Says transfer of P41-b COVID funds illegal, unjustified
The Office of the Ombudsman filed graft charges against former Department of Health (DOH) Secretary Francisco Duque III and former Department of Budget and Management (DBM) Undersecretary Christopher Lao for supposed illegal fund transfer during the COVID-19 pandemic.
Prosecutors alleged Duque authorized the transfer of P41 billion that was not provided under a memorandum of agreement, while the required certifications of liquidation of previous transfers prior to the subsequent release of funds were not submitted.
“With conscious and deliberate disregard or reckless abandonment of their obligation to ensure that the applicable requirements for the transfer of funds be observed effectively, caused the DOH to abandon, in times of health emergency, its bounden duty to expeditiously acquire the needed COVID-19 goods through direct negotiation with the suppliers,” the Ombudsman noted.
“The illegal, unjustified, and unwarranted transfer of funds caused the consequent imposition of service fee that effectively removed a sizeable amount of money intended for purchase of PPEs, test kits, and other COVID-essential goods requested by medical facilities and DOH offices and bureaus,” it added.
Furthermore, the Ombudsman said Duque and Lao’s actions were highlighted since the illegal fund transfers occurred amid a national health emergency.
“At the time of dire need, the people were looking up at respondents’ offices for relief but have instead entertained suspicions due to their failure to follow the prescribed rules and procedures. Their actions cast the DOH, PS-DBM, and the public service in a bad light,” the Ombudsman said.
The fund was for the procurement of medical supplies for the pandemic, including detection kits, mechanical ventilator, personal protective equipment, and surgical masks, among others.
The Office of the Ombudsman recommended a P90,000 bail each for Duque and Lao.
Duque , for his part, said the case was “unfair.”
“It is unfair and the injustice hurts, but I have full trust and confidence that I will be able to prove my innocence before the Sandiganbayan, a court of law that will clearly see that the transfer of the funds by the DOH to PS-DBM at the time of national public health emergency, when COVID supplies such as PPEs were scarce, was lawful and proper,” Duque said.
“I also have every faith that we will be able to prove that our actions were moved solely by our goal to timely procure the life saving PPEs and other COVID pandemic supplies, for the protection of the Filipinos,” he added.
In June, Duque told a House hearing that former President Rodrigo Duterte knew about the controversial transfer of funds.
ACT Teachers Rep. France Castro questioned Duque about the transfer’s origin.
“Publicly, this was made by the President in our meetings, in the weekly meeting or Talk to the People,” he said.
Iloilo Rep. Janette Garin further inquired about the official instructions behind the fund transfer.
“The question is: Did you unilaterally decide to transfer P47.6 billion to PS-DBM?” Garin said.
“No is the answer. I’m just complying with the rules of the PS-DBM. Again, I do not want to belabor the laws that authorize the PS-DBM to procure (materials) in a state of public health emergency,” Duque said.
He added the decision was based on recommendations from the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF), which he also headed.
Editor’s Note: This is an updated article. Originally posted with the headline “Ombudsman files graft raps vs. Duque, Lao.”
