Ex-DBM exec tagged in Pharmally mess arrested for graft in Davao City

Lloyd Christopher A. Lao–PHOTO FROM DBM WEBSITE

MANILA, Philippines (Updated) — Christopher Lao, the former Budget undersecretary tagged in the Pharmally mess, was arrested in Davao City on Wednesday over alleged graft, according to the Philippine National Police (PNP).

Lao, 47, was nabbed by PNP’s criminal investigation and detection group (CIDG) in Barangay 18B, Obrero through a Sandiganbayan first division’s arrest warrant dated Sept. 12.

Sandiganbayan 1st Division chair Maria Theresa Mendoza-Arcega issued the warrant against Lao for alleged violation of Section 3 of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.

Mendoza-Arcega, however, recommended a P90,000 bail for Lao.

As of this posting, Lao was detained in CIDG’s Regional Forensic Unit 11 in Davao City.

READ: Graft raps set vs Lao, 12 others in Pharmally mess

Ombudsman Samuel Martires previously confirmed to the Philippine Daily Inquirer that his office filed the graft case against Lao and former Department of Health (DOH) chief Francisco Duque III in the Sandiganbayan last month.

READ: Pharmally case reaches court, but sans ‘big fish’ – Gordon 

The Office of the Ombudsman earlier found probable cause to hold Duque and Lao liable for graft for failing to fulfill the requirements to tap the Procurement Service of the Department of Budget and Management for a purchase of medical supplies on behalf of DOH for a 4-percent service fee.

Pharmally, a months-old company with a paid-up capital of only P625,000 when the COVID-19 pandemic broke out, bagged P11-billion worth contracts to provide the various medical supplies, such as test kits, face shields, and personal protective equipment to the DOH, becoming the biggest single pandemic medical supplier who won such a government deal.

READ: The ‘original sin’ in Pharmally deal