The Sandiganbayan First Division has started proceedings in the graft case against former Health Secretary Francisco Duque III and former Budget Undersecretary Lloyd Christopher Lao over the alleged unlawful transfer of P41.46 billion for the procurement of supplies during the Covid-19 pandemic.

The funds were reportedly transferred to the Procurement Service of the Department of Budget and Management (PS-DBM) in 2020 for the purchase of items such as personal protective equipment kits and test kits.

Citing alleged irregularities in the transaction, the Office of the Ombudsman filed charges against Duque and Lao, including graft, grave misconduct, gross neglect of duty and conduct prejudicial to the best interest of the service.

During a previous House Committee on Appropriations hearing, the former Department of Health chief said former President Rodrigo Duterte had influenced the decision to use the funds through the PS-DBM.

“Publicly, this was made by the President in our meetings in the weekly meeting or talk to the people,” Duque stated.

The Senate Blue Ribbon Committee also conducted its own investigation into the matter.

The committee cited findings by the Commission on Audit confirming that P41.46 billion was transferred from the Department of Health to the PS-DBM from March to December 2020.