8.13 Price verification conducted through online sources revealed that, as of December
2023, the prevailing market prices for Azithromycin ranged from approximately
₱96.00 to ₱159.00 per 500 mg tablet. Furthermore, the price of Azithrom, as listed
on MedsGo Pharmacy’s website, was ₱60.00 per tablet.
8.14 In view of the foregoing, it appears that the procurement of Azithromycin 500 mg
tablets was significantly overpriced.
8.15 This observation was communicated to Management through Audit Observation
Memorandum (AOM) No. 2025-10(24) dated April 24, 2025.
8.16 We recommended that Management enforce compliance with the terms and
specifications stated in the contract and the Request for Quotation (RFQ),
such that items delivered exactly match the descriptions, brand names, and
specifications indicated therein, unless a formal amendment of the contract is
duly signed by both parties prior to delivery.
8.17 Management said that the request with regard to changes in the brand name was
recommended by the City Health Officer for approval which resulted to subsequent
approval of the City Mayor. Management verified and confirmed the items
delivered to be pharmaceutically equivalent in terms of active ingredient, dosage
and safety.
8.18 In addition, management shall review and update protocols to ensure stricter
adherence to contract terms.
8.19 With respect to the issue of overpriced Azithromycin, the City Legal Officer sent
a demand letter to the Supplier demanding refund in the amount of ₱311,040.00.
8.20 The selection of the specific brand to be offered rest entirely on the bidder, hence
the bidder is expected to have the capabilities to supply the offered bid until the
delivery date. Even though the delivered items were pharmaceutically equivalent
to the items in specified in the contract, the bidder shall bear full responsibility in
the event that the items are discontinued or not available in the market.
Patient Transport Vehicles labelled as Ambulances
9. Due to the extensive requirements to secure a Department of Health License to
Operate (DOH-LTO) land ambulances, the five vehicles owned by the City were
operating as a Patient Transport Vehicle instead of ambulances as marked on its
body contrary to DOH Administrative Order (AO) No. 2018-0001, .
9.1 On January 28, 2018, the DOH issued AO No. 2018-0001 to promulgate rules and
regulations which outlines updated minimum standards and requirements for the
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