Canvass of P1.18M in meds quizzed

CEBU, Philippines – The Commission on Audit has questioned the validity of Talisay City government’s canvassing of P1.18 million worth of drugs and medicines last year.

State auditors asked the city government to explain why the canvassing was obtained through “small-value procurement” and done through the same set of suppliers.

COA found out that one of the suppliers even had an owner who was also a stockholder in a competing bidder.

Upon verification of disbursement, the procurement of drugs and medicines was awarded to Sel-J Pharmaceuticals Corp. Other canvassed suppliers were MizpahPharma, Therape and VBM Pharma.

However, COA discovered that the owner of MizpahPharma, a certain Irwin Lacnit, was also a stockholder of rival bidder Sel-J Pharmaceuticals.

In 2013, Therape was also awarded a certificate of distributorship by Sel-J, its rival bidder.

"The situation defeated the purpose of the Procurement Law, which intends to promote competiveness among bidders, in order for the procuring entity to get the most advantageous price for the government," the report read.

The audit team also noted that the suppliers were all based in other parts of the country: Sel-J Pharmaceuticals in Las Piñas City; MizpahPharma in Dumaguete City; and Therape in Malate, Manila; and VMB Pharma in Agusan del Sur.

COA told the city that canvasses and delivery from distant places would entail more costs compared to those done for suppliers within the locality or in nearby areas, such as Cebu City.

State auditors asked Mayor Johnny De los Reyes to let the personnel who were involved in the procurement to explain why the canvass was repeatedly made on the same set of suppliers based in Manila, Dumaguete and Agusan del Sur.

Per audit observation memo dated February 2, 2015, the city government promised to purchase medicines from the Department of Health’s Botica instead of from private suppliers.

Botica serves as a wholesale and distribution hub of low-cost and quality medicines to retail drugstores or hospital pharmacies like the local government units, botika ng barangays, drugstores operated by the cooperatives, and community-based organizations.

COA said that although Botica cannot provide all the requirements of the city, as it sells only those items listed in the Philippine National Drug Formulary (PNDF), it would be advantageous nevertheless to the city to procure available items at much cheaper rates from Botica.

The PNDF is an integral component of the Philippine National Drug Policy aimed at making available and accessible essential medicines of proven efficacy, safety and quality at affordable cost.