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Ex-DBM exec Lao grilled over P15.5-B Navy frigate deal

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Former Budget undersecretary Christopher Lao was grilled Thursday over his alleged involvement in the Philippine Navy frigate project.

During the House committee on public accounts inquiry over the Department of Health's utilization of COVID-19 funds, panel chairperson Representative Jose Bonito Singson raised and inquired about the national government's acquisition of two frigates from South Korea.


Singson asked Lao if he had any involvement in the procurement of the two frigates given his former post at the Presidential Management Staff.

"Did you have any participation during this time regarding the transaction involving the two frigates?" Singson asked.

Lao denied that he was involved in the said transaction: "No, Mr. Chair."

Singson pressed Lao if he was aware of any details about the said purchase of Navy assets: "You were not aware of it or not involved at all in whatever way?"

Lao again answered in the negative.

Singson then told Lao that he had a copy of a note, which was supposedly signed by the latter, that was addressed to former Philippine Navy Flag Officer in Command Vice Admiral Ronald Joseph Mercado.

"How does this... we have a copy here of a note which you purportedly made addressed to Admiral Mercado dated... in January 2017. You signed inviting Rear Admiral Robert Empedrad to a meeting in Malacañang in relation to the planned purchase of two brand new frigates for the Philippine Navy worth P15.5 billion," Singson said.

Lao then confirmed that he wrote a letter because a complaint was filed about the procurement of frigates. Lao previously worked as undersecretary at the Presidential Management Staff, which, according to him, handles complaints filed in the implementation of projects.

"That was crafted when there was a complaint regarding the said purchase," Lao said.

To recall, the P15.5 billion frigate deal became controversial after Mercado was You do not have permission to view the full content of this post. Log in or register now. for alleged insubordination and supposedly “jeopardizing” the frigate deal.

Former Special Assistant to the President and now Senator Christopher “Bong” Go’s was also dragged into the issue for his alleged intervention in the selection of the Combat Management System (CMS) supplier for two Navy warships. You do not have permission to view the full content of this post. Log in or register now. it.

President Rodrigo Duterte also You do not have permission to view the full content of this post. Log in or register now. Go.

Lying?

Meanwhile, for Singson, it seemed Lao was lying for saying that he had no participation in the said purchase of assets because of the "note" which had Lao's signature.

Lao insisted that the procurement process was done by the previous administration.

"We write official letters for them to be apprised that there are complaints and if they wish to respond and air their side, we allow them so we can put on record what is their side and we just note it so if it will be evaluated in the future, we have an idea on what those issues are," said.

"On that particular note, we just wrote them a letter and they informed us when they went to the office, actually they presented what the project is all about and that's the time we understood that it was already a contract entered early in 2016. I think as early as May or April and the turnover of the project is commencing at that time," he explained.

Lao also clarified that he did not make notes, but only letters.

"I signed a letter. I don't make notes, Mr. Chair. Maybe if there's a note it's from head of offices talking to each other... I'm not sure of that, I just made a letter, submit it to the person who is subject to the issue and I furnish a copy to our head of office," Lao said.

Lao's name was dragged into the controversy involving the Department of Health's use of its COVID-19 funds.

It was bared that he was the chief of the Procurement Service - Department of Budget and Management when the agency procured face masks at P27.22 each and face shields priced at P120 each.

Lawmakers have questioned this for being "overpriced."—AOL, GMA News

This article You do not have permission to view the full content of this post. Log in or register now. was originally published in You do not have permission to view the full content of this post. Log in or register now..
 

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