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Procured masks, face shields at start of pandemic 'cheapest': Lao

By Ruth Abbey Gita-Carlos

August 20, 2021, 3:30 pm

<p>Former DBM undersecretary and Procurement Service chief, Lloyd Christopher Lao <em>(Screengrab from Laging Handa briefing)</em></p>

Former DBM undersecretary and Procurement Service chief, Lloyd Christopher Lao (Screengrab from Laging Handa briefing)

MANILA – Former Department of Budget and Management (DBM) undersecretary Lloyd Christopher Lao on Friday surfaced to defend the procurement of face masks and face shields amounting to PHP1.82 billion.

In a Laging Handa briefing, Lao, also the former head of the agency's Procurement Service (PS), said his office had bought the “cheapest” face masks and face shields during the start of the coronavirus disease 2019 (Covid-19) pandemic.

Lao issued the statement after several senators questioned the purchase of allegedly “overpriced” face masks and face shields in 2020.

Based on the Commission on Audit’s (COA) 2020 audit report cited by some senators, the DBM-PS purchased around 113.905 million face masks sold at PHP27.72 each and 1,317,711 face shields at PHP120 each.

Lao said the prices of face shields and face masks could have been considered “very expensive” had the DBM-PS bought it this year.

“‘Yung PHP27, yes mahal iyan (PHP27 for each face mask is expensive nowadays), but during that time, that was one of the cheapest because face mask, during that time, was around PHP30 to PHP40,” he said. “Ang face shield during that time, it was the first time the people knew about the face shield. It was my first time to know about face shields. It was being sold at PHP250, PHP300, PHP400, ‘di ba ang mahal (that was expensive that time, wasn’t it?).”

The DBM-PS is tasked to handle large-scale procurements for the coronavirus disease 2019 (Covid-19) pandemic response efforts, including the purchase of Covid-19 supplies.

Senate Minority Franklin Drilon earlier questioned the Department of Health’s (DOH) transfer of PHP42 billion in pandemic funds to the DBM-PS for the purchase of face masks and face shields.

Drilon also slammed the supposed “overpricing” in the purchase of face masks and face shields.

Drilon said the procurement of face masks cost the government around PHP1.66 billion. The cost, he said, should have only been around PHP569.52 million.

He added that around PHP158.13 million had been spent for the purchase of face shields when it should only be around PHP65.89 million.

Lao, however, said the face mask and face shield were priced at PHP27.72 and PHP120 each, respectively, due to the “market’s situation” amid the pandemic.

“Because of the increase of supply, the prices would drop. But you can also say, pag tumataas naman yung cases (if the cases spike), the prices of these items would increase but not exponentially high,” he said.

The fund transfer was questioned because it was allegedly done without proper documentation.

Lao clarified that the funds received by the Budget department’s procurement service was “sourced out from DBM and transferred to DOH.”

“However, DOH transferred it to PS-DBM, the procurement service of the Department of Budget and Management,” he said.

Lao added that there is no need to need for a memorandum of agreement (MOA) and other supporting documents for the transfer of money for Covid-19 equipment since the procured items are for “common” use.

“‘Yung (The) report, whatever information is going out, is not complete. Hindi siya complete. So nagtatanong sila, bakit walang memorandum of agreement (they are asking why there is no memorandum of agreement),” he said. “If it’s considered common use, then, the agency requesting PS-DBM to procure does not need a memorandum of agreement.”

The MOA, Lao said, would only be required if the item that a certain agency would request DBM-PS to procure is considered a “non-common use.”

“Why there is no memorandum of agreement for these items? It is because those items that they bought are considered common use supplies,” Lao said.

The name of Lao, who resigned as DBM-PS head in June this year, resurfaced after several senators questioned the allegedly overpriced face masks and face shields purchased by DOH.

Lao was also linked to Senator Christopher Lawrence Go, who denied that he was associated with the former budget official.

He said it is “unfair” to politicize him and link other government officials to him amid the controversial purchase of Covid-19 supplies.

He, nevertheless, expressed willingness to attend the Senate inquiry, in case the senators summon him.

“It is my responsibility and I am willing to attend to shed light on the matter,” Lao said.

In May last year, Lao briefed President Rodrigo Duterte about the purchase of several Covid-19 equipment, including the face masks and face shields.

Lao told Duterte that the procured face masks and face shields meet the “standards set by DOH and FDA (Food and Drug Administration)". (PNA)

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