Ex-budget official Lao arrested over P11.5B COVID funds

Former budget undersecretary Lloyd Christopher Lao was arrested in Davao City on Wednesday via a warrant from the Sandiganbayan First Division for alleged corruption involving billions in COVID-19 funds.

The arrest stems from complaints filed by former Senator Richard Gordon and Senator Risa Hontiveros.

Senator Hontiveros urged Lao to reveal the identity of the "big boss" behind the alleged corruption.

Pharmally Pharmaceutical Corp., a startup with limited capital, secured over P11.5 billion in government healthcare supply contracts during the pandemic.

Gordon expressed reservations about the P90,000 bail set for Lao, considering the billions of pesos allegedly stolen.

Gordon also stated that former President Rodrigo Duterte should be held liable for the Pharmally controversy, citing alleged intimidation of the Commission on Audit and protection of individuals involved.

In August, the Office of the Ombudsman filed graft charges against Lao and former Health Secretary Francisco Duque III over an alleged illegal P41 billion fund transfer from the DOH to the PS-DBM in 2020.