MANILA, Philippines — Concerned Department of Health (DOH) personnel on Wednesday filed a complaint against Secretary Teodoro Herbosa and Undersecretary Randy Escolango before the Office of the Ombudsman for allegedly controlling the agency’s multibillion-peso procurement scheme and called for their dismissal from service.
Charges of graft, grave misconduct and conduct prejudicial to the best interest of the service were filed against Herbosa and Escolango by the complainants, who identified themselves only as "concerned Department of Health personnel" at the anti-graft office in Quezon City.
In a complaint, a copy of which was obtained by The Manila Times, the staff alleged that the two officials established a "closed-loop procurement scheme" where Escolango controlled fund allocation and contract approvals to the distribution of medicines, vaccines, and other medical supplies.
They cited the Department Personnel Orders issued by Herbosa in February 2026 which designated Escolango as the head of both the Financial and Management Service and the Supply Chain Management Service.
At the same time, Herbosa also appointed the undersecretary as chairman of the Central Office Bids and Awards Committee-A (COBAC-A), which oversaw DOH's major procurements, the complainants said.
Consequently, they alleged that Escolango effectively held sway over budget programming, fund availability, contract awards to suppliers, and even the handling and distribution of products purchased with public funds.
The complaint asserted that the respondents violated the provisions of the Anti-Graft and Corrupt Practices Act (Republic Act 3019) and the New Government Procurement Act (R.A. 12009), which mandated the independent segregation of procurement functions to prevent abuse of power and corruption.
“The concurrent designation of Escolango creates an absolute concentration of power that subverts the anti-graft architecture of RA 12009,” the complaint read.
They warned that such an arrangement opened the door to manipulation of the procurement process, artificial budget inflation, front-loading of contracts, and the entry of substandard medical supplies—all of which could pose a serious threat to public health.
“It permits an official to review his own agency’s financial releases, completely neutralizing independent audit systems,” they pointed out.
“In light of these allegations, we appeal to Ombudsman Jesus Crispin Remulla to place Herbosa and Escolango under immediate six-month preventive suspension without pay while the case is under investigation,” the complainants said.
Should they be found guilty, the complainants were also seeking the heaviest administrative penalty—dismissal from the service—along with the forfeiture of benefits, perpetual disqualification from holding any government position, and all other accessory penalties provided for by law.