action so as not to compromise the lives of the public,” he said.

“Nevertheless, the concerned operating units commit to comply with the COA recommendations on the submission of required supporting documents,” Vega added.

(Eagle News Service)

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