Ombudsman affirms raps vs ex-DBM execs in Pharmally mess
MANILA, Philippines — The Office of the Ombudsman has affirmed its earlier ruling finding probable cause to file graft cases before the Sandiganbayan against former top officials of the Procurement Service of the Department of Budget and Management (PS-DBM) in connection with the Pharmally procurement mess amounting to P11.5 billion.
In an 18-page order approved by Ombudsman Samuel Martires on May 2, the anti-graft agency denied the supplemental motion for reconsideration of former PS-DBM executive director Lloyd Christopher Lao, seeking the reversal of its Aug. 14, 2023 resolution finding probable cause to file graft charges against him and several other former PS-DBM officials.
The ombudsman found no merit in Lao’s argument that the awarding of supply contracts worth billions of pesos to Pharmally Pharmaceutical Corp. was done in good faith.
Lao, in his motion, argued that Republic Act 11469 or the Bayanihan To Heal as One Act and the Government Procurement Policy Board Resolution No. 01-2020 neither require a minimum number of years of corporate existence nor a minimum paid-up capital to be considered a legally, technically and financially capable bidder.
The ombudsman, however, maintained that the procurement transactions were attended with irregularities.
The ombudsman said Pharmally not only lacked any business operations, but was even under financial losses prior to the awarding of the contracts.
“Pharmally’s funds came from its irregular transactions with PS-DBM. Its financial statements indicate that prior to the 2020 dealings with the PS-DBM, the company had no business activity from September to December 2019. Pharmally even incurred a net loss of P25,550.00,” the ombudsman’s order read.
When PS-DBM awarded procurement contracts to Pharmally in 2020, the corporation earned a net taxable income of P318,337,099 with a declared net of P7,485,401,046, according to the ombudsman.
The ombudsman maintained that Lao, former PS-DBM procurement group director and erstwhile overall deputy ombudsman Warren Lex Liong and former PS-DBM procurement management officer Paul Jasper de Guzman must be charged with three counts each of violation of Republic Act 3019 or
