Ombudsman axes East Avenue Medical Center execs over alleged bid anomaly

Ombudsman Conchita Carpio Morales has ordered the dismissal of three high-ranking officials of the East Avenue Medical Center (EAMC) over the allegedly anomalous procurement of medical supplies and equipment in 2006.

Found guilty of grave misconduct were EAMC medical center chief Dr. Rolando Cortez, finance management officer Marietta Cruz and chief administrative officer Jose Calixtro.

Based on the Ombudsman's investigation, the EAMC in 2006 procured medical supplies worth P10.3 million without public bidding.

The said procurement was made with 47 small purchases, each not exceeding P250,000 and awarded to only two suppliers.

In the same year, the EAMC procured 20 air-conditioners and 13 exhaust fans amounting to a total of P450,950.

This time, the equipment was split into two small purchases, each not exceeding P250,000 and awarded to a sole supplier.

The Ombudsman said in its decision that the contracts should have been procured in a single transaction.

“[R]espondents Cortez, Calixtro and Ramos’ 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," the Ombudsman said.

"[T]here 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," she added.

In 2006, the prevailing threshold amount for procurement projects made through alternative method of Shopping was P250,000.

In case the project exceeds this amount, the procuring entity must hold public bidding.

However, the respondents chose to "split the contracts," an act of breaking up contracts in smaller quantities, or dividing the contract implementation into artificial phases or subcontracts, in order to make it fall below the prevailing threshold or do away with public bidding.

Morales said the concerted action of the respondents made it possible for the anomalous transaction to proceed.

Cortez allegedly approved all the purchase requests, purchase orders, disbursement vouchers and checks.

The Ombudsman said Cruz certified that funds were available and supporting documents and complete, while Calixtro signed the purchase requests and counter-signed the checks.

By definition, grave misconduct is committed when there is unlawful behavior or gross negligence by a public officer, with some elements of corruption and clear intent to violate the law. —ALG, GMA News