By Benjamin Cuaresma
MANILA — Former Senator Richard Gordon is expected to testify before the Sandiganbayan First Division when hearings on the high-profile Pharmally graft case resume on Aug. 3, as government prosecutors continue building their case against former Health Secretary Francisco Duque III and former Budget Undersecretary Christopher Lloyd Lao.
Prosecutors told the anti-graft court on Monday that Gordon—who chaired the Senate Blue Ribbon Committee that conducted the landmark 2021 investigation into the Pharmally controversy—may be among the next witnesses to take the stand.
The case centers on the alleged anomalous transfer of P41.46 billion in COVID-19 response funds from the Department of Health (DOH) to the Procurement Service of the Department of Budget and Management (PS-DBM) between March and December 2020.
The Office of the Ombudsman accused Duque and Lao of acting with “evident bad faith or gross inexcusable negligence” in approving the fund transfer, which allegedly enabled questionable procurement transactions during the height of the pandemic.
Of the total amount transferred, investigators said P11.5 billion was eventually paid to Pharmally Pharmaceutical Corp. for the purchase of face masks, face shields, COVID-19 test kits, and other medical supplies—transactions that became the focus of Senate inquiries and criminal complaints.
Government prosecutors maintain that the DOH, as the procuring agency, already had the legal authority to directly negotiate or purchase urgently needed medical supplies under emergency procurement rules. They argued that transferring the funds to the PS-DBM was unnecessary and exposed the government to irregular procurement practices.
Monday’s hearing featured testimony from two prosecution witnesses.
Jackie Lou Dimatulac, an administrative officer with the DOH Procurement Service, told the court during cross-examination that she had no authority to determine whether the DOH should procure supplies directly or course purchases through the PS-DBM. Presiding Justice Maria Theresa Mendoza-Arcega later excused the witness, noting that she had been presented mainly to authenticate official procurement documents.
The prosecution also presented Marilou Miranda-Carpio, a former sales manager of a small pharmaceutical supplier that had participated in DOH bidding activities during the pandemic.
Although the defense questioned the relevance of her testimony—arguing that her firm’s products were unrelated to the COVID-19 items cited in the charges—prosecutors said her testimony was intended to demonstrate that the DOH was capable of conducting its own procurement without relying on the PS-DBM.
The Sandiganbayan formally opened trial in June 2026, nearly two years after the Ombudsman filed graft charges against Duque and Lao in September 2024.
Prosecutors earlier disclosed they intend to present around 60 witnesses to support their case.
Both Duque and Lao have so far been absent from the trial proceedings after posting P90,000 bail each following the filing of the graft charges.
The anticipated testimony of Gordon—whose Senate investigation uncovered alleged procurement irregularities involving Pharmally during the COVID-19 pandemic—is expected to become one of the prosecution’s most closely watched presentations as the case moves forward.
ia/xf
