Ex-DBM exec Lao admits possible 'negligence' in procurement of overpriced face masks, face shields

Former Department of Budget and Management-Procurement Service (DBM-PS) head Christopher Lloyd Lao admitted Friday that there might be possible negligence on his part in the procurement of overpriced face masks and face shields during the onset of the COVID-19 pandemic in 2020.

At a Senate hearing, Senator Francis Pangilinan asked Lao to explain why there is a difference in the price range of face masks procured by the DBM-PS and the Philippine Red Cross.

In the previous committee hearing, PRC chairman and Senator Richard Gordon said they bought their face masks at P5 pesos each, Meanwhile, the DBM-PS bought it at around P13 to P27 pesos.

“I cannot explain that. I think the only thing is that maybe Red Cross has a very good network, they have international ties with International Red Cross, especially, in China so they have faster communication,” Lao said.

He said this was also the explanation on the price difference in the test kits procured by the PRC and the DBM-PS.

At this point, Pangilinan asked Lao if there is a possibility that there is “negligence” on his  part as chief of the DBM-PS.

“It is also possible Mr. Lao that you were negligent. It’s possible, I’m not saying you were but the possibility that you were negligent that Red Cross is more circumspect and was able to purchase it at P5 while government, because perhaps, I don’t know, maybe because of negligence bought it five times more expensive,” the senator said.

“Maybe if there was a more diligent search, maybe if there was a more diligent process, that we could have brought down the price of a P27 face masks and a P122 face shield,” he added.

Lao explained anew that the prices for the face masks and face shields during the onset of the pandemic were high and they tried to bargain for a lower price.

“Mr. Chair, I would just like to state, during the time we were able to canvas, the offer during the time was roughly around P20 to P40. So medyo mahal talaga and 'yung face shield, when we were trying to buy it during the time, the offer was around P400, P350, the lowest was P120,” Lao said.

“And when you say that there might be negligence or we were not able to exhaustively look for the cheapest supplier, there might be a possibility given the scenario that we lack time, we lack the resources, the connection during that time, that might be a possibility,” he said.

Senators have been grilling the DBM-PS and the Department of Health over the transfer of P42 billion fund to the procuring agency.

They are also interrogating the DBM and DOH officials over the procurement of overpriced face shields and face masks as flagged by the Commission on Audit.—AOL, GMA News