Ombudsman orders filing of graft raps vs. Lao, ex-DBM officials, Pharmally execs

The Office of the Ombudsman has ordered the filing of three counts of graft charges against former Budget undersecretary Christopher Lao, two other former Budget executives, and Pharmally officials in connection with the government’s purchase of P4 billion worth of RT-PCR test kits.

“There is no doubt that without the individual acts of the aforementioned respondents, the procurement of the test kits would not have materialized. Respondents concerted and conspirational acts enabled the award of the multi-billion worth of contract to Pharmally, notwithstanding the existence of other corporations that are financially and technically capable to supply and deliver test kits at lower prices,” the Ombudsman said in its 37-page resolution.

Aside from Lao, also ordered indicted for three counts of graft were former DBM procurement director Warren Liong, DBM procurement management officer Paul Jasper de Guzman, and Pharmally officials Twinkle Dargani, Linconn Ong, Justine Garado, and Huang Tzu Yen.

The Ombudsman said Pharmally got the huge P4 billion government contract even if its paid up capital is only P625,000.

“Said award to Pharmally was a complete disregard of the provision that the procuring entity should directly negotiate or procure from a legally, technically and financially capable supplier, distributor, manufacturer, contractor or consultant as embodies in the Government Procurement Policy Board and the Procurement law,” it added.

Likewise, the Ombudsman said that public officials accused in this case allowed the further delay of delivery of test kits, even though they alleged of its urgent need to ramp up the testing capacity due to the spread of COVID-19 throughout the country.

“Allowing the several delays of delivery provided Pharmally an excuse and additional period to comply with its obligation. This act is clear evidence of public respondents’ manifest partiality toward said company,” it further said.

Finally, the anti-graft body said the public respondents favored Pharmally over One Top Medical Systems Resources which offered the same prices as the former and Biosite Medical Instruments, Inc., one of the suppliers included in the suppliers directory of the government.

“They apparently acted with manifest partiality and in bad faith for unlawfully and willingly awarding the contracts to a newly incorporated corporation and without any business experience with the government,” it said.

In response to the Ombudsman’s decision, the camp of Pharmally officials maintained that they are not liable for graft or any form of corruption.

“We are greatly saddened by the indictment of certain private persons who compose Pharmally Pharmaceutical Corporation, especially Mohit Dargani, Linconn Ong, Huang Tzu Yen and Ms. Twinkle Dargani, by the Ombudsman,” lawyer Ferdinand Topacio, the counsel for the Pharmally officials, said in a statement.

“We are prepared to exhaust all remedies under the law to assail the indictments, and look forward to our day in court, where we can – once and for all – prove that these persons have done nothing wrong, and that these charges stemmed from a political vendetta which has ultimately backfired on its authors, and will continue to haunt these politicians,” he added.

DBM to comply

In a separate statement, the DBM said it will fully comply with the Ombudsman decision against former Budget, Procurement Service, and Pharmally officials.

“Secretary [Amenah] Pangandaman has directed PS-DBM Executive Director Dennis Santiago to enforce the decision concerning former PS-DBM Director Warren Liong and Procurement Management Officer Paul Jasper de Guzman, as well as Webster Laurenana, August Ylagan, Jasonmer Uayan, and Christine Marie Suntay,” the Budget Department said.

“The DBM will likewise comply with the Ombudsman’s decision regarding former DBM Undersecretary Christopher Lao, as he was formerly part of the agency,” it said.

The DBM that since the Budget officials were separated from the agency prior to the decision, “the dismissal penalty will be converted into a fine equivalent to one year's salary of the respondents.”

The Ombudsman slapped the penalty of dismissal from service, forfeiture of all retirement benefits, and perpetual disqualification from reemployment in the government service against the DBM officials.

“The DBM holds steadfast in its commitment to uphold the principles of transparency, good governance, accountability, and strict adherence to the rule of law,” the agency said.—Ted Cordero/AOL, GMA Integrated News