Thread by @cnnphilippines

THREAD: The House Committee on Good Government and Public Accountability investigates the DOH's purchase of allegedly "overpriced" medical, health equipment vs. COVID-19 bit.ly/3CbScBJ

Updates by our digital producer @pplmanuel

DOH Sec. Francisco Duque III vows to "do all we can" to address relevant COA findings: This is in the hopes this no longer divides our people, casts doubts; instead unifying us in our fight against a ravaging pandemic

COA chairman Mike Aguinaldo: Wala sa COA report ng PS-DBM na may overpricing. The observation's related more to inventory management than overpricing.

Warren Rex Liong is present in the hearing: I am here not as deputy ombudsman, but in my capacity as former PS-DBM director.

Liong is among the individuals the DOJ included in its immigration lookout bulletin order bit.ly/3EmwP2K

House panel chairman Rep. Michael Edgar Aglipay to Liong: Kung makarating ang kasong ito sa Ombudsman, what will be your participation in that case since you're part of the accused?

Liong: There's no conflict of interest. The Overall Deputy Ombudsman does not handle cases involving high-ranking officers

Rep. Aglipay: Nevertheless, you're still part of the organization. Don't you think you should inhibit in case makarating diyan?

Liong says yes: If for any reason it comes to my desk, I will voluntary inhibit

Liong says suppliers under negotiated procurement were chosen based on ability to deliver as soon as possible, offer the lowest prices based on quotations, and whose items are compliant with DOH's technical specifications.

Liong maintains the PS-DBM conducted a market survey in determining the lowest price quotation despite not being stated in Bayanihan 1.

Liong says PS-DBM was able to protect govt's, public's interest in its purchase of face masks, PPEs. He says they only made payments to suppliers after the items were delivered, inspected, and accepted.

Liong presents a table of suppliers of face masks who made deliveries to govt during onset of pandemic: Wala pong ghost purchases.

Liong on expedited procurement during pandemic onset: The legislative department gave us Bayanihan 1, exempting the procurement from everything that is RA 9184.

Rep. Aglipay: What do you mean from everything? So waived na [RA] 9184?

(1/2)

Liong: That is correct. The word used is as exemption from [RA] 9184 and other relevant laws. (2/2)

Rep. Aglipay asks Liong if he's close to Sen. Bong Go, to which he says no.

Liong: Hindi po. I was never under him.

Liong also explains he served as consultant to President Rodrigo Duterte during his term as Davao City vice mayor.

Rep. Aglipay asks Liong if there are any "big" personalities from the Palace who influenced PS-DBM to choose Pharmally for mask deliveries, award them contracts.

Liong says no.

Rep. Johnny Pimentel: Every time an agency purchases services/goods using govt funds, it must conform to RA 9184. Di pwede bumili ang ahensya o local government kung di susundin ito...is that correct?

COA chairman Aguinaldo: As a general rule, tama po yun. Dapat may compliance with RA 9184.

https://twitter.com/cnnphilippines/status/1437989391180328961

Rep. Pimentel: Based on provisions stated in Bayanihan 1, they can proceed with emergency procurement and it's still legal?

COA chairman Aguinaldo says yes.

Rep. Pimentel: Kailangan ba may 3 bidders o quotations? (1/2)

COA chairman Aguinaldo: Yung normal process, may canvassing. Pero dito sa GPPB circular, wala na yung requirement of having this. Ang nangyayari diyan, you have to find the most advantageous price in the market at factor of being able to deliver. (2/2)

Liong clarifies of the ₱42B transferred by DOH to PS-DBM, about ₱8.8B was awarded to Pharmally Pharmaceutical Corp. in 2020 and another ₱2.9B this year.

Liong adds the remaining portion of the ₱42B was awarded to other manufacturers.

Ex-DBM Usec. Christopher Lloyd Lao reports Pharmally only provided 20% of the total quantity of PPE sets demanded by gov't.

NTF Against COVID-19 chief implementer Carlito Galvez Jr. says Pharmally did not use a C-130 plane to deliver medical supplies purchased by gov't.

Galvez: Pharmally ang nagdala ng supplies sa Metro Manila, Cagayan De Oro, Davao at Cebu.

Liong says inspection of supplier's warehouses not a requirement in all procurement modes.

Liong says "no limitation" on contracts a procuring entity can award to a particular supplier: We can award as much as the corporation wins.

Liong denies PS-DBM's preference for any entity during procurement: Nung simula ng pandemya, hirap ang supply sa Pilipinas kaya we had to go to China directly. Karamihan ng face masks, sa China rin kinukuha.

Liong explains he hasn't been connected with PS-DBM since December last year.

Liong on Senate probe into DOH's handling of COVID-19 response funds: Di pa po ako natatawag sa Senado, although I've been joining the hearing.

Liong: Unang pagkakataon po ito para ma-clarify ko ang mga kwestiyon.

Deputy Speaker Rep. Rodante Marcoleta: Ibig sabihin, pinipili po nila [Senate] gusto nila tanungin?

Liong: Maaari po.

Rep. Marcoleta asks COA supervising auditor Rhodora Ugay why the Senate is still probing the purchase of allegedly overpriced COVID response items despite no mention of overpricing in the COA report.

COA's Ugay says she does not know why. Rep. Marcoleta: Tinatanong lang naman kita..di ka naman makukulong sa opinyon.

https://twitter.com/cnnphilippines/status/1438002955660136449

Rep. Alfredo Garbin: The lowest price of the winning PPE supplier was ₱1,900. Do you think that's a reasonable price?

DOH Sec. Duque: Yes, your honor.

DOH Sec. Duque on expedited PPE procurement: Kung di tayo agad bumili, malamang marami nagkasakit, nagkahawaan, na-isolate, na-quarantine, na-ospital, na-intubate. (1/2)

DOH Sec. Duque on expedited PPE procurement: Ang pinakamabigat sa lahat, pwedeng marami pang namatay. Kaya di pwedeng pabayaan natin, maghihintay tayo. Di pwedeng dahilan 'yun. (2/2)

Rep. Garbin: Did gov't crowd out local firms in favor of foreign suppliers like those from China for the purchase of needed supplies in early 2020?

DOH Sec. Duque says no.

DOH Sec. Duque is asked to elaborate his answer: The DTI, DOH, PS-DBM really wanted we support local manufacturers. It's for this reason that EMS was awarded a contract sometime in April, however they couldn't deliver then.

COA supervising auditor Ugay: We audited only the transfer of funds from DOH to PS-DBM so we will not be able to see any overpricing. That's why we don't have any observation on that.

Rep. David Suarez: In the Bayanihan law effective March 25 [last year], special provisions were indicated so we can effectively, efficiently address the COVID pandemic, provide ample protection to health professionals.

Rep. Suarez: Maliwanag na nung earlier part ng pandemya, kulang sa face mask, face shield, PPE. Following the law of supply and demand, sadyang mataas presyo nung panahong 'yun kumpara ngayon.

PS-DBM operations director Jolas Brutas reports PPE sets cost ₱1,700-₱1,900 each during the pandemic's onset. This year, these are procured at around ₱900-₱980 per set.

He also attributes the decrease in prices to law of supply and demand.

COA chairman Aguinaldo on PS-DBM report: Ang nangyari dito, the inventory management issue does not involve the ₱42B na tinransfer ng DOH.

NTF chief Galvez: Malinis po lahat ng ating procurement, yun ang directive ng Presidente.

Rep. Edgar Sarmiento: If ever you have specific evidence brought about by current issues, the best thing for us to do is address things in its proper forum. That is through the judiciary.

Pharmally executive Linconn Ong: For masks, meron kaming good payment terms from our suppliers. We can get masks then deliver to govt, later on pag nabayaran na kami ng gobyerno, babayaran na namin sila.

House committee head Rep. Aglipay announces the deliberation proper is over, interpellations to be continued in next week's hearing.

Rep. Aglipay: I take offense in the Senate showing pictures that Michael Yang is beside the President and he [Yang] is a drug lord.

Rep. Aglipay suspends the hearing until next Monday.