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Graft court orders arraignment of state pharma firm exec

By Benjamin Pulta

February 28, 2023, 4:36 pm

MANILA – The Sandiganbayan has ordered the arraignment of an official of the PITC Pharma Inc. (now the Philippine Pharma Procurement Inc. or PPPI) implicated in an anomalous government supply contract for medicines in 2007.

The graft court's Third Division turned down the motions of Jesus Biscocho Cantos, then the PITC vice president for logistics and supply chain, for lack of merit and set his arraignment on March 10.

"Cantos' motion is highly improper considering that this Court has already found probable cause in this case when it issued the warrant of arrest against him on Nov. 17, 2022. In fact, accused Cantos has already posted bail for his provisional liberty on Dec. 19, 2022," the tribunal said in its Feb. 27 decision made public Tuesday.

Cantos, chief operating officer Teddie Rivera, vice president for finance Jacqueline Mendoza, and managers Elvira Aspa and Krisanto Nicolas were charged for allegedly violating Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.

Prosecutors claimed Cantos gave unwarranted benefits and advantage to Biolink Pharma, Medgen Laboratories and Alphamed Pharma Corp., which provided branded medicines through direct contracting in violation of the procurement law.

The medicines acquired were more expensive by about PHP19.69 million compared to the generic counterparts, causing undue damage to the government, according to prosecutors.

Cantos asked that the charges be dismissed as a similar administrative complaint was previously dismissed by the Office of the Ombudsman.

Ruling otherwise, the tribunal said "absolution from a criminal charge is not a bar to an administrative prosecution or vice versa. One thing is administrative liability; quite another is the criminal liability for the same act."

PPPI is a subsidiary of the Philippine International Trading Corporation and an affiliate of the National Development Company.

It is the only pharmaceutical firm classified as government-owned and controlled corporation and is tasked to provide low-priced quality medicines.

It assists in the implementation of cost-containment measures, like supporting hospital pharmacies and making available low cost, rational and complete drug treatment packs; and supports the Department of Health in the determination of the maximum retail price. (PNA)

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