MANILA, Philippines – A criminal charge against former health secretary Francisco Duque III and former Procurement Service-Department of Budget and Management (PS-DBM) undesecretary Lloyd Christopher Lao has been filed before the Sandiganbayan, Ombudsman Samuel Martires said on Wednesday, August 28.
This is related to the controversial transfer of P41.464 billion worth of the Department of Health‘s funds to the PS-DBM from March to December in 2020 to procure supplies for the COVID-19 pandemic. This included nucleic acid extraction machines, mechanical ventilators, personal protective equipment, surgical masks, cadaver bags, and various test kits.
Duque and Lao are accused of violating the Anti-Graft and Corrupt Practices Act (RA 3019).
According to prosecutors, the two caused undue injury to the government since the transfer required the PS-DBM to charge a 4% service fee, which totaled P1.659 billion. They also said Duque acted in bad faith or negligence when he approved the fund transfer and when Lao accepted the money even if the PS-DBM did not have the supplies needed by the DOH.
The graft charges come months after the Ombudsman recommended that a case be filed against the two former officials. This all stemmed from the complaints filed by opposition Senator Risa Hontiveros and former Senator Richard Gordon.
The Ombudsman said in its May 6 decision that the DOH had “no legal obligation nor compelling reason” for them to transfer funds to the PS-DBM for their supplies. Emergency situations allow the agencies to negotiate directly with suppliers without having to tap the PS-DBM.
If the DOH went ahead with its own procurement, the government would have saved P1.659 billion. — Rappler.com