Ex-health chief Ona indicted over hospital modernization

MANILA, Philippines - The Office of the Ombudsman has found probable cause to indict former health secretary Enrique Ona for graft for his role in the allegedly anomalous hospital modernization program in 2012.  

Ombudsman Conchita Carpio Morales said former undersecretary Teodoro Herbosa and Department of Health (DOH) director for health facilities and service regulatory bureau Nicolas Lutero III would also be named respondents to the criminal case.

All three have also been found guilty of the administrative offense of grave misconduct and have been ordered dismissed from government service.

They were meted the accessory penalties of perpetual disqualification from holding public office with forfeiture of retirement benefits. 

In case they are no longer working in government, the penalty is convertible to a fine equivalent to a year’s salary of the respondent.

Investigation conducted by the Office of the Ombudsman found that in September 2012, the DOH implemented its modernization program for the Region 1 Medical Center (R1MC) in Dagupan City with a project cost of P392.2 million.

Records show that five firms joined the public bidding for the project with two bidders, EM Cuerpo Inc. and Specified Contractors and Development Inc. (SCDI), declared as post-disqualified for failure to comply with the agency’s detailed estimate requirements. 

Aggrieved, SCDI, the second lowest bidder, filed a motion for reconsideration that was eventually denied by the Special Bids and Awards Committee (SBAC). 

On Aug. 23, 2013, a Notice of Award was issued to the third lowest bidder, Northern Builders Inc. (NBI) and no protest as provided under the Government Procurement Reform Act was filed by SCDI.

The aggrieved bidder opted to file a letter-complaint before the Office of the President alleging anomalies in the procurement project, prompting Ona to direct Lutero to conduct a fact-finding investigation on the matter.

On Sept. 13, 2013, Ona allegedly instructed the chief of R1MC, Dr. Joseph Rolando Mejia, to provide an update on the procurement project and three days later, Herbosa sent a letter to Mejia “enjoining him to nullify or set aside the issuance of the Notice of Award to (NBI) and to continue with the post-qualification of SCDI.” 

On Sept. 30, 2013, Ona issued a cease and desist order to Mejia pending investigation of the SCDI complaint and eventually conducted a re-bid for the project in December 2013.

In its decision, the Office of the Ombudsman stated that when SCDI did not file any protest or appeal, “the SBAC’s resolution had become final and respondents could no longer intervene and issue a cease and desist order.”

Morales noted that “while Ona had the power to investigate any infractions or violations committed by its employees including the members of the SBAC, this does not mean that he could simply invalidate and declare null and void the proceedings and decisions made by the SBAC without observing the provisions of RA 9184 (Procurement Law).”

“This office is convinced that Ona, Lutero and Herbosa conspired with one another in giving unwarranted benefit, advantage or preference to SCDI,” her ruling read.

No harm done

Meanwhile, Lutero and Herbosa denied any involvement in the allegedly anomalous hospital modernization project.

In separate interviews, Lutero and Herbosa said the project was cancelled because of questions in the bidding process. 

According to Lutero, there was “no harm done on the government” because the project did not push through and no contract was awarded to any contractor. – With Sheila Crisostomo