By NG Seruela
Former Department of Budget and Management (DBM) Undersecretary Lloyd Christopher Lao said the department did not transfer the ₱42 billion funding for the procurement of COVID-19 supplies following the audit observation of the Commission on Audit (COA) on the Department of Health (DOH).
In today’s (Aug. 20) Laging Handa public briefing, also former head of the Procurement Service (PS)-DBM Usec. Lao explained that the money for the face masks and face shields was “sourced out from DBM and transferred to DOH.” He said that money is usually transferred to the PS-DBM if items for procurement are considered as “common supplies.”
“Hindi po nilipat sa DBM ang pera. The money was sourced out from DBM and transferred to DOH. However, DOH transferred it to PS-DBM, the Procurement Service of the Department of Budget and Management. It is transferred to PS-DBM when the items that you are buying is considered common supplies, common goods like coupon bonds, ballpens, laptops, iyong binibili natin na office supplies – toilet papers, alcohol – those are common supplies that most government agencies procure it through the PS-DBM.”
He pointed out that the PS-DBM is a specialized government agency that its “main purpose” is “to procure” since many government agencies do not have a regular procurement process.
“And PS-DBM has two functions, either they buy under the common supplies or they do procurement under non-common use. Iyong non-common use kasi, hindi siya regular. Like kapag bibili ka ng train, so you have to pass through PS-DBM if you want to kasi medyo hindi niya forte, kailangan ninyo pang mag-training, kailangan ninyo pang mag-set up ng team.”
“So the technicalities would be so much effort and you will only do it once because we buy trains maybe once every five years, ‘di ba. They would rather pass it to an agency who’s more efficient in doing that time and again.”
Lao expounded that during the time of the COVID-19 pandemic, COVID-19 supplies such as face masks and face shields were classified by the Government Procurement Policy Board (GPPB) as common supplies since not only the Health department needed the items.
“PS-DBM already has the authority to buy these items, together with DOH, together with PITC, together with DSWD, together with the LGUs. So all agencies now may procure such items under common goods supply,” he said.
He emphasized that to “ease the burden and to allow more access and more avenues of procuring the said items,” supplies did not suffice the demand, therefore, the DOH “needed help” and “passed on” the budget to the PS-DB, for procurement.
“When it is classified as common use, it can be passed on to PS-DBM po because that’s our forte.”
In relation to this, Lao highlighted that there is pure accountability “with or without” a memorandum of agreement since it is public funds.
“Ang public funds should always be audited. COA did not question it. COA inquired about it because that’s part of the exit conference. Kasi medyo iyong report – I apologize for this – but whatever information that’s going out is not complete. Hindi siya complete, ‘di ba? So, nagtatanong sila bakit walang memorandum of agreement,” he said.
Lao bared that a MOA is only required if the item that a certain agency would request the PS-DBM to procure was considered as a non-common use item such as procurement of trains. However, if it is a common supply, a MOA will not be provided.
“So, alam ninyo non-common supply kailangan ng memorandum of agreement; but if it is a common supply, hindi po kailangan ng memorandum of agreement. Ang ginagawa nila, nagdi-deposit sila ng pera para anytime that they would want to withdraw items technically or buy items for us, we can outright deliver because the money is already available,” he said.
Meanwhile, Lao confirmed that he is willing to attend the hearing of the Senate Blue Ribbon Committee.
“Of course, it’s my responsibility and I am willing to attend to shed light on the matter. I believe the objectivity of the Senate Blue Ribbon Committee headed by Senator Gordon that it is fair and just and it is a proper and appropriate avenue for me to shed light on what actually transpired.” -rir
