Questions raised over health department's awarding of negotiated contract to foreign company

Catanduanes Rep. Joseph Santiago on Wednesday asked the House committees on good government and health to investigate the alleged anomalous bidding that governed the purchase of flu-testing equipment by the health department's Research Institute for Tropical Medicine (RITM).

The anomaly allegedly resulted in the awarding of the contract to Roche, a company that didn't submit the lowest bid, and is foreign-owned, which is against the law. Moreover, the contract reportedly resulted in the purchase of overpriced machines and more units than what was required by the agency.

The four flu-testing machines, intended to detect if patients have A(H1N1) or swine flu virus, were bought at a price 23 times higher than the one offered by the lowest bidder.

"There are allegations of connivance, and that the RITM rigged the bidding and manipulated the subsequent negotiated purchase of the machines. These are very serious allegations that cannot just be swept under the carpet," Santiago said.

The Trade Union Congress of the Philippines exposed on Sunday that Macare Medical Inc., a Filipino-owned company, originally won the public bidding early this year, with its offer of P2.4 million for each machine. Swiss firm Roche Philippines Inc. offered a bid of P2.96 million per unit. Santiago said that RITM officials negotiated with each bidder after the bidders filed their proposals.

When the results came out, Santiago said, Roche got the contract after it cut its offer to become P10,000 lower than the offer of the winning bidder. It now offered the machines at P2.39 million each.

"The Swiss firm was immediately declared winner by negotiated sale, instead of by public bidding," he added.

Oversupply, too

The bidding was supposedly set to procure only 3 flu-testing machines, but Roche, according to TUCP, delivered 4 machines to the RITM. Santiago pointed out that under the bidding rules, government agencies can only award what was bid out.

RITM attempted to appease Macare by proposing to award additional 2 machines, the lawmaker said. "The government is now on the hook for a total of 6 units, instead of just 3 machines," the congressman said.

Other than the alleged negotiated bidding, the trade union said that RITM violated the government's procurement policy when it allowed an entirely foreign-owned Roche to join the bidding, when only companies that are at least 60% owned by Filipinos are allowed to join.

Macare submitted a complaint before the Department of Health's Integrity Development Committee (IDC), where the case is being heard since last August. Among the RITM officials being investigated is Dr. Remigio Olvedo, RITM's director.

Santiago doubted for the IDC members will probe fairly, since they are investigating their own colleagues. Thus, he called for a joint probe in the House to ensure "full-dress and fair" inquiry. (Newsbreak)