G.R. No. 150870 - DRA. HONORATA G. BAYLON, VS. FACT-FINDING INTELLIGENCE BUREAU REPRESENTED BY DIRECTOR AGAPITO ROSALES AND THE OFFICE OF THE OMBUDSMAN.D E C I S I O N - Supreme Court E-Library

Ruling

accordingly directed the full operation of the Blood Donation Program, which apparently served as the then only viable system from which blood could be sourced. On March 8 and 17, 1994, the NKTI, through petitioner, issued Requisition and Issue Vouchers [4] for the purpose of purchasing blood bags for immediate distribution to DOH hospitals or medical centers where the system of voluntary blood donation would then be put in place. As Terumo blood bags were believed to be the finest in the market, the NKTI obtained a quotation therefor dated March 16, 1994 [5] from their exclusive distributor, the FVA EX-IM Trading, Inc. (FVA), as follows: 1. [Blood Bag], Single Capacity = P 72.29 [per piece] 2. Double Capacity = P 171.00 3. Triple Capacity = P 263.70 Another quotation dated March 29, 1994 [6] was later furnished by FVA reflecting the following reduced prices: 1. Single = P 63.54 2. Double = P 150.00 3. Triple = P 209.09 Petitioner signified her conformity to the second quotation. The NKTI subsequently purchased Terumo blood bags from FVA under the following purchase orders with their corresponding dates, the respective amounts involved in each sale transaction, and the names of the approving authority: [7] Date Purchase Order No. Amount Approving Authority 1. April 11, 1994 94-00943 P 1,270,800.00 Juan M. Flavier, Jaime Galvez-Tan Juan R. Nanagas 2. May 25, 1994 94-00132 P 536,025.00 Filoteo A. Alano (recommended by Aileen R. Javier) 3. August 12, 1994 94-00147 P 1,702,687.65 Juan M. Flavier 4. November 14, 1994 94-00172 P 2,209,915.00 Juan M. Flavier 5. December 6, 1994 94-00182 P 506,585.45 Juan M. Flavier In March 1995, the Commission on Audit (COA) disallowed in post audit the sale transactions entered into by the NKTI with FVA on the ground that the blood bags were purchased without public bidding, contrary to the applicable laws or rules, thereby allegedly resulting to overpricing. [8] The COA found that FVA sold Terumo blood bags to the Philippine National Red Cross (PNRC) and to blood banks Our Lady of Fatima and Mother Seaton at prices lower than those at which it sold to the NKTI, leading to a consequent total loss to the government in the amount of P 1,964,304.70. The Auditor of the NKTI accordingly ordered the suspension of purchases of blood bags from FVA and eventually disallowed the payment of blood bags amounting to P 6,006,133.54. A criminal complaint, docketed as OMB-0-97-0242, for violation of Section 3(e) and (g) of Republic Act (R. A.) No. 3019 (THE ANTI-GRAFT AND CORRUPT PRACTICES ACT), was thus filed by the Office of the Ombudsman against petitioner, Flavier, then DOH Undersecretaries Dr. Jaime Galvez-Tan and Dr. Juan R. Nañagas, NKTI Executive Director Dr. Filoteo A. Alano, NKTI Deputy Executive Director Dr. Aileen R. Javier, NKTI Property Division Chief Diana Jean F. Prado and NKTI Accounting Division Chief Maribel U. Estrella. At the same time, an administrative complaint for gross misconduct was lodged against pet