The Sandiganbayan First Division on Monday formally opened the graft trial of former Health Secretary Francisco Duque III over the controversial transfer of more than ₱41 billion in Department of Health (DOH) funds at the height of the COVID-19 pandemic.
The graft case stems from the 2020 transfer of approximately ₱41.46 billion from the DOH to the Procurement Service of the Department of Budget and Management (PS-DBM). The funds were intended for purchasing pandemic-response items, such as face masks, medical equipment, and COVID-19 testing kits.
According to the Office of the Ombudsman, routing the funds through the PS-DBM caused procurement delays. Investigators pointed out that the procurement agency lacked the technical expertise required to properly evaluate specialized medical supplies.
The Ombudsman argued that the DOH already possessed the necessary knowledge and capability to handle the specifications and procurement of the needed medical items.
Furthermore, prosecutors stated that the medical goods bought through the PS-DBM did not qualify as “Common Supplies and Equipment,” which is a standard requirement for government agencies to utilize the procurement unit’s services.
The anti-graft body also highlighted that the PS-DBM charged a four percent service fee for the transaction, which cost the government an estimated ₱1.6 billion.
The trial is the most recent development in the legal actions surrounding the government’s pandemic-era procurement activities, which have faced intense scrutiny and investigation over the past few years.