Then Health Secretary Francisco Duque III attends a House hearing on August 28, 2019. Jonathan Cellona, ABS-CBN News/File

MANILA — The Office of the Ombudsman has junked the administrative charges against former Health Secretary Francisco Duque III over the supposed irregularities in the transfer of P41.46 billion from the Department of Health (DOH) to the Department of Budget and Management's procurement service (PS-DBM) since he is no longer in government service.

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The alleged illegal transfer was for the purchase of COVID-19 supplies and equipment by the Duterte administration at the height of the global pandemic. 

In a 10-page order signed on September 30 but released October 13, Ombudsman Samuel Martires cleared Duque of grave misconduct and gross neglect of duty saying he can no longer be subject to the administrative complaint. 

The Ombudsman granted the motions for reconsideration filed by Duque in May, praying for the dismissal of administrative charges against him.

'NO LONGER SUBJECT OF A PROPER COMPLAINT' 

Duque cited a 2011 Supreme Court case to support his argument that a public official who has severed their ties with civil service "may no longer be subject of an administrative complaint."

"Taking cue from the Supreme Court's pronouncement in Jamorabo, this office found sufficient basis to docket administrative charges against Duque given that the irregular fund transfers to PS-DBM occurred during his tenure as DOH Secretary," the Ombudsman said, 

"Following the Supreme Court’s pronouncements in Andutan as further clarified in Jamorabo, this Office is constrained to hold that Duque is ‘no longer the proper subject of an administrative complaint’ in connection with the irregular fund transfers to PS-DBM during his stint as DOH Secretary," it added.

The administrative case against Duque was filed on August 15,2023, following his separation from service on June 30,2022. 

"There is no denying that Duque's separation from service coincided with the end of President Rodrigo Duterte's term of office on 30 June 2022. Such separation was a necessary consequence of the coterminous nature of this appointment as DOH Secretary," the Ombudsman said in its decision. 

"Considering that the issues on the administrative charges have been rendered moot, this Office sees no point in belaboring the other arguments relating thereto," it added. 

In May, the Ombudsman found Duque and former PS-DBM Undersecretary Lloyd Christopher Lao administratively liable of grave misconduct and conduct prejudicial to the best interest of the service over the fund transfer.

The Ombudsman also recommended that Duque and Lao be dismissed from service, resulting in the forfeiture of all their retirement benefits and perpetual disqualification from reemployment in the government. 

GRAFT CHARGES STILL ACTIVE

The Office of the Ombudsman formally filed graft charges before Duque and Lao before the Sandiganbayan on August 27. 

The Ombudsman alleged that the transfer further slowed down the procurement process and that PS-DBM did not have the expertise for the items to be purchased. 

In 2022, then Sen. Richard Gordon and Sen. Risa Hontiveros recommended graft complaints against Duque and against officials of Pharmally Pharmaceutical Corp. after months of Senate Blue Ribbon committee hearings on the procurement of pandemic supplies and equipment. 

Senators questioned why Pharmally won about P11 billion in government contracts from 2020 to 2021 despite that it only had a capital of P625,000 and was only incorporated in 2019. 

Duque and Lao still face graft charges before the Sandiganbayan over alleged irregularities in the P41-billion fund transfer.

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