Philippines Health Secretary Teodoro Herbosa and Undersecretary Randy Escolango are facing graft and administrative complaints before the Office of the Ombudsman, after a group of Department of Health (DOH) employees alleged the two officials engineered a centralized procurement setup that gave one official control over billions of pesos in public spending. The complainants, who identified themselves as “Concerned Department of Health Personnel,” accused the officials of creating a “closed-loop” or “closed procurement scheme” that allegedly bypassed statutory safeguards in the handling of medicines, vaccines and other medical supplies.

The case centers on two Department Personnel Orders (DPOs) issued in February 2026. According to the complaint, one order, DPO No. 2026-0700, granted Escolango oversight over both the Financial and Management Service and the Supply Chain Management Service. A second order, identified as DPO No. 2026-1080, reportedly designated him as chairperson of the Central Office Bids and Awards Committee-A (COBAC-A), the body with “exclusive jurisdiction” over high-value portfolios such as drugs and medicines, vaccines and other biological products, family planning pharmaceuticals and herbal medicines.

By combining these roles, the complainants argued, Escolango effectively presided over the entire lifecycle of DOH funds tied to major procurements — from budget programming and fund allocation to contract awards and the eventual distribution of supplies. The filing contends this “dual configuration” created what it described as an “absolute, self-policing conflict of interest,” neutralizing the independent financial and procurement checkpoints required under the country’s procurement laws. The complainants said the arrangement replaced transparent public bidding with an “unverified procurement framework” controlled by a single senior official.

Herbosa and Escolango were accused of violating Section 3(e) of Republic Act 3019, the Anti-Graft and Corrupt Practices Act, as well as provisions of Republic Act 12009, the New Government Procurement Act, which the complainants say mandate the segregation and independence of budget, procurement and logistics functions. They also face administrative allegations of grave misconduct and conduct prejudicial to the best interest of the service. The DOH employees urged the Ombudsman to place both officials under preventive suspension while the complaint is investigated, arguing that their continued presence could affect the integrity of any probe into the department’s multibillion-peso procurement operations.