Pimentel wants Blue Ribbon probe into PS-DBM’s ‘lack of diligence’ in P1.386-B PPEs purchase

Senate Minority Leader Aquilino "Koko" Pimentel III has filed a resolution seeking a Blue Ribbon committee investigation into the Department of Budget and Management Procurement Service's (PS-DBM) alleged "lack of diligence" in its procurement of P1.386 billion worth of personal protective equipment (PPE).

Pimentel filed proposed Senate Resolution 141 with the end in view of identifying accountability and making changes to the procurement laws and processes if found necessary.

"This is not just about compliance to the procurement law and its rules but the safety of our frontliners and our people as a whole," Pimentel wrote in the resolution.

"There is a reason for this requirement by the [Food and Drug Administration] and it should not be brushed aside especially during these times of public health emergency," he added.

In his resolution, Pimentel cited the Management Letter in the 2021 Commission on Audit (COA) report, which flagged the PS-DBM over its failure to secure the required Certificate of Medical Device Notification (CMDN) in seven of its PPE procurements.

He noted that FDA Circular No. 2020-031 dated November 3, 2020 on Licensing and Notification/Registration Requirements for PPEs, which states that all establishments which intend to import and manufacture PPEs to be used in the COVID-19 pandemic should secure a License to Operate (LTO) as medical device importer or manufacturer.

After securing the LTO, importers and manufacturers of personal protective equipment are required to secure a CMDN prior to the commercial sale and distribution of said medical devices.

This FDA Circular covers face masks for medical use including N95 masks, surgical masks, shoe cover, gloves, head covers, and gowns, Pimentel noted.

According to the said COA management letter, Pimentel said the PS-DBM entered into seven contracts for the procurement of PPEs without the safety requirement—two contracts did not require CMDN in its technical specifications while the suppliers failed to submit the same document in five other contracts.

Following this observation, Pimentel said the audit team found that: "The PS did not exercise due diligence in procuring the personal protective equipment items, neither in crafting the [technical specifications] nor in the review and evaluation of the technical capacity of the supplier to deliver the goods to be procured using the nondiscretionary criteria."

PS-DBM responds

In a message to GMA News Online, PS-DBM Executive  Director Dennis Santiago said that the agency welcomes Pimentel's resolution.

"This supports our initiative of turning over to the National Bureau of Investigation (NBI) on Friday, 12 April 2022, all relevant documents related to contracts entered into by PS-DBM in previous years which were the subject of COA findings," he said.

"We will fully support the conduct of a fair, impartial and independent investigation on the matter. We will fully cooperate with the Senate, as well as with other investigating authorities, to address the findings of COA, and to determine if there were indeed irregularities in the process, and non-compliance to existing laws."

Pimentel earlier said that there could be something "structurally wrong" with the PS-DBM, in connection with the purchase of P2.4 billion worth of allegedly "outdated and pricey" laptops in 2021, and said he was inclined to favor its abolition. — BM, GMA News