Two Department of Health (DOH) officials testified before the Sandiganbayan First Division that the agency possessed the capability to purchase medical equipment independently without routing transactions through the Department of Budget and Management’s Procurement Service (PS-DBM).
The testimonies were delivered during the graft trial of former Health Secretary Francisco Duque III and former PS-DBM Undersecretary Lloyd Christopher Lao regarding the contested transfer of ₱41.46 billion in DOH funds intended for emergency COVID-19 response items.
To demonstrate the health department’s operational history of direct procurement prior to the global pandemic, prosecutors called upon Wafa Bilao of the Health Facility Enhancement Program and Dennis Casimiro of the Health Emergency Management Bureau.
Both witnesses affirmed that the agency had directly managed previous procurements, citing past direct acquisitions such as cadaver bags valued at ₱1,300 per unit.
However, both officials noted during their appearance that they lacked personal insight regarding the executive decisions made by DOH leadership that led to the fund transfers to PS-DBM.
Defense counsel questioned the scope of the witnesses’ testimonies, arguing whether either official was qualified to represent the broader agency’s logistical capacity during an active health emergency.
Attorneys for the defense further asserted that unprecedented global demand caused severe supply shortages, which severely constrained the DOH’s independent purchasing operations.
Bilao acknowledged under cross-examination that acquiring medical inventory grew considerably more difficult amid the height of the pandemic.
Prosecutors maintain that Duque and Lao exhibited gross inexcusable negligence or evident bad faith by authorizing the transfer of billions for test kits, protective gear, and essential supplies.
The state contends that Duque approved the transactions despite knowing the arrangement would fail to accelerate deliveries and that the DOH already had the internal mechanisms required to buy the supplies directly.
Originally brought by the Office of the Ombudsman in 2024, the legal proceedings against the former officials remain ongoing.
Additionally, prosecution lawyers confirmed that former Senator Richard Gordon remains available to offer testimony, though his appearance date has yet to be scheduled.
Gordon previously led the Senate Blue Ribbon Committee inquiry into the controversial procurement fund transfers that formed the basis for the criminal charges.