FORMER Health Secretary Francisco Duque III and Procurement Service of the Department of Budget and Management head Lloyd Christopher Lao will face violation of anti-graft law before the Sandiganbayan for allegedly irregular transfer of P41.46B in COVID-19 funds, as confirmed by Ombudsman Samuel Martires.
The case stemmed from the transfer of the funds from the Department of Health to the PS-DBM for the procurement of various COVID-19 supplies in 2020 following a resolution released in May saying that evident bad faith or gross inexcusable negligence in the discharge of their duties as there was no need for the DOH to outsource the purchases to the PS-DBM.
The Office of the Ombudsman earlier ordered the filing of the case after finding probable cause to prosecute Duque and Lao.
The actions of Duque and Lao caused the DOH to abandon its duty to expeditiously acquire COVID-19 supplies, it said.
It said as well that Lao accepted the fund transfer for the procurement of items not in the PS-DBM inventory, and despite having doubts as to its capability to perform the task.
The transfer caused injury to the DOH, it said, noting that the PS-DBM subjected the procurements on behalf of the DOH to a 4 percent service fee. The injury amounted to at least P1.66 billion.
The case stemmed from the Senate Blue Ribbon Committee’s investigation of COVID-19 procurements during the Duterte administration.
