Whistleblower claims overpricing, padding exist in PhilHealth's proposed IT budget

Hundreds of millions worth of equipment were allegedly inserted in the 2020 budget proposal for PhilHealth's information technology project, a witness revealed in a Senate inquiry on Tuesday.

PhilHealth Board member Alejandro Cabading raised the concern before senators as the investigation on supposed irregularities in the state insurer commenced.

"There were items in the submitted budget that were not included in the ISSP (Information Systems Strategic Plan) approved by the DICT," Cabading said.

"The ICT resources included in the 2020 budget proposal but do not appear in the ISSP have a total amount of P734 million," he added.

Citing an audit report, Cabading further said that there was an "intent to confuse and deceive by splitting one item into two by listing different descriptions."

The whistleblower also enumerated allegedly bloated amounts of IT equipment in the proposal.

He said an Adobe Master Collection Software priced by the DICT-approved ISSP at P168,000 was pegged at P21 million in the proposed 2020 budget.

The P20-million Identity Management Software was priced P42 million, and the structured cabling worth P500,000 came with a price tag of P5 million, Cabading said.

The said budget was part of the P2.1 billion budget proposal which the PhilHealth Board did not approve due to potential irregularities.

"Noong unang nilabas 'yung budget, tulad ng sinabi ni Board member Cabading, noong December, kulang po ng justification. Hindi po namin masikmura na ipapasa namin ang budget na 'yun dahil hindi maeksplika nang mabuti kung saan pupunta ang pera. Malaking pero po eh, P2.1 billion," Board member Dr. Susan Mercado said.

Cabading said they recommended to wait for the internal audit report first before taking up the matter again.

However, when the result of the audit came out in May, Cabading said PhilHealth chief Morales dropped the matter off from their meeting agenda and always seemed to push back discussions about it.

Instead, a supplemental budget worth over P300 million was asked to be approved by the Board. They were supposedly told that PhilHealth's IT system will collapse otherwise.

"Ang Board po ang pakiramdam eh, pag di namin inaprubahan itong P328 million from the 2019 budget na dapat nagastos nila 'yun, uulit na naman daw sila ng bidding process. So mayroon pong na-release na pondo para doon sa isang project ng 2019. Iba pa po iyon sa P2.1 billion na hinigingi for 2020," Mercado said.

Revisions allowed

Meanwhile, PhilHealth Senior Vice President and Chief Information Officer Jovita Aragona said the DICT allows Philhealth to revise the ISSP.

"Nagkaroon po tayo ng approved Information System Strategic Plan from 2018 to 2020. Of course throughout the years hindi lang naman kung ano ang inilagay mong plan for three years it will stay as is lalo na sa technology," she said.

"So, the DICT allows amendments or revisions to your existing approved ISSP... kapag mayroon kang bagong projects, i-update mo kung nabago 'yung price, kung bumaba ang price o kaya tumaas ang price, naga-update din tayo pag nabago ang title ng projects," she added.

Morales stood firm that there were no irregularities in the 2020 IT budget proposal.

"I think it is a matter of explaining fully to the members of the Board the details of the IT system because information system is very complicated," he said.

During the same hearing, Morales said he is confident that an improved IT system would significantly reduce fraudulent claims in PhilHealth. —LDF, GMA News