On 10 May 2006, Department of Health (DOH) Secretary Francisco Duque III and Jose R. Reyes Medical Memorial Center (JRRMMC) Chief Dr. Ma. Alicia Lim signed a Memorandum of Agreement (MOA) with Procurement Watch Inc. (PWI) and the National Citizen’s Movement for Free Elections (NAMFREL) for the development of a corruption measurement methodology called the Differential Efficiency Expenditure Management (DEEM) Tool.

The concurrence of the said agency to participate in the development of the DEEM Tool provides “strong evidence that the DOH is continuously striving to be a corruption-free agency,” Secretary Duque stated.

The DEEM tool aims to address the call for an objective and concrete standard of measuring changes in operating efficiency at the agency level. It is better than measuring corruption on the basis of public perception. According to PWI, which is taking the lead, the methodology is supportive of government reform because it can be a reliable basis for evaluating the impact of agency reform measures, particularly those that are intended to bring down leakages and operating expenses.

The Secretary further opined that “a corruption-free agency should be the norm, and not the exception.”

The first phase of the project will be piloted at the JRRMMC. Medical Center Chief Dr. Lim expressed her appreciation for the opportunity for JRRMMC to “lead the way and live the example” set by the Secretary.

Initial work shall focus on the development of a methodology that would use independent assessments of expenditure by members of PWI and NAMFREL as a benchmark for the actual spending of JRRMMC for certain items. PWI is a non-government organization that aims to enhance transparency, accountability, and efficiency in public procurement through a multi-sectoral, constructive, and procedure-focused approach. NAMFREL has been involved in the monitoring of medicine procurement in the DOH for over a year now. The DEEM Tool Project is supported by the United States Agency for International Development through The Asia Foundation.