Youth group files graft, administrative complaints vs. Lao, Pharmally execs

A youth organization has filed graft and administrative complaints against former Undersecretary Christopher Lloyd Lao as well as executives of Pharmally Pharmaceutical Corporation, among others, over the P8-billion medical supply purchase made by the government to Pharmally amid the COVID-19 pandemic.

In its complaint filed before the Office of the Ombudsman on Thursday, the Samahan ng Progresibong Kabataan (SPARK) said charges should be filed against Lao, former presidential economic adviser Michael Yang, Overall Deputy Ombudsman Warren Rex Liong, Pharmally executives Mohit and Twinkle Dargani, and Pharmally financial adviser Lin Weixiong and Rose Nono Lin, the corporate treasurer and incorporator of Pharmally Biologicals Incorporated.

Spark's spokesperson John Lazaro cited that instead of awarding the contract for the purchase of RT-PCR test kits to another supplier with a price proposal of P62,500, PS-DBM awarded the contract to Pharmally despite a price proposal of P69,000, or more than ten percent higher than the disqualified bidder.

“If we are looking at the most glaring proof of undue injury to the government, it is this transaction. With P300 million saved, the government could have procured an additional 500,000 vaccines, or an additional 5,000 test kits using the disqualified bidder’s price proposal," Lazaro said.

“The facts are simple: the Filipino people were swindled out of billions, in a time when even our next meal is uncertain. Because of this conspiracy by public and private respondents to defraud the government, the government has overspent at least P300 million in public funds because PS-DBM disqualified other suppliers who had submitted a bid only 17 minutes too late," he added.

Likewise, the complainants questioned why Pharmally was allowed to deliver supplies to the Procurement Service-Department of Budget and Management (PS-DBM) even without purchase orders.

Spark also hit Lin's underreporting of her actual assets to the Blue Ribbon Committee which included some P100 million worth of holdings, four luxury cars, among others.

“They must be held to account for the grave crimes they have committed against the Filipino masses who continue to struggle against the effects of the pandemic,” Lazaro said.

The respondents have previously denied irregularities in the deal, and no less than President Rodrigo Duterte has said that all deals with Pharmally are above board.—LDF, GMA News