Former Department of Budget and Management – Procurement Service (DBM-PS) Undersecretary Lloyd Christopher Lao has been urged to reveal the mastermind behind the alleged corruption in the Pharmally scandal following his arrest in Davao City.
Senator Risa Hontiveros called on Lao to identify the “big boss” who orchestrated and benefited from the misappropriation of billions of COVID-19 funds, now that he is in the custody of the authorities.
Hontiveros emphasized that Lao and his accomplices must be held accountable for the misuse of government funds at a time when millions of Filipinos were suffering from illness, hunger, and unemployment during the height of the COVID-19 pandemic.
Lao’s arrest, she said, should serve as a warning to all those who abuse their positions for corrupt purposes, stating that no amount of hiding or manipulation could shield them from the law and their responsibilities to the public.
In August, the Office of the Ombudsman filed graft charges against Lao and former Health Secretary Francisco Duque III over the illegal transfer of funds during the COVID-19 pandemic.
According to the criminal information filed with the Sandiganbayan, the Department of Health (DOH) transferred P41 billion to the DBM-PS in 2020 for the procurement of medical supplies, including detection kits, nucleic acid extraction machines, mechanical ventilators, personal protective equipment, surgical masks, cadaver bags, and various test kits.
The Ombudsman alleged that Duque authorized the transfer despite the fact that it did not expedite the project’s implementation, and despite the DOH’s capacity to handle the procurement itself.
Lao faces graft charges for accepting the P41-billion fund transfer as the executive director of DBM-PS and subjecting the DOH procurement to a 4% service fee, amounting to no less than P1.65 billion.