Lao liable for anti-graft law on Pharmally deals, Lacson says

FORMER Budget Undersecretary Lloyd Christopher Lao is liable under the Anti-Graft Law after Pharmally Pharmaceutical Corp. won billions of pesos worth of contracts in pandemic supplies, Senator Panfilo M. Lacson said Thursday.

During the Senate Blue Ribbon Committee hearing, Lacson said Pharmally secured contracts beyond its net financial contracting capacity (NFCC).

Earlier, the Srenate found out that Lao was in charge of handling some P42 billion in funds that the Department of Health (DOH) transferred to the Department of Budget and Management's procurement service (PS-DBM) without proper documentation.

At the hearing on irregularities involving the procurement of COVID 19-related medical supplies, Lacson said Pharmally had a net working capital of P599,450 and could only be given a maximum contract of P5.994 million.

Yet, Pharmally bagged its first contract amounting to P13.86 million – more than twice the maximum – and even got a second contract amounting to P54 million, all within the same year, Lacson said, citing documents so far obtained during the hearing.

“Bakit una pa lang na delivery, nasa P13 milyon agad mahigit? Here we can immediately see the violation,” Lacson said.

Pharmally had no financial capability but got these huge contracts, he added.

Lacson told Senate Blue Ribbon panel chairman Richard Gordon that he might include in his preliminary committee report this “clear violation” of the Anti-Graft Law, where the administrative requirement was not followed.

Lacson pointed out that Lao did not follow the provisions of the Procurement Law.

“You will agree with me that Lao exceeded his authority or did not follow the Procurement Law’s provision on the net working capital,” he said.

Lacson noted the NFCC is part of the eligibility documents of bidders under the Government Procurement Policy Board (GPPB) Resolution 16-2020.

Citing Pharmally’s Statement of Financial Position, Lacson noted Pharmally in 2019 had a net working capital of P599,450, and an NFCC of P5,994,500.

Lacson said Pharmally should not have gotten a contract exceeding P5.9 million.

Yet Pharmally, despite its lack of financial capacity, was awarded some P11.11 billion in contracts from the government, Lacson said.

“Pharmally should not have been given a contract that is more than 10 times its net working capital. Yet it got hefty deliveries,” he said. (Ben Balce)