MANILA — The Office of the Ombudsman has recommended filing graft charges against three former officials of the Procurement Service-Department of Budget and Management (PS-DBM) over their involvement in a controversial COVID-19 test kits contract with Pharmally Pharmaceutical Corporation.

In a resolution dated Aug. 14, the Ombudsman's office found that former PS-DBM executive director Lloyd Christopher Lao, former procurement group director Warren Rex Liong, and former procurement management officer Paul Jasper De Guzman had caused undue injury to the government worth P4.165 billion.

• DBM, DOH, Ombudsman officials suspended over Pharmally mess

The Ombudsman also recommended the filing of graft charges against Pharmally executives Twinkle Dargani, Mohit Dargani, Linconn Ong, Justine Garado, and Huang Tzu Yen.

Ombudsman Samuel Martires approved the resolution on Aug. 18.

The resolution mentioned three tranches of contracts entered into with Pharmally for RT-PCR test kits amounting to P600 million, P688 million and P2.877 billion.

The Ombudsman noted that the former officials favored Pharmally over One Top Medical Systems Resources that had offered the same prices as Biosite Medical Instruments, Inc., one of the suppliers included in the Suppliers Directory for Bayanihan Act.

“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,” the Ombudsman said.

The investigation of the Ombudsman stemmed from the complaint filed by former senator Richard Gordon and Senator Risa Hontiveros, who both conducted Senate inquiries on the contract.

• What the facts: All about Pharmally

The three former PS-DBM officials, as well as former procurement management officer Webster Laureñana, were also held administratively liable as they were found guilty of grave misconduct, gross neglect of duty, serious dishonesty and conduct prejudicial to the best interest of the service.

The Ombudsman ordered their dismissal from government service, forfeiture of retirement benefits, and perpetual disqualification in government.

The Ombudsman noted that Lao signed the three notices of award and contract agreement all dated April 22, 2020 in favor of Pharmally.

Lao and Liong also signed the Price Analysis Report prepared by De Guzman.

“There is no doubt that without the individual acts of the aforementioned respondents, the procurement of test kits would not have materialized,” the Ombudsman said.

• What is Pharmally Pharmaceuticals? Who controls it?

Lawyer Ferdinand Topacio, who represents the Pharmally officials involved in the mess, said he was "greatly saddened by the indictment of certain private persons," calling the 2021 Senate inquiries a "kangaroo court."

"While we respect the resolution of the Ombudsman, we hope it is not true, as we have heard, that pressure was brought to bear by some politicians in an attempt to redeem themselves or to boost their political stock," Topacio said.

He also said his camp was "prepared to exhaust all remedies under the law to assail the indictments" and prove that his clients had "done nothing wrong."

The DBM said in a statement it will the fully comply with the recent decision of the Ombudsman.

"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 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."

REACTIONS

Former and incumbent senators who participated in the Pharmally investigation lauded the Ombudsman’s recommendation.

"It only goes to show that any form of corruption will be met with severe consequences. Our duty is to ensure that public funds are utilized for the benefit of the people, particularly during emergencies,” said Former Senate President Franklin Drilon, who actively took part in the previous Senate Blue Ribbon Committee investigation as Minority Leader.

Former Sen. Panfilo Lacson on the other hand expressed his surprise that one personality who was repeatedly and prominently mentioned in the supposed deals was not charged by the Ombudsman.

“That being said, I am willing to concede that maybe the evidence is not sufficient to establish probable cause against him,” he said.

For Hontiveros, the Ombudsman’s ruling on the Pharmally case must serve as a stern warning to those who are planning to pocket government funds.

“Darating at darating ang hustisya,” Hontiveros said.

Sen. Francis Tolentino, the current Blue Ribbon Committee chairman, said the Ombudsman’s ruling only showed that the latter can really act on any issue “motu proprio” even without their committee report.

—With reports from Sherrie Ann Torres, ABS-CBN News

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