Lacson: Ex-PS-DBM OIC Lao Violated Anti-Graft Law with Huge Pharmally Contracts

Lloyd Christopher Lao, ex-OIC of the Department of Budget and Management Procurement Service (PS-DBM), violated the Anti-Graft Law by giving Pharmally Pharmaceuticals Corp. huge contracts way beyond its Net Financial Contracting Capacity (NFCC), Sen. Panfilo M. Lacson bared Thursday.

At the Senate Blue Ribbon hearing on irregularities involving the procurement of medical supplies to deal with the Covid pandemic, Lacson said Pharmally had a net working capital of P599,450 and could only be given a maximum contract of P5.994 million.

Yet, Pharmally bagged its first contract amounting to P13.86 million – more than twice the maximum – and even got a second contract amounting to P54 million, all within the same year, Lacson said, citing documents so far obtained during the hearing.

Related: Ping: Ex-PS-DBM OIC Lao, Sabit sa Anti-Graft Law

“Bakit una pa lang na delivery, nasa P13 milyon agad mahigit? May violation agad dito (Why is it that in its first delivery, it already raked in more than P13 million? Here we can immediately see the violation),” Lacson said.

“They have no financial capability pero pinapasok nila (Pharmally had no financial capability but got these huge contracts),” he added.

He told Senate Blue Ribbon panel chairman Richard Gordon that he may include in his preliminary committee report this “clear violation” of the Anti-Graft Law, where the administrative requirement was not followed.

Lacson pointed out that Lao exceeded his authority or did not follow the provisions of the Procurement Law.

“Mag-agree kayo sa akin, in-exceed ni Lao ang kanyang authority o hindi sinunod ang alituntunin sa Procurement Law, na times 10 lang ng maximum sa net working capital (You will agree with me that Lao exceeded his authority or did not follow the Procurement Law’s provision on the net working capital),” he said.

Lacson noted the NFCC is part of the eligibility documents of bidders under the Government Procurement Policy Board (GPPB) Resolution 16-2020.

Citing Pharmally’s Statement of Financial Position, Lacson noted Pharmally in 2019 had a net working capital of P599,450, and an NFCC of P5,994,500.

“Dapat maximum na makuhang kontrata ng Pharmally, hindi lalampas ng P5.9 milyon (Pharmally should not have gotten a contract exceeding P5.9 million),” Lacson said.

Yet Pharmally, despite its lack of financial capacity, was awarded some P11.11 billion in contracts from the government, Lacson said.

“Hindi dapat bigyan ng kontrata na higit sa 10 times ng net working capital. Lumampas sila. Nasundan pa ito ng katakot-takot na delivery (Pharmally should not have been given a contract that is more than 10 times its net working capital. Yet it got hefty deliveries),” he said.