COA casts doubt on Moalboal medical supplier

CEBU, Philippines — The Commission on Audit has called out the attention of the local government unit of Moalboal in southwest Cebu over its purchase of medical equipment from a “questionable” supplier.

The state auditors in its audit observations and recommendation in 2021 for Moalboal stated that the eligibility of the winning supplier of the procurement of the said medical equipment is “doubtful” since it is not included on the list of registered supplier with License to Operate from the Food and Drug Administration (FDA).

It said that the LGU issued a check amounting to P3.790 million to MJC Medical Supply in September 2021 for the purchase of medical equipment such as the fully automated clinical chemistry analyzer.

The post-audit voucher showed that the disbursement was supported by FDA License to Operate with validity date of until February 26, 2022.

“However, upon verification in the FDA website, there is no record that the supplier MJC Medical Supply has a License to Operate under the Medical Device Industry,” the COA said

“The eligibility of the above supplier as medical device /retailer/ wholesaler/ distributor was doubtful since the supplier MJC Medical Supply was not included in the list of registered medical device manufacturer, trader, distributor and retailer upon verification from the FDA Verification Portal,” the state auditors furthered.

COA asked the LGU through its Bids and Awards Committee to submit the certified true copy of the License To Operate of the said medical device supplier authenticated by FDA.

In the same report, the LGU answered COA's observation saying that the BAC already contacted the supplier and it answered that the change of their registered address may be the cause of why the company is not included in the list of FDA’s portal.

“The BAC assured that they will see to it during post qualifications that the submitted documents from the supplier will be verified in the e-portal or any online platform,” the report said

The BAC submitted the renewed License to Operate from the FDA with a validity period of March 17, 2022 to March 17, 2023.

COA said that FDA may have records of all Licenses to Operate that it approved and issued.

“.. we further recommend that the management request an authenticated copy of the License to Operate or written confirmation from the FDA that such license was indeed issued and valid,” the state auditors said.

COA also reminded the LGU to always follow the rules and regulations when it comes to the procurement of the goods and services.

A License To Operate is granted by FDA for those firms who want to engage in manufacturing, distribution, importation, exportation, sale, offer for sale, testing and transfer of medical services.

“To always ensure the health and welfare of the public, the management should transact with suppliers who have acquired the appropriate licenses such as this one. Also, dealing with this eligible supplier would remove the doubts as to whether the management had connected with the middleman thereby placing reliance as to the negotiation of the most advantageous price for the government,” COA said. —  GMR (FREEMAN)