The Ombudsman has junked the administrative complaint lodged against former Health Secretary Francisco Duque III over the alleged anomalous procurement of P41.5 million worth of Covid-19 medical supplies because he is no longer in the government service.

Duque faces administrative and graft complaints, filed by the Ombudsman on August 2023 and May this year, respectively. 

The case pertains to the purported irregularities in the DoH's transfer of funds to the Procurement Service of the Department of Budget and Management (PS-DBM) for the purchase of Covid-19 supplies and equipment, including RT-PCR detection kits, personal protective equipment, ventilators, face shields, surgical masks, among others to the tune of P41,463,867,117.52.

The payment was made through a series of fund transfers from March to December 2020.

According to the Ombudsman, Duque and ex-PS-DBM undersecretary Lloyd Christopher Lao were both guilty of grave misconduct and conduct prejudicial to the best interest of the service. 

Duque, however, argued that the Ombudsman could no longer hold him administratively liable since he was already separated from the government service at the time it filed the administrative complaint.

Citing a 2011 Supreme Court ruling, the erstwhile DoH chief asserted that a “public official who has validly severed his/her ties with civil service may no longer be subject of an administrative complaint.”

The Ombudsman, however, concurred.

"Following the Supreme Court's pronouncement in Andutan as further clarified ni Jamorabo, this Office is constrained to hold that Duque is no longer the proper subject of an administrative complaint in connection with the irregular fund transfers to PS-DBM during his stint as DOH Secretary," it said.

"Considering that the issues on the administrative charges have been rendered moot, this Office sees no point in belaboring the other arguments relating thereto," the Ombudsman added.

Meanwhile, despite the dismissal of the administrative raps, Duque still faces graft charges along with Lao before the Sandiganbayan.

According to the Ombudsman, the DoH transfer of funds to the PS-DBM to outsource the procurement of medical supplies only resulted in a complicated process, which adversely slowed down and affected the medical service delivery.

Moreover, it pointed out that there is no need to tap the PS-DBM since DoH had the capability and proficiency to undertake the procurement of the Covid-19 supplies through its bids and awards committee.

In May, the Ombudsman also sued Lao and other executives of PS-DBM and Pharmally Pharmaceutical Corp. for graft over the purchase of 51,400 units of RT-PCR test kits in 2020, totaling P4.165 billion. 

Investigation revealed that PS-DBM had three deals with Pharmally—a startup firm with a capital of only P625,000—for the government's pandemic supplies. 

The Ombudsman flagged the transaction after Pharmally managed to secure the lion's share of government deals. 

The Ombudsman earlier said that the PS-DBM and Pharmally were in cahoots enabling the award of a multi-billion worth of contract to Pharmally, notwithstanding the existence of other corporations that are financially and technically capable of supplying and delivering test kits at an equal or lower price. 

The Ombudsman said Pharmally's funds came from its irregular transactions with PS-DBM.