Former budget undersecretary Lloyd Christopher Lao, who was involved in the controversial purchase of medical supplies during the early stages of the COVID-19 pandemic, was arrested on Wednesday at his residence in Obrero, Davao City. The arrest was carried out by a tracker team from the Criminal Investigation and Detection Group (CIDG) based on a warrant issued by the Sandiganbayan First Division.
Lao faces charges stemming from complaints filed by former Senator Richard Gordon and Senator Risa Hontiveros related to the procurement of medical supplies from Pharmally Pharmaceutical Corp. during his time as chief of the Department of Budget and Management’s Procurement Service. The company secured P8.6 billion in contracts despite having limited capital and a brief operating history, raising suspicions of irregularities.
Hontiveros, in a statement following the arrest, urged Lao to reveal the true mastermind behind the alleged corruption. “Time to face the music, Atty. Lao… Aaminin na rin sana niya kung sino nga ba ang ‘big boss’ na may pakana at nakinabang sa korapsyon sa bilyon-bilyong COVID–19 funds,” Hontiveros said.
Lao is currently detained at the CIDG Regional Forensic Unit 11 in Davao City. His bail has been set at P90,000.
Pharmally’s contracts were scrutinized by several senators, who suggested that the company was favored due to its connections with Michael Yang, a former economic adviser to then-President Rodrigo Duterte. Both Yang and Duterte denied any wrongdoing, with Duterte asserting that the deals were above board.