Christopher Lao, the former chief of the Procurement Service of the Department of Budget and Management (PS-DBM), was arrested in Davao City, the Philippine National Police (PNP) reported. Lao, who is at the center of a high-profile corruption scandal involving the controversial Pharmally Pharmaceutical Corp., was apprehended by members of the Criminal Investigation and Detection Group (CIDG) Region 11.
Lao is accused of favoring several companies, including Pharmally, in awarding government contracts for pandemic-related supplies. The scandal has raised significant controversy, as Pharmally was linked to former President Rodrigo Duterte through his former economic adviser, Michael Yang. Despite having only P625,000 in capital and no prior major government contracts, Pharmally was awarded contracts worth at least P8.5 billion to supply face masks, face shields, personal protective equipment (PPE), and test kits.
The arrest warrant for Lao was issued by the Sandiganbayan’s First Division, led by Chairperson Maria Theresa Mendoza-Arcega. The warrant, dated September 12, 2024, was issued for Lao’s alleged violation of Section 3 of Republic Act 3019, also known as the Anti-Graft and Corrupt Practices Act. Mendoza-Arcega, however, recommended a P90,000 bail for Lao.
Following his arrest, Lao, 47, was detained at the CIDG’s Regional Forensic Unit 11 in Davao City. The Senate had previously ordered his detention, and if convicted, Lao could face imprisonment along with Linconn Ong, one of the owners of Pharmally, who is also embroiled in the scandal.
The Office of the Ombudsman had earlier found probable cause to hold Lao and former Health Secretary Francisco Duque III accountable for their roles in the alleged graft. They were accused of bypassing legal requirements when the PS-DBM was tapped to procure medical supplies on behalf of the Department of Health (DOH) for a 4-percent service fee.
This arrest is part of the ongoing investigation into the Pharmally scandal, which has drawn widespread attention for the massive sums involved and the alleged political connections to the Duterte administration.