Lung Center chief gets 90-day suspension for alleged graft, P150-M plunder

Malacañang has suspended for 90 days Dr. Fernando Melendres, executive director of the Lung Center of the Philippines (LCP), while he is being investigated by the Presidential Anti-Graft Commission (PAGC) for alleged graft and plunder estimated to be more than P150 million.

The graft complaint, filed by the LCP’s medical and non-medical staff, alleged that Melendres procured "presentation banner without public bidding complexed with falsification of documents, falsification of documents in the hiring of an architectural consultant, violation of auditing rules on the drawing of petty cash advances to circumvent the law on public bidding of infrastructure projects, and unauthorized implementation of the reorganization plan unapproved by the board of trustees (of the LCP)."

Melendres was also alleged to have committed plunder by illegally depositing P150 million of the LCP funds into five investment management accounts (IMA) with the Philippine Veterans Bank, which were not listed in the LCP books.

The deposit was alleged to be illegal because government funds should not be put into IMAs.

Melendres also allegedly purchased 98 beds for the hospital worth P2.3 million.

Executive Secretary Alberto Romulo, by authority of President Arroyo, suspended Melendres under Administrative Order 39 dated Sept. 11. Romulo said the suspension of Melendres takes effect immediately upon the LCP head’s receipt of a copy of the order.

Under AO 39, Romulo authorized Health Secretary Manuel Dayrit to appoint an interim officer-in-charge while Melendres is under suspension. Romulo ordered PAGC chairman Dario Rama to formally investigate Melendres.

Romulo ordered Rama to submit to Malacañang a "draft decision" for the approval of the President on the Melendres case.

The secretary of the Department of Health (DOH) serves as the ex officio chairman of the board of trustees of the LCP, which had formed a fact-finding committee that investigated the graft allegations and found "prima facie" case against Melendres.

The LCP board of trustees had set up the fact-finding committee after a group of LCP doctors led by Dr. Jose Pepito Amores, LCP deputy director for hospital support services, filed a string of graft charges against Melendres before the Office of the Ombudsman.

Ironically, Amores had also been ordered terminated by the LCP board of trustees for his alleged lack of a career executive service officer (CESO) rank.

Amores decried his termination, calling it irrational because all senior officials of the LCP, including Melendres, did not possess CESO rank.

Amores said other government hospital directors such as Dr. Enrique Ona of the National Kidney and Transplant Institute and Dr. Ludegerio Torres of the Philippine Heart Center did not have CESO rank.

"Why am I the one being persecuted when I am the one who exposed the anomalies in this hospital?" Amores asked.

He said his persecution by the DOH was suspicious, pointing out that the department had shown reluctance to go after Melendres despite the gravity of allegations against the LCP head.

Amores said the DOH had only recommended the filing of administrative charges against Melendres when they should have immediately filed criminal charges against him.