PhilHealth IT Project flagged as overpriced by COA

The Commission on Audit has flagged PhilHealth’s PHP 2.1USD 0.04INR 3EUR 0.03CNY 0.26 billion IT project with overpriced equipment and software.

In a report by Inquirer.net, the PhilHealth IT project was found with several irregularities by the Commission on Audit (COA) and PhilHealth’s resident auditors in three separate reports. The biggest red flag was the procurement of various equipment worth PHP 734USD 13INR 1,060EUR 12CNY 91 million that was not part of the original budget proposal submitted by the state insurer.

In the report submitted in May, COA auditors found that the budget for five ICT resources, including computers, scanners, and other items, was overpriced by PHP 98USD 2INR 142EUR 2CNY 12 million. An Adobe software which cost PHP 168,000USD 2,863INR 242,693EUR 2,727CNY 20,849 per unit was also listed 12,400% higher at PHP 21USD 0.36INR 30EUR 0.34CNY 3 million each.

Due to the increase in prices, the items under “application servers and licenses” was increased to PHP 40USD 0.68INR 58EUR 0.65CNY 5 million from the initial PHP 25USD 0.43INR 36EUR 0.41CNY 3 million budget.

Inquirer’s sources also report that the irregularities found in PhilHealth’s IT project were one of the reasons why Thorrsson Montes Keith, former PhilHealth antifraud officer, quit on July 23. In his letter addressed to PhilHealth’s president and CEO Ricardo Morales, Keith mentioned “widespread corruption” as one of the reasons for his resignation.

Source: Inquirer