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Ombudsman dismisses hospital execs for ‘grave misconduct’

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THE Office of the Ombudsman ordered on Tuesday the dismissal from the service of three officials of the  East Avenue Medical Center for grave misconduct. 

Ordered dismissed from the service by Ombudsman Conchita Carpio-Morales were hospital director Rolando Cortez, finance management officer Marietta Cruz and chief administrative officer Jose Calixtro for their alleged involvement in the anomalous procurement of medical supplies and equipment in 2006. 

The EAMC reportedly procured medical supplies worth P10,353,276.75 without a public bidding.  

The procurement was broken down and split into 47 small purchases with an amount not exceeding P250,000 each and awarded only to two suppliers.   

In addition, the EAMC procured 20 air-conditioners, 13 exhaust fans worth P450,950 in January 2006. 

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This time, the procurement was split into two small purchases in an amount not exceeding P250,000 each and awarded to only one supplier.

“Respondents Cortez, Calixtro and Cruz’s actions reflect grave misconduct.  Their acts were blatantly irregular and outside the bounds of established rules and principles as they opted to split the contracts even though the same should have been subject of a single transaction; there was lack of compelling or justifiable reason for them to split the contract; and that respondents failed to show that they obtained three price quotations from bona fide suppliers,” the Ombudsman’s decision read.

Morales said the transactions would not have been consummated had it not been for the concerted action of the respondents since Cortez approved all the purchase requests, purchase orders, disbursement vouchers and checks; Cruz certified the availability of funds and completeness of supporting documents while Calixtro signed the purchase requests and counter-signed the checks.

In 2006, the prevailing threshold amount for procurement projects undertaken through the alternative method of shopping was pegged at P250,000.  

“In excess of this amount, a procuring entity must conduct public bidding,” the resolution read.

The “splitting of contracts” is defined as the act of breaking up contracts into smaller quantities and amounts, or dividing contract implementation into artificial phases or subcontracts, for the purpose of making it fall below the threshold for shopping or small value procurement, or evading or circumventing the requirement of public bidding.

Morales said grave misconduct is a transgression of some established and definite rule of action, more particularly unlawful behavior or gross negligence by a public officer, attended with the elements of corruption, clear intent to violate the law or flagrant disregard of established rule. 

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