A joint venture agreement (JVA) between a private company and the Manila City government under the previous administration for dialysis treatment equipment was found disadvantageous by the Commission on Audit (COA).

Cesar Chavez, the chief of staff of Manila Mayor Francisco “Isko Moreno“ Domagoso, said in a statement on Thursday the city heeded COA’s initial recommendation and took over the procurement of the items, which are not directly used or not standard items used or required for dialysis treatment.

The agreement COA referred to was between the Gat Andres Bonifacio Memorial Medical Center in Tondo and BBraun Avitum Philippines, Inc. (BBAPI), made in 2014 during the first term of former Mayor Joseph “Erap” Estrada, for a 75-25 sharing scheme in favor of the supplier.

The City Legal Office is proposing a 60-40 sharing scheme.

Chavez said when Domagoso assumed his post in 2019, the city’s legal team reviewed all previous contracts entered into.

The JVA with BBAPI was one of those flagged.

“As a result, we requested COA to review the contract and all financial transactions in relation thereto,” Chavez said. “The city took over the procurement of hemodialysis supplies and stopped the payment for all supplies billed by BBAPI as per the JVA.”

Chavez said if BBAPI is not amenable to the changes as per COA’s recommendation, they shall initiate the immediate termination of the contract which is supposed to be valid until 2029.