Sun.Star: DOH orders probe of Cebu hospital deals

The Health Department ordered its Integrity Development Committee to look into financial irregularities in Cebu City's Vicente Sotto Memorial Medical Center (VSMMC), which government auditors found lost at least P100 million to graft. Sun.Star Cebu reported Wednesday that the Department of Health (DOH)-Central Visayas director Susana Madarieta said the inquiry followed a verbal order from Health Secretary Francisco Duque III. Heading the committee is Dr Elaine Teleron, chief of the DOH-Central Visayas Technical Division and the resident ombudsman of the agency. Madarieta also visited VSMMC chief Gerardo Aquino Jr Monday afternoon to inform him that a committee has been formed to "gather facts." "He welcomed the investigation to clarify everything," Madarieta said of Aquino's reaction to the investigation. She added that some issues raised were already answered and that there are measures already done to address them. This is the first time that the DOH will conduct an investigation on the government hospital based on COA's findings. Madarieta said previous investigations conducted by the agency at the VSMMC were based on complaints of some clients. This time around, Duque has been prompted by the controversy. She admitted that the investigation may take a long time because of extensive issues addressed in the report. She will submit an update to the secretary though, from time to time. The committee was tasked to validate if there were indeed actions taken and if the recommendations raised by the Commission on Audit (COA). DOH-Central Visayas has direct line supervision and monitoring over the VSMMC, although the latter has autonomy on day-to-day hospital operations. It has its own budget from the Department of Budget and Management (DBM) and has its own bids and awards committee (BAC). A COA audit report stated how VSMMC lost over P100 million of projected income over laboratory examinations done outside the hospital. The COA report also detailed budgetary allocations spent on purchases like ready-made bed sheets, which hospital seamstress and utility workers could have made at over half the price. The amount also covered the procurement of other medical equipment, on top of the P48-million loss on hospital dormitory operations. State auditors further noted that the VSMMC spent almost P80 million in public funds for procurements in 2006, but only transactions worth over P13 million underwent public bidding. "We will address everything," said Madarieta, when asked which among the issues will be the agency's priority. On criminal and administrative charges that may be necessary, Madarieta said this would be up to Duque. "The instruction was only on fact-finding. I don't know what happens after the report will be submitted to the secretary," she said. - GMANews.TV