Sandigan asserts power to try Pharmally case
The Sandiganbayan has asserted its jurisdiction over a graft case involving a P600-million COVID-19 supply contract awarded to Pharmally Pharmaceutical Corp., rejecting claims that it should be handled by a regional trial court (RTC).
In a 43-page resolution promulgated on July 21, the Sandiganbayan’s Seventh Division ruled that the case falls within its authority under Republic Act (RA) No. 10660, which grants the antigraft court jurisdiction over cases involving government losses exceeding P1 million or those implicating high-ranking public officials.
The case charges officials of the Procurement Service-Department of Budget and Management (PS-DBM) and executives of Pharmally with violating Section 3(e) of the Anti-Graft and Corrupt Practices Act (RA 3019). They are accused of giving unwarranted benefits to Pharmally through a P600-million contract for COVID-19 testing kits awarded in June 2020.
The case had already been dismissed twice by lower courts for lack of jurisdiction—the Manila RTC Branch 39 on Sept. 9, 2024, and the Malolos, Bulacan RTC Branch 12, to which the case was later transferred, on Dec. 26, 2024.
In its ruling, the Malolos, Bulacan court argued that the size of the contract and the alleged irregularities implied significant financial damage to the government, putting the case under the jurisdiction of the Sandiganbayan.
Ombudsman’s argument
The Office of the Ombudsman, however, challenged the RTC’s ruling, insisting that the charges do not require proof of actual damage. It argued that this made the Malolos, Bulacan court the proper venue for the case under RA 10660.
The Sandiganbayan disagreed with the Ombudsman’s argument, saying the size of the contract and the nature of the alleged violations strongly suggest damage totaling over P1 million. It explained that RA 10660 does not require explicit proof of injury, only that the charges reasonably imply a significant financial impact.
“If the terms ‘damage’ and ‘bribery’ are to be interpreted in their plain, ordinary or generic meaning, instead of as technical terms or elements of crimes and offenses, a more reasonable and logical delineation on the jurisdiction of the Sandiganbayan and the [RTC] would emerge, befitting of the intent of the legislature to streamline the jurisdiction of the Sandiganbayan to let it focus its resources on the ‘most significant cases filed against public officials,’” the antigraft court’s resolution read.
It was referencing a quote taken from the Feb. 26, 2014, cosponsorship speech of former Sen. Franklin Drilon for Senate Bill No. 2318, the precursor to RA 10660.
Charged in the case are former PS-DBM officials Lloyd Christopher Lao, Warren Liong, Christina Suntay, Augusto Ylagan, Jasonmer Uayan, Webster Laureñana and Paul de Guzman.
Also named are Pharmally executives Twinkle and Mohit Dargani, Linconn Ong, Justine Garado, Huang Tzu Yen, Krizle Mago and Lin Weixiong.
The Senate blue ribbon committee previously investigated the Department of Health’s pandemic-related spending in 2022, including contracts handled by the PS-DBM.
P75,000 per test kit
According to the Ombudsman, PS-DBM officials violated the antigraft law when they awarded the P600-million contract to Pharmally in April 2020 for the procurement of 8,000 reverse transcription-polymerase chain reaction or RT-PCR test kits, putting the price at about P75,000 each.
The PS-DBM is also facing charges over two additional contracts for COVID-19 test kits: one in June 2020 worth P2.877 billion and another in April 2020 for P688 million.
Officials of the government agency are accused of awarding contracts to Pharmally despite the company’s poor financial standing, accepting delayed deliveries and allowing deviations from specifications such as improper product shelf-life without imposing penalties, even at the height of the country’s need for COVID-19 testing supplies.
The decision was penned by Associate Justice Ma. Theresa Dolores Gomez-Estoesta, chair of the Seventh Division, and signed by Associate Justices Georgina Hidalgo and Zaldy Trespeses.
