Ex-Sen. Gordon may testify in Pharmally trial

MANILA, Philippines — Former Sen. Richard Gordon may testify in the trial of the Pharmally corruption scandal before the Sandiganbayan First Division, government prosecutors said on Monday. Prosecutors said they may present Gordon as early as the next court hearing on Aug. 3. The First Division is trying the graft case against former Department of Health (DOH) Secretary Francisco Duque III and former Department of Budget and Management (DBM) Undersecretary Christopher Lloyd Lao over the alleged anomalies in the transfer of P41.46 billion in Covid-19 response funds. In 2021, the Senate Blue Ribbon Committee, led by Gordon, began its probe into the alleged “suspicious” transfer of funds from the DOH to the Procurement Service (PS) of the DBM. Pharmally Pharmaceutical Corp. came under scrutiny after securing billions of pesos worth of government contracts for medical supplies during the pandemic. The transactions became the subject of Senate investigations and multiple cases over alleged irregularities in the procurement process. Duque and Lao face graft charges over the alleged anomalies in the transfer of P41.46 billion in pandemic response funds. The Office of the Ombudsman said P11.5 billion of the amount was paid to Pharmally to supply face masks, face shields, test kits, and other medical items during the pandemic. READ: Duque grilled over COVID-19 fund spending ‘deficiencies’ Government prosecutors alleged that Duque and Lao “acted with evident bad faith or gross inexcusable negligence” in their capacities as heads of the DOH and the PS-DBM when the fund transfer between their agencies took place from March to December 2020. The Office of the Ombudsman said the DOH, then led by Duque, should have first determined whether tapping the PS-DBM would expedite the procurement of personal protective equipment needed by public health workers at the height of the COVID-19 pandemic. Prosecutors said the DOH, as the procuring entity, had the authority to directly negotiate or purchase essential medical supplies, making it unnecessary to seek the services of the PS-DBM. The Sandiganbayan trial began last June, more than a year after the Office of the Ombudsman filed the case against Duque and Lao before the anti-graft court in September 2024. Prosecutors initially said they could present up to 60 witnesses to testify against Duque and Lao. READ: Duque wants graft case in Sandigan junked In previous trials, three witnesses took the stand, including those from the Commission on Audit and Office of the Ombudsman. READ: Ex-DBM exec tagged in Pharmally mess arrested for graft in Davao City For Monday’s trial, two witnesses took the stand. The first was Jackie Lou Dimatulac, an administrative officer of the DOH’s Procurement Service. During the defense’s cross-examination, Dimatulac said it was not part of her duties to decide whether the DOH could procure supplies on its own instead of tapping the PS-DBM. Associate Justice Maria Theresa Mendoza-Arcega, chairperson of the First Division, then excused Dimatulac. “See, that’s it,” Mendoza-Arcega said in jest, noting that Dimatulac appeared nervous. According to the prosecution, Dimatulac was called to testify only to certify pertinent documents. Next to testify was Marilou Miranda-Carpio, who now works as a sales manager of a trading company not related to the case. Miranda-Carpio previously worked as a sales manager for another pharmaceutical firm — a sole proprietorship with only two employees — that joined the bidding process to supply the DOH with medical supplies such as boxes of gloves and gallons of hydrochloride. However, Lao’s defense lawyer noted that the information alleged irregularities in the procurement of COVID-19 items, including test kits, face masks, and personal protective equipment, not the items Miranda-Carpio’s firm supplied to the DOH. Still, prosecutors said Miranda-Carpio was called to testify to show that the DOH could procure supplies on its own instead of tapping the PS-DBM, having joined the bidding process. So far, Duque and Lao have not attended the trial since it began. Both of them also posted a P90,000 bail each for graft in 2024. /mcm