The Ombudsman has ordered the filing of graft charges against former Health Secretary Francisco Duque III and former Procurement Service-Department of Budget and Management (PS-DBM) Undersecretary Lloyd Christopher Lao.
In a resolution dated 6 May but made available only to the media on Friday, the Ombudsman said it found probable cause to indict Duque and Lao over the alleged irregularities in the purchase of Covid-19 supplies worth over P41 billion.
It noted that the two former government officials violated section 3(e) of the Anti-Graft and Corrupt Practices Act, or Republic Act 3019.
The filing of graft charges arose from the irregularities in the Department of Health’s transfer of funds to PS-DBM for the procurement of Covid-19 supplies and equipment, including RT-PCR detection kits, personal protective equipment (PPEs), ventilators, face shields, surgical masks, among others to the tune of P41 billion.
The alleged anomalous transaction was made at the peak of the pandemic in 2020 and 2021.
The complaints were filed by former senator Richard Gordon and Senator Risa Hontiveros, who spearheaded the investigation of the Senate Blue Ribbon into the purchase of Covid-19 supplies, which was initially flagged by the Commission on Audit.
During the Senate investigation, the panel learned that the PS-DBM purchased P8.6 billion worth of masks, face shields and PPEs, which were allegedly bought at a higher cost from Pharmally Pharmaceutical Corporation.
The auditing body said the department’s transfer of funds to the PS-DBM was made without a memorandum of agreements and certificates of previous liquidation.
In a separate decision, the Ombudsman also found Duque and Lao guilty of grave misconduct and conduct prejudicial to the best interest of the service.
It also ordered their dismissal from service, forfeiture of their retirement benefits, and perpetual disqualification for reemployment in government service.
