6 public hospital execs face graft raps

MANILA, Philippines - The Office of the Ombudsman has indicted six officials of a state-run hospital for changing the terms of payment in the acquisition of a medical equipment worth almost P45 million in 2005.

Ombudsman Conchita Carpio-Morales affirmed the finding of probable cause for graft charges against Quirino Memorial Medical Center (QMMC) chief II Rosalinda Arandia as head of the procuring entity;  Bids and Awards Committe (BAC) vice chairman Angeles de Leon; BAC members Milagrina Jacinto,   Michael Raquel, executive committee (Execom) members Floserpina Yanguas and Luz Padua.

Records showed that on Apr. 25, 2005, three prospective suppliers submitted their bids for the installation, supply and delivery of a magnetic resonance imaging (MRI), with Fernando Medical Enterprises Inc. (FMEI) submitting the highest bid of P44.998 million.

In its bidding documents, the QMMC said that full payment shall be maid upon the complete delivery and acceptance of the MRI subject to the release of the budget from the Department of Budget and Management.

On June 7, 2005, the BAC issued a notice of award to FMEI with 30 percent downpayment upon issuance of the purchase order, 30 percent upon the delivery of the unit and 40 percent upon the commissioning of the equipment.

But on Sept. 15 2005, the Execom issued a committee resolution, changing the terms of payment, allowing a 15 percent downpayment for the cost of the infrastructure component of the project. FMEI received P16.4 million as advance payment.

The Ombudsman said the hospital officials "applied two different sets of rules on payment to the entire MRI project -- the rules on procurement of infrastructure projectss that they used as their justification for the downpayment and progress payments, and the rules on procurement of goods-- when only the latter should apply...".

The Ombudsman added that bidding documents clearly indicated that the project involved procurement of goods and that the BAC " cannot feign ignorance about the QMMC bidding documents not allowing any advancement payments prior to the completion of the MRI project."

It dismissed the criminal case against BAC chairman Roberto Dalmacion in view of his death in 2007, while the case against accountant Melanie Lomotan was junked for lack of probable cause.