OMBUDSMAN Conchita Carpio Morales found probable cause to charge former Health Secretary Enrique Ona and two other DoH officials for the anomalous bidding of the P392.2-million contract to modernize the Region 1 Medical Center (R1MC) in 2012.
Aside from Ona, former Health Undersecretary Teodoro Herbosa and Assistant Secretary Nicolas Lutero III were also indicted before the Sandiganbayan for violating the Anti-Graft and Corrupt Practices Act.
The Ombudsman also found Ona, Herbosa and Lutero guilty of grave misconduct and were ordered dismissed from the service and meted the accessory penalties of perpetual disqualification from holding public office with forfeiture of retirement benefits.
In case of separation from the service, the penalty is convertible to a fine equivalent to respondents’ one year salary.
The charges were based on the finding that in September 2012, the three allegedly connived to give unwarranted benefit, advantage or preference to a disqualified contractor.
Five bidders joined the public bidding for the project with two bidders, EM Cuerpo Inc. and Specified Contractors & Development Inc. (SCDI), declared as post-disqualified for failure to comply with the DoH’s detailed estimate requirements.
Aggrieved, the SCDI, the second lowest bidder, filed a motion for reconsideration that was eventually denied by the special bids and awards committee.
On Aug. 23, 2013, a notice of award was issued to the third lowest bidder, Northern Builders Inc.
No protest as provided under Republic Act No. 9184, or the “Government Procurement Reform Act,” was filed by the SCDI.
In August 2013, the SCDI filed a letter-complaint before the Office of the President alleging anomalies in the procurement project and Ona subsequently requested Lutero to conduct a fact-finding investigation on the matter.
On Sept. 13, 2013, Ona instructed the chief of R1MC, Dr. Joseph Rolando Mejia, to provide an update on the procurement project.
Three days later, or on Sept. 16, 2013, Herbosa sent a letter to Mejia “enjoining him to nullify or set aside the issuance of the Notice of Award to [NBI] and to continue with the post-qualification of SCDI.”
But on Sept. 30, 2013, Ona issued a cease and desist order to Mejia pending investigation of the SCDI complaint.
In December 2013, the DoH conducted a rebid for the project.
In its resolution, the Ombudsman said that when the SCDI did not file any protest or appeal, “the SBAC’s resolution had become final and respondents could no longer intervene and issue a cease and desist order.”
Morales said that “while Ona had the power to investigate any infractions or violations committed by its employees, including the members of the SBAC, this does not mean that he could simply invalidate and declare null and void the proceedings and decisions made by the SBAC without observing the provisions of R.A. No. 9184.”
“This Office is convinced that Ona, Lutero and Herbosa conspired with one another in giving unwarranted benefit, advantage or preference to SCDI,” Morales added.