Davao City — Authorities arrested lawyer Lloyd Christopher Lao, former Executive Director of the Procurement Service of the Department of Budget and Management (PS-DBM), around 11 a.m. on Wednesday, September 18, in Ecoland, Davao City. Lao faces charges under the Anti-Graft and Corrupt Practices Act in connection with the alleged anomalous awarding of P4 billion worth of contracts for COVID-19 test kits.
According to Criminal Investigation and Detection Group (CIDG) operative, Lao was apprehended by a joint team from CIDG XI, the Regional Special Operating Team (RSOT11), and the CIDG National Capital Region Field Unit (NCRFU) with the support of the Davao City field unit. The arrest was based on a warrant issued by the Sandiganbayan First Division in Quezon City, presided over by Chairperson Maria Theresa Mendoza-Arcega, on September 12, 2024.
Lao is accused of violating Section 3(e) of Republic Act 3019, also known as the Anti-Graft and Corrupt Practices Act, which penalizes public officials who cause undue injury to any party, including the government, or give any private party unwarranted benefits through manifest partiality, evident bad faith, or gross inexcusable negligence. The recommended bail for Lao’s temporary release is set at P90,000.
Following his arrest, Lao was brought to the CIDG RFU11 office for processing.
Case Background
Lloyd Christopher Lao came under scrutiny in 2021 during Senate hearings probing the alleged irregularities in the government’s procurement of pandemic supplies. As the head of PS-DBM, Lao was linked to the controversial P42 billion fund transfer from the Department of Health to PS-DBM for the purchase of medical supplies, which included the purchase of COVID-19 test kits, personal protective equipment (PPE), and face masks. This led to widespread allegations of overpricing and favoritism in awarding contracts, notably involving Pharmally Pharmaceutical Corporation.
Lao’s involvement in these transactions raised questions over the transparency and integrity of the procurement process, which sparked a series of investigations by the Senate Blue Ribbon Committee. He faced intense scrutiny for allegedly awarding multi-billion-peso contracts to unqualified suppliers at the height of the pandemic. These contracts were part of the government’s response to the COVID-19 crisis, intended to secure medical supplies rapidly, but became the subject of corruption accusations.
Ongoing Investigation
Lao’s arrest on charges related to the procurement of COVID-19 test kits is part of the continuing effort to hold accountable those involved in alleged anomalies during the government’s pandemic response. Authorities have stated that they will pursue all leads and individuals implicated in the case, signaling a broader crackdown on corruption related to COVID-19 procurement deals.
Public Response
The arrest of Lao has reignited public interest in the unresolved issues surrounding pandemic supply deals. Advocacy groups and concerned citizens have welcomed the arrest as a step toward justice, hoping that it will pave the way for a more thorough investigation and accountability for all those involved.
Lao’s legal team has yet to issue a formal statement, and it remains unclear how they plan to respond to the charges. His upcoming court proceedings will likely shed more light on the allegations and his defense against the accusations.
For now, the case continues to develop, with more potential revelations expected in the coming days.
