Duque, Lao face graft raps over P41.4B DOH fund transfer

Former Health Secretary Francisco Duque III and former Budget Undersecretary Lloyd Christopher Lao are facing graft charges before the Sandiganbayan for the alleged illegal P41.464 billion fund transfer from the Department of Health to the Procurement Service-Department of Budget and Management in 2020.

The Office of the Ombudsman recommended bail of P90,000 each for Duque and Lao.

Prosecutors allege the fund transfer caused undue injury to the government due to a 4% service fee charged by PS-DBM, amounting to P1.659 billion.

Duque is accused of authorizing the transfer in bad faith or negligence, despite the Department of Health having the capacity and proficiency to undertake procurement and the transfer not hastening project implementation.

Lao is accused of accepting the funds despite PS-DBM lacking the required supplies and the transfer not being provided under a memorandum of agreement, with required certifications of liquidation not submitted.

Former Sen. Richard Gordon stated that the filing of graft charges is only a partial step towards holding accountable the "real culprits" behind the scheme and urged for full accountability and transparency.