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Metro Manila (CNN Philippines, October 22) – The Justice Department is investigating the validity of the memorandum of understanding between PhilHealth and the Philippine Red Cross on coronavirus testing, as well as procurement issues, a cabinet official said Thursday.
The Philippine Health Insurance Corporation or PhilHealth requested the review, Attorney General Menardo Guevarra told reporters.
“PhilHealth sought the opinion of the Department of Justice before making the decision to pay its debt to the Philippine Red Cross,” said Guevarra.
The humanitarian organization stopped testing swabs under PhilHealth after collectibles soared to nearly $ 931 million. PhilHealth’s newly appointed chairman and chief executive Dante Gierran said the state insurer will pay off its debt, but pointed to some questionable provisions in the MOA signed by its predecessor.
Gierran replaced Ricardo Morales, who resigned amid accusations of corruption and fraud. Morales signed the MOA with Red Cross President Senator Richard Gordon in May. Provides a $ 100 million revolving fund for COVID-19 testing.
Since then, the Red Cross has provided more than a million tests, a quarter of the country’s testing capacity.
Although the Bayanihan to Heal as One Act allowed PhilHealth to proceed under an emergency negotiated tender with the Red Cross, Gierran previously said that some hiring laws were still being violated. He added that PhilHealth should be charged a lower amount, as the cost of each polymerase chain reaction or PCR test has dropped to $ 3,409 each, from $ 3,500 set in the MOA, due to increased supply. in the market.
Guevarra said his department will assess the validity of the agreement, “but more particularly on procurement issues.”
“We are giving this our preferential attention,” he said.
Guevarra said that while they are focusing on possible civil liability, they are not ruling out criminal liability until a comprehensive review is completed.
Since the Red Cross stopped PhilHealth-funded coronavirus testing last week, samples from overseas Filipino workers have been diverted to government labs, causing testing delays. Some 6,000 OFWs are now stranded in quarantine facilities awaiting the results of their tests, according to the Department of Labor. The Health Department said some private testing labs have offered to help.
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