Lloyd Christopher Lao was born in Davao City and earned his law degree from Ateneo de Davao University (ADDU). He is a member of the Lex Talionis Fraternity,the same fraternity that former President Rodrigo Duterte belongs to. Lao would join the faculty of ADDU. [2][3]
Prior to the Duterte administration,Lao was an Arbiter at the Housing and Land Use Regulatory Board (HLURB) - Southern Mindanao.[2]
Upon assumption of his Presidency,Rodrigo Duterte issued Executive Order No. 1,tasking the Special Assistant to the President (SAP),Christopher Lawrence "Bong" Go,to oversee the Office of the Special Assistant to the President (OSAP),which in turn would supervise the Presidential Management Staff (PMS) as well as the Office of the Appointments Secretary (OAS)[5] Go was appointed as Secretary,while Lao was appointed as Undersecretary.[3]
USec. Lao was then appointed as Vice-Chairman of the Presidential Search Committee of the OSAP. The role practically gave Lao the power to scrutinize any appointees to the bureaucracy as directed by Sec. Go.[6]
Housing and Land Use Regulatory Board
Duterte would appoint Lao as Chief Executive Officer and Commissioner of the Housing and Land Use Regulatory Board (HLURB) in 2018. As CEO,he was later figured in an extortion case filed at the Presidential Anti-Corruption Commission (PACC) by real estate developers.[7]
On December 18,2017,news broke out that Philippine NavyFlag Officer-in-Command (FOIC) VAdm. Ronald Joseph Mercado,who was supposed to serve until his retirement until March 2018,was abruptly relieved by the Armed Forces of the Philippines,Chief-of-Staff,Gen. Rey Leonardo Guerrero. The official confirmation of VAdm. Mercado's relief was issued by the AFP the following day. The AFP Spokesperson Col. Edgar Arevalo informed that the AFP was simply following instructions from higher authorities,and the reasons for VAdm. Mercado's relief will be given in due time. VAdm. Mercado would be replaced by RAdm. Robert Empedrad,as Acting FOIC.[9][10]
News within the day would detail that VAdm. Mercado's abrupt relief came after his clash with Department of National Defense (DND) officials over the PhP 15.7 billion Frigate Acquisition Project (FAP). The FAP was already signed and awarded during the Pres. Benigno Aquino's administration to Hyundai Heavy Industries (HHI) for the building of two frigates. However,delays in the construction was mainly in the final selection of the Combat Management System. (CMS)[11]
The CMS preferred by the Philippine Navy's Technical Working Group (TWG) for the FAP was the Tacticos of Nederlands Thales,as this already had a proven Link 16 operability,which was used by the Philippine Navy and its allies. HHI was pushing for the Hanwha Thales CMS,which was used by the Republic of Korea Navy. DND Secretary Delfin Lorenzana would later admit that VAdm. Mercado was relieved due to insubordination and his causing of the delay in the selection of the CMS,as he was pushing for Tacticos.[12]
The Philippine Daily Inquirer however was able to acquire documents where it would prove that Malacanang already had special interest in the FAP as early as January 2017. Sec. Lorenzana sent a note to the Philippine Navy to respond to Special Assistant to the President Sec. Bong Go's question on the CMS preference. Lorenzana's letter had an attached unsigned letter from Go,criticizing the selection of Tacticos by the Philippine Navy,and raised the positive features of Hanwha's Naval Shield Integrated Combat Management System (ICMS). Sec. Go's letter also included a white paper from Hanwha.[13]
Former PMS Undersecretary Lao would confirm the authenticity of Sec. Go's letter to Sec. Lorenzana,and it was normal procedure for their office to take action when they receive a complaint. The complainant in this case at the OSAS and PMS was HHI over the preference of the Philippine Navy for Tacticos. USec. Lao would also confirm that they have invited RAdm. Empedrad,who at that time was the chief of the TWG of the FAP,to Malacañang Palace to provide clarification on the matter.[14]
The fallout would put Go's influence and Lao's actions under scrutiny,causing the relief of a career naval officer,VAdm. Mercado. President Duterte would extend himself and defend Go from the issue. Go offered to resign,but Duterte refused this. VAdm. Mercado would later defend Go and say he never had any discussion with Go over Hanwha or the FAP.[12][15][16]
During the Congressional hearing of August 2021 on the Covid-19 Pandemic government procurements,Probinsyano Ako Cong. Jose Bonito Singson would question USec. Lao on his involvement in the FAP fiasco. Lao denied knowing anything about the issue twice. Cong. Singson presented a letter written by Lao to the RAdm. Empedrad on the CMS procurement. Lao would correct himself,confirm he wrote the letter,and admit that he was involved in the FAP mainly to address the complaint of the HHI.[17][18]
The Senate would also investigate Lao's involvement in the Philippine Navy Frigate Scandal,
On August 6,2024,former Senator Antonio Trillanes IV,a former Philippine Navy officer,filed a plunder case against former President Rodrigo Duterte,Sen. Bong Go,Defense USec. Raymundo Elefante,former Navy FOIC VAdm. Empedrad,and Lao.[19][20]
HLURB Extortion
The Presidential Anti-Corruption Commission (PACC) received an anonymous complaint,and this was passed on to Sec. Eduardo del Rosario of the Department of Human Settlements and Urban Development on September 2019. Del Rosario only passed the information to the staff of Lao for their proper response to the PACC. Lao mentioned that he was not aware of this.[7] Sen. Risa Hontiveros replied that it was impossible for Lao not to know about the complaint,since Sec. Del Rosario required him to respond to the accusation accordingly.[3]
DepEd Laptop Scam
The Department of Education planned in supplying entry-level laptops to more than 65,000 teachers across the country,and secured a budget of PhP 2.4 billion. The bidding was passed to the PS-DBM headed by USec. Lao. During the 2022 Senate Blue Ribbon Committee headed by Sen. Francis Tolentino,the investigation uncovered that the PS-DBM procured overpriced laptops at PhP 58,300 per unit. PS-DBM recommended the price,with DepEd approving it. The total overprice would amount to PhP 979 million. The Ombudsman would rule that graft charges would be filed against USec. Lao,DepEd Sec. Leonor Briones.[21]
Pharmally Scandal
Senate's Office of the Sergeant-at-Arms (OSAA) attempts to serve the warrant of arrest Saturday,November 13,2021 to former DBM USec Lloyd Christopher Lao at his Davao residence in Le Jardin Subdivision.
Lao would gain prominence during the Senate Blue Ribbon Committee hearing on the Pharmally Scandal in the middle of 2021 headed by Sen. Richard Gordon,during the Senate Presidency of Sen. Tito Sotto. Pharmally Pharmaceutical Corporation was established in September 2019 with a paid up capital of PhP 625,000.00. Lao would favor Pharmally with contracts that would amount to the PhP 11 billion - the single largest recipient of government contracts during the pandemic.[22][22]
By the end of August 2021,the Senate Blue Ribbon Committee would uncover that the scam would not have been possible had it not been supported by top ranking government officials in the Executive Branch. Sen. Franklin Drilon would expose the link between Lao and Pharmally. The PS-DBM would purchase from Pharmally overpriced items such as facemask and Covid-19 test kits.[23]
Sen. Bong Go meanwhile would deny that Lao was his aide,and that he was simply a volunteer lawyer of the Duterte campaign during the 2016 Presidential Elections,and later joined the Presidential Management Staff (PMS).[24] The PMS however was placed under the Office of the Special Assistant to the President (OSAP),by the issuance of Duterte's Executive Order No. 1,which was headed by Go.[5]
Pres. Duterte on the other hand would defend Lao,and confirmed that he was his fraternity brother,a member of his campaign team,and also helped his office when he was the mayor of Davao City. Duterte would add that he appointed Lao as a debt of gratitude,and defended that decision as executive prerogative that should never be questioned.[25]
Investigators from the Office of the Ombudsman would uncover that Lao approved the transfer of funds from the DOH for a 4% service fee amounting to at least P1.65 billion. The Ombudsman would find Lao and Department of Health Secretary Francisco Duque III guilty of injury to the government,and forfeited all their retirement benefits and perpetual disqualification from reentering government [22][26]
On September 14,2021,the Department of Justice issues an Immigration Look Out Bulletin Order (ILBO) on Lao and his co-accused over the Pharmally Scandal.[27]
SALN Increase
During the Senate Blue Ribbon Committee Hearing,Sen. Drilon presented the Statements of Assets,Liabilities,&Net Worth (SALN) of USec. Lao,and took note that he had PhP 11 million increase in his five years receiving a government salary of PhP 100,000 to PhP 175,000 per month. Lao explained that he was able to sell some memorial lots he had in stock,and that there were an increase of death during the Covid-19 Pandemic,as well as disposals of a golf club lots.[28]
Sen. Imee Marcos also took note that Lao's income tax return indicated he had zero income from 2017 to 2019,despite being under government payroll.[29]
Arrest &Aftermath
On September 12,2024,the Sandiganbayan First Division issued an arrest warrant against Lao for violations of the Republic Act No. 3019 Anti-Graft and Corrupt Practices Act,for his involvement with Sec. Duque in the transfer of the DOH budget of PhP 41.4 billion to his office,the Procurement Service - Department of Budget and Management.[26]
On September 17,2024,the Criminal Investigation and Detection Group (CIDG) was able to track Lao in Ecoland in Davao City,and served him the arrest warrant,and detain him briefly. The bail however was set at PhP 90,000.00.[30]
The Ombudsman would also file a graft case against Lao,former DepEd Sec. Briones over the PhP 2.4 overpriced laptops on July 11,2025. Lao and Briones pleaded "not guilty" to the charges.[21][31]
On August 14,2025,Lao would submit a plea of "not guilty" at the Sandiganbayan to the PhP 4.16 billion graft charge covering the Pharmally Scandal.[32]
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