P15.5-B CMS controversy resurfaces in House inquiry into DOH COVID-19 funds


The still unresolved controversy that shadowed the 2017 purchase of P15.5-billion combat management system for Philippine Navy frigates took center stage in the House Committee on Public Accounts inquiry into the reported mismanagement of P67.32 billion in COVID-19 funds by the Department of Health.

Philippine Navy Frigate

Committee chairman and Probinsyano Ako Partylist Rep. Jose “Bonito” C. Singson Jr.’s grilling of former Department and Management-Procurement Service (DBM-PS) Executive Director Christopher Lloyd Lao brought up the frigate issue as the lawmaker probed into Lao’s positions in government.

The House panel invited Lao to shed light into reports that he was behind the procurement of allegedly overpriced face masks and face shields by the DBM-PS last year.

Asked by Singson to explain his involvement in the issue surrounding the procurement of CMS for the frigates, Lao said he merely sent a letter to then former Navy Flag officer-in-command Vice Admiral Ronald Mercado informing the military official about the complaint against the purchase of the CMS for the frigates.

Lao, a former undersecretary at the Presidential Management Staff, said his role was merely to inform the PN about the issue and that they welcomed any response from officials.

But Singson apparently refused to buy Lao’s claim as he noted that the contents of the letter sent to the PN appeared imply more than what the former Malacanang official was willing to state.

During a Senate hearing on the same DOH funding issue, Lao’s name surfaced and was identified then as aid to Senator Christopher “Bong” Go during his stint as special assistant to the president.

Go’s name surfaced at the height of the controversy that surrounded the PN’s preference for CMS to be supplied by Tacticos CMS of Thales Nederlands Inc. over Hanwhat Thales (HTC).

Reports said Defense Secretary Delfin Lorenzana had asked Mercado to respond to the Malacanang letter. A marginal note handwritten by Lorenzana indicated that the query about the issue came from Go.

Go, who denied reports that Lao was his aid, also belied claims that he had intervened in the P15.5 billion frigate procurement.