Some personnel from the Department of Health (DOH) on Wednesday asked the Office of the Ombudsman to investigate Health Secretary Teodoro Herbosa for possible violations of anti-graft and procurement laws over his alleged close ties with a health contractor.
In an 11-page complaint filed on Wednesday, the personnel, referring to themselves as concerned DOH employees as complainants, accused Herbosa of ‘fraternizing’ with Zuellig Pharma Corporation.
The complaint alleged that Herbosa, as the concurrent DOH Head of the Procuring Entity (HOPE), ‘continuously fraternized’ with the pharmaceutical company despite active participation in the agency’s bidding and procurement activities.
According to the complaint, Herbosa had been attending company-sponsored trips, social gatherings and out-of-town activities.
The relevant DOH personnel acknowledged that while Herbosa’s participation may be seen as an act of hospitality toward the contractor, these events occurred at a time when the company ‘had an active ongoing procurement interest with his office.’
Some of these procurements include the acquisition of inactivated polio vaccine amounting to P674 million and the procurement of Retuximab worth P122.9 million, both of which are under ‘ongoing protests’ based on the Commission on Audit’s observation memorandum in 2025.
Zuellig’s subsidiaries, Metro Drug Inc. and Intepharma Holdings and Management Corp., also lodged a protest, but in relation to the procurement of chick embryo cell rabies vaccine amounting to P24.9 million.
‘Sec. Herbosa’s fraternizing with the Zuellig group creates a dangerous environment where decisions can be influenced behind the scenes, and where a single contractor is granted privileged access that no other bidder enjoys,’ the concerned DOH employees said in its complaint.
They also included in their complaint several screenshots showing Herbosa’s supposed close relationship with the company, including a Facebook post by Zuellig Family Foundation showing the health secretary’s participation in one of its consultative forums in 2023, congratulating his confirmation as DOH secretary also in 2023, his attendance to the company’s forum in Thailand last February, and the company executives’ visit to his office.
For the employees, Herbosa’s supposed close relationship with the company constitutes violations of the anti-graft law, the government procurement law, and the code of conduct for officials and employees.
They asked the ombudsman to investigate the cabinet official for possible violations.
Aside from the investigation, the complainants also asked the ombudsman to place Herbosa under preventive suspension and impose possible administrative penalties.
For graft, the complaint said Herbosa, being a public officer himself, ‘repeatedly joined’ trips and other social activities of the company.
‘This direct connection between the contractor’s pending transaction and the HOPE’s repeated receipt of benefits satisfies the elements of Section 3(b) [of the anti-graft law],’ the complaint said, referring to the anti-graft law’s provision which prohibits public officials from receiving any gifts or benefits ‘in connection with or transaction between the government and any other part.’
The complaint further stated that Herbosa allegedly received these benefits while Zuellig, being the contractor, was waiting for his decision ‘on matters directly involving a government contract.’
There was also ‘clear conflict of interest’ under Republic Act No. 6713, or the Code of Conduct and Ethical Standards for Public Officials and Employees, since Herbosa ‘developed a personal and social relationship with the contractor through repeated participation in their sponsored events and activities.’
‘Secretary Herbosa continued to act on procurement matters involving the same contractor, without disclosure, recusal, or any attempt to avoid the conflict,’ the complaint said.
As for the alleged violation of the procurement law, the complaint said the revised implementing rules and regulations of the law penalize procurement officials who allow themselves to be ‘unduly influenced by a bidder.’
For them, Herbosa’s ‘repeated participation in contractor-sponsored activities, while procurement matters were pending, shows a clear willingness to be influenced,’ adding that the ‘no contact rule’ under the law is applicable to all procurement officials.
‘The combination of contractor-sponsored benefits, repeated social closeness during pending procurement matters, and continued involvement in deciding the contractor’s protest presents a deeply alarming risk to public accountability,’ the complaint said.
The Inquirer has reached out to Herbosa for his side but he has not responded to the queries as of press time.