Ombudsman files graft charges against Duque, Lao over P41B DOH fund transfer

The Ombudsman filed criminal charges against former Health Secretary Francisco Duque III and former Procurement Service-Department of Budget and Management (PS-DBM) Undersecretary Lloyd Christopher Lao before the Sandiganbayan on Wednesday, August 28.

The case involves a P41.464 billion fund transfer by the Department of Health to PS-DBM in March to December 2020 for COVID-19 supplies including medical equipment and personal protective gear.

Prosecutors accuse Duque and Lao of violating RA 3019 due to a 4% service fee charged by PS-DBM totaling P1.659 billion, alleging that Duque acted in bad faith or negligence.

The Ombudsman's May decision stated the DOH had no legal obligation to transfer funds to PS-DBM for supplies during an emergency and direct procurement would have saved over a billion pesos.

Opposition Senator Risa Hontiveros and former Senator Richard Gordon initially filed complaints leading to this case, with both listed as potential witnesses for prosecution.