EX-DBM EXEC IN PHARMALLY MESS NABBED, POSTS BAIL

A FORMER high-ranking official of the Procurement Service of the Department of Budget and Management (DBM) linked to the Pharmally procurement scandal at the height of the COVID-19 pandemic in 2020 on Wednesday was arrested  by agents of the Philippine National Police – Criminal Investigation and Detection Group  (PNP-CIDG) in Davao City.

Ex-Undersecretary and OIC Executive Director of the PS-DBM  Lloyd Christopher Abellana Lao was arrested in Ecoland, Davao City around 11 a.m. Wednesday.  He posted a P90,000 bail for his temporary liberty.

According to PNP-CIDG director Maj. Gen. Leo M. Francisco, joint operatives from the CIDG Regional Field Unit 11 and CIDG National Capital Region Field Unit served the warrant of arrest issued against Lao by Judge Maria Theresa V. Mendoza-Arcega,  chairperson of the First Division of the Sandiganbayan, Quezon City, for violation of Section 3(e) of Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act, with a recommended bail of P90,000.

Lao’s arrest stemmed from alleged acts of gross inexcusable negligence and evident bad faith during his tenure as OIC of PS-DBM. 

He was accused of conspiring with other public officials, including then Department of Health Secretary Francisco Tiongson Duque III, to cause undue injury amounting to P1.65 billion to the DOH and the public. 

Lao was accused of involvement in the alleged anomalous transfer of P41 billion from the DOJ to the PS-DBM to procure COVID-19 medical supplies, including Personal Protective Equipment, COVID-19 detection kits, nucleic acid extraction machines, mechanical ventilators, surgical masks and cadaver bags at the height of the pandemic.