Ex-DOH chief Ona, 2 others face graft rap for P392-M hospital modernization project

The Office of the Ombudsman has found probable cause to file graft charges against former Health Secretary Enrique Ona and two other officials of the Department of Health (DOH) for an alleged anomalous P392.2-million hospital modernization project in 2012.

In a resolution recently signed by Ombudsman Conchita Carpio-Morales, Ona, former Health Undersecretary Teodoro Herbosa and former Assistant Secretary Nicolas Lutero III were ordered charged before the Sandiganbayan with violation of Section 3 (e) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.

Section 3 (e) of RA 3019 prohibits public official from giving unwarranted benefit, advantage or preference to any party or causing any party, including the government, undue injury.

Aside from indictment for criminal charges, the Ombudsman has also found the three former Health officials guilty of administrative offense of grave misconduct. They were originally ordered dismissed from service but since they were no longer connected with the DOH, the Ombudsman said the penalty is convertible to a fine equivalent to  one-year worth of salary.

They were also meted with the accessory penalties of perpetual disqualification from holding public office and forfeiture of retirement benefits.

Based on the Ombudsman’s investigation, Ona, Herbosa, and Lutero conspired to illegally cancel a P392.2 million contract for the modernization of Region 1 Medical Center (R1MC) that has already been awarded to a winning bidder to favor another company.

According to the Ombudsman’s records, the DOH started the bidding it in September 2012 for its modernization program for the Region 1 Medical Center (R1MC) with five companies joining the public bidding

The Ombudsman said two bidders, EM Cuerpo Inc. and Specified Contractors & Development Inc. (SCDI), were declared as post-disqualified for failure to comply with the agency’s detailed estimate requirements.

The SCDI, the second lowest bidder, filed a motion for reconsideration that was eventually denied by the DOH Special Bids and Awards Committee (SBAC).

The Ombudsman noted that on Aug. 23, 2013, a Notice of Award was already issued to the 3rd lowest bidder, Northern Builders Inc. (NBI) and no protest was filed by the SCDI.

And yet, in the same month, the SCDI filed a letter-complaint with the Office of the President alleging anomalies in the procurement project. Ona then requested Lutero to conduct a fact-finding investigation on the matter.

The Ombudsman said that on Sept. 13, 2013 Ona instructed then R1MC chief, Dr. Joseph Rolando Mejia, to provide an update on the procurement project.

Three days later or on September 16, 2013, Herbosa supposedly sent a letter to Mejia “enjoining him to nullify or set aside the issuance of the Notice of Award to the [NBI] and to continue with the post-qualification of SCDI.”

On Sept. 30, 2013, Ona allegedly issued a Cease and Desist Order to Mejia pending investigation of the SCDI complaint, and in December 2013, the DOH allegedly conducted a re-bid for the project.

In its resolution, the Ombudsman pointed out that under Republic Act 9184 or the Government Procurement Reform Act, when the losing bidder did not file any protest right after the awarding of the contract, the Special Bids and Awards Committee’s resolution “had become final and respondents could no longer intervene and issue a Cease and Desist Order.”

“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,” the Ombudsman’s resolution read.

“This Office is convinced that Ona, Lutero and Herbosa conspired with one another in giving unwarranted benefit, advantage or preference to SCDI,” it added.

GMA News Online tried to get a reaction from Ona, Herbosa and Lutero but they have yet to respond as of posting time.

In a text message to reporters, information officer IV Jerry Benedict Rosete of the Ombudsman Public Information & Media Relations Bureau clarified that the respondents may still file their motions for reconsideration on the Ombudsman’s resolution. —ALG, GMA News