MANILA—The Sandiganbayan has allowed two Department of Health (DOH) officials to testify in the graft case against former Health Secretary Francisco Duque III and former Budget Undersecretary Lloyd Christopher Lao over the alleged irregular transfer of P41 billion in government funds during the COVID-19 pandemic.

The anti-graft court’s First Division rejected the defense’s bid to disqualify Dawnavi Lacsado and Abegail Conchada, administrative officers who served in the DOH’s COVID-19 Vaccination Plan (COVAC) Secretariat.

The prosecution intends to use their testimonies to establish the DOH’s capacity to procure medical supplies independently rather than through the Procurement Service of the Department of Budget and Management (PS-DBM).

Defense lawyers opposed their presentation, arguing that the officials’ accounts would duplicate previous testimonies and could prejudice the accused’s right to a speedy trial.

The prosecution countered that the motion to disqualify the witnesses had no factual or legal basis.

During cross-examination, both witnesses said they had no personal knowledge of the policy decisions behind the transfer of funds from the DOH to the PS-DBM, including the choice of procurement channel.

Lacsado also rejected the defense’s suggestion that her responsibilities were limited to compiling procurement-related documents, replying, “No.”

Conchada, meanwhile, explained that the COVAC Secretariat initially held meetings online but later reduced the number of participants required to attend because of logistical difficulties, including internet connectivity problems.

“The COVAC [teams] are all working,” she said when asked whether the teams operated with a skeletal or reduced workforce during the pandemic.

The proceedings also covered the prosecution’s compliance with the court’s directive to explain the purpose of presenting its 54 listed witnesses.

First Division chairperson Associate Justice Maria Theresa Mendoza-Arcega noted that the prosecution had not sufficiently specified the purpose of each witness’s testimony. The court granted additional time for the submission of the required compliance report.

The prosecution also committed to submitting the judicial affidavits of its intended witnesses five days before the next hearing.

Duque and Lao are accused of facilitating the transfer of DOH funds to the PS-DBM for the procurement of COVID-19 test kits, face masks and other medical supplies despite allegations that the DOH could have procured the items directly.

Prosecutors allege that the two officials acted with evident bad faith or gross inexcusable negligence in connection with the transaction. They further claim that Duque approved the transfer despite allegedly knowing that it would not expedite procurement.

Both accused are out on bail.

The court scheduled the next hearings for Nov. 9 and 23, followed by Jan. 28, 2027.