The Court of Appeals (CA) has upheld the dismissal of former procurement official Warren Rex Hernandez Liong over his involvement in the controversial Pharmally procurement deals during the COVID-19 pandemic, affirming his liability for grave misconduct and serious dishonesty.

In a decision by its Third Division, the appellate court sustained the ruling of the Office of the Ombudsman ordering Liong’s dismissal from government service, along with accessory penalties including perpetual disqualification from holding public office.

The case stemmed from the government’s emergency procurement of medical supplies at the height of the pandemic, which later became the subject of a Senate Blue Ribbon Committee investigation led by then Sen. Richard Gordon and Sen. Risa Hontiveros. 

The probe flagged alleged irregularities in multi-billion-peso contracts awarded to Pharmally Pharmaceutical Corp.

The Ombudsman found that Liong, then procurement group director of the Procurement Service of the Department of Budget and Management (PS-DBM), participated in approving procurement documents and processes that allegedly facilitated the awarding of contracts to Pharmally despite questions over its financial capacity and compliance.

Investigators cited irregularities including incomplete documentary requirements, questionable pricing, and deviations from standard procurement procedures.

Liong had argued in his defense that emergency procurement rules under Republic Act No. 11469, or the Bayanihan to Heal as One Act, justified expedited processes and relaxed compliance with regular procurement requirements. 

He also challenged the complaint’s validity, claiming procedural defects in its filing.

But the Court of Appeals rejected these arguments, ruling that emergency powers do not suspend the basic obligations of public accountability, transparency, and due diligence.

“Public office is a public trust,” the court stressed, adding that even during crisis conditions, government officials remain bound by constitutional and legal standards.

The appellate court also affirmed the Ombudsman’s authority to act on referrals stemming from congressional inquiries, including Senate committee reports, provided these are properly evaluated and validated.

In sustaining the ruling, the CA found substantial evidence that Liong knowingly took part in irregular transactions, including the approval of documents that misrepresented supplier qualifications and allowed procurement to proceed despite clear deficiencies.

The decision effectively reinforces the earlier Ombudsman finding that irregularities in the Pharmally procurement process constituted actionable misconduct, despite the emergency context of the pandemic response.