Former PS-DBM exec Lao arrested in Davao City

Lloyd Christopher Lao, the former officer-in-charge of the Department of Budget and Management - Procurement Service (PS-DBM), was arrested in Davao City on Wednesday, the Philippine National Police - Criminal Investigation and Detection Group (CIDG) said.

In a police report, the CIDG around 11 a.m. served Lao with an arrest warrant issued by the Sandiganbayan dated September 12 for an anti-graft and corrupt practices law offense.

The bail is set at P90,000.

Lao was brought to the CIDG Regional Field Unit 11 office for documentation and proper disposition, according to the CIDG.

In August, the Office of the Ombudsman filed graft charges against Lao and former Health Secretary Francisco Duque III over an alleged illegal fund transfer during the COVID-19 pandemic.

According to the criminal information that was filed with the Sandiganbayan, the Department of Health's (DOH) transfer of P41 billion to the Procurement Service-Department of Budget and Management (PS-DBM) in 2020 during the height of the pandemic was illegal and without basis.

The fund was for the procurement of medical supplies for the pandemic, including detection kits, nucleic acid extraction machine, mechanical ventilator, personal protective equipment, surgical mask, cadaver bag, and various test kits.

The Ombudsman said Duque authorized the transfer of the fund even though it would not hasten the implementation of the project and despite the fact that the DOH had the capacity and proficiency to undertake the procurement.

Lao, on the other hand, was charged with graft since the PS-DBM, where he served as executive director, accepted the P41-billion fund transfer and subjected the DOH procurement to a 4% service fee amounting to at least P1.65 billion.

Duque has said the graft charge is baseless but expressed confidence that he would be able to prove his innocence before the Sandiganbayan. — RSJ, GMA Integrated News