Sandiganbayan Takes Charge of Pharmally COVID-19 Case
The Sandiganbayan has firmly asserted its jurisdiction over the graft case involving the P600-million COVID-19 supply contract awarded to Pharmally Pharmaceutical Corporation. The court rejected arguments that the case should be under the regional trial court (RTC), emphasizing its authority under Republic Act No. 10660.
In a detailed 43-page resolution dated July 21, the anti-graft court’s Seventh Division declared that the case clearly falls within its jurisdiction. This law grants the Sandiganbayan authority over cases where government losses exceed P1 million or when high-ranking officials are implicated.
Background of the Case
The charges concern officials from the Procurement Service-Department of Budget and Management (PS-DBM) and Pharmally executives. They are accused of violating Section 3(e) of the Anti-Graft and Corrupt Practices Act by allegedly giving unwarranted benefits to Pharmally through a P600-million contract for COVID-19 testing kits awarded in June 2020.
Previously, two RTC branches dismissed the case for lack of jurisdiction. On September 9, 2024, Manila RTC Branch 39 dropped the charges. Then, after the case was transferred, RTC Malolos Branch 12 in Bulacan also dismissed it on December 26, 2024.
Legal Debate on Jurisdiction
RTC Malolos argued that the size of the contract and the alleged irregularities pointed to significant government losses, which should place the case under Sandiganbayan’s jurisdiction. However, the Office of the Ombudsman contested this, asserting that the charges did not require proof of actual damage, thus making the RTC the proper venue under RA 10660.
The Sandiganbayan disagreed, highlighting that the contract’s value and the nature of the violations strongly imply damage exceeding P1 million. The court clarified that the law does not demand explicit proof of injury but only that the charges reasonably suggest significant financial harm.
“Kung ang mga terminong ‘damage’ at ‘bribery’ ay bibigyang kahulugan sa kanilang plain, ordinary, o generic na kahulugan, sa halip na bilang teknikal na termino o elemento ng mga krimen at paglabag, lalabas ang mas makatwiran at lohikal na hangganan ng hurisdiksyon ng Sandiganbayan at RTC, na naaayon sa layunin ng lehislatura upang maisentro ang mga kaso ng Sandiganbayan sa mga pinakamahalagang kaso laban sa mga opisyal ng gobyerno,” the resolution quoted from a former senator’s speech regarding the law’s intent.
Individuals Charged and Investigation
The accused include former PS-DBM officials such as Lloyd Lao, Warren Liong, Christina Suntay, Augusto Ylagan, Jasonmer Uayan, Webster Laureñana, and Paul de Guzman. Pharmally executives Twinkle and Mohit Dargani, Linconn Ong, Justine Garado, Huang Tzu Yen, Krizle Mago, and Lin Weixiong are also named.
The Senate Blue Ribbon Committee previously probed the Department of Health’s pandemic-related expenditures, including contracts managed by PS-DBM. The Ombudsman claims that PS-DBM officials violated the Anti-Graft law when they awarded the P600-million contract in April 2020 for 8,000 RT-PCR test kits, priced at approximately ₱75,000 each.
Moreover, PS-DBM faces charges over two additional contracts worth ₱2.8 billion and ₱688 million respectively. Officials are accused of awarding contracts despite Pharmally’s poor financial standing, accepting delayed deliveries, and allowing deviations from contract specifications without imposing penalties—even during the critical need for testing supplies.
Final Notes on the Case
The Sandiganbayan’s decision was authored by Associate Justice Ma. Theresa Dolores Gomez-Estoesta, chair of the Seventh Division, and signed by Associate Justices Georgina Hidalgo and Zaldy Trespeses.
This ruling reinforces the court’s role in handling high-value graft cases involving public officials, aiming to streamline justice for significant government losses.
For more news and updates on Pharmally COVID-19 case, visit Filipinokami.com.
