Ex-DBM execs plead not guilty to graft over Pharmally deal

Former Department of Budget and Management (DBM) Undersecretary Lloyd Christopher Lao and ex-DBM Administrative Finance Group officer-in-charge director Arnold James Dupla pleaded not guilty on August 14, 2025, to graft charges.

The case involves alleged anomalies in the procurement of P4.16 billion worth of Covid-19 supplies, specifically 51,400 RT-PCR test kits, from Pharmally Pharmaceutical Corporation in 2020 and 2021.

The Ombudsman found that the Procurement Service-DBM, then headed by Lao, had awarded a multi-billion-peso contract to Pharmally, a startup firm with a capital of only P625,000, despite other capable suppliers.

Pharmally had no business activity from September to December 2019 and incurred a net loss of P25,550 that year, according to the Ombudsman's resolution signed in August 2023.

Pharmally officers Twinkle Dargani, Huang Tzu Yen, Justine Garado, Krizle Mago, and Lin Weixiong remain at large.

Other co-accused, including former DBM officials and Pharmally executives, have pending motions to quash and did not enter pleas.

The case will proceed to a preliminary conference.