Drilon: Pharmally execs key to unraveling multi-billion DBM-PS procurement deal

Senate Minority Leader Franklin Drilon wants Pharmally Pharmaceutical Corporation officials present in the next Senate hearing to “unravel mysteries” on its P8.68-billion COVID-19 supplies deal with the Department of Budget and Management-Procurement Service (DBM-PS).

“Ang importante ay mahanap natin ang opisyales ng Pharmally. Sa atin, ang Pharmally ang susi para malaman natin ang lahat. Pharmally is the key to unraveling the mysteries in this multi-billion transactions,” Drilon said in a radio interview Saturday.

(It is important to know the whereabouts of these Pharmally officials. This is the key to get the entire picture of the issue. Pharmally is the key to unraveling the mysteries in these multi-billion transactions.)

“Siya po ang pinakamalaking supplier ng PS-DBM kaya dapat tingnan natin kung sino ang mga connection nila,” he added.

(That firm is the biggest supplier of the PS-DBM. That’s why we need to look at their connections.)

It was Drilon who disclosed during the Senate Blue Ribbon Committee hearing on Friday that Pharmally bagged a P8.68-billion contract from the DBM-PS for the procurement of various pandemic supplies such as face masks.

The lawmaker questioned Pharmally’s capability to deliver the supplies when the firm, which started its operation in September 2019, only had P625,000 paid-up capital.

Drilon reiterated that former DBM-PS chief Christopher Lloyd Lao, whose previous appointments were questioned by the senators, may be liable for violating anti-graft laws.

“Inamin din ni Lao na hindi niya tinginan nang husto ang [General Information Sheet] at Articles of Incorporation. Sa aking tingin, pwedeng sampahan ng kaso sa ilalim ng Anti-Graft ant Corrupt Practices Act. Kasi overpriced ito,” Drilon, a former Justice secretary, said.

(Lao admitted that he did not scrutinize the GIS and Articles of Incorporation. In my view, he can be liable for violations of the Anti-Graft and Corrupt Practices Act because the items are overpriced.)

Should the overpricing reach more than P50 million, Drilon said that involved officials may be charged with plunder.

Drilon also said that the Senate Blue Ribbon Committee can ask the Bureau of Immigration if Pharmally officials have left the country. The National Bureau of Investigation can also be tapped to determine their whereabouts.

During the Senate hearing on Friday, Drilon said the Blue Ribbon Committee had issued subpoenas against Pharmally CEO Huang Tzu Yen, company secretary and treasurer Mohit Dargani, and a certain Twinkle Dargani who is also an official of the said firm.

But the subpoenas were not served as the address stated that Huang Tzu Yen and Mohit Dargani are non-existent while Twinkle Dargani had left her residence.

Drilon said the Pharmally officials have declared “fake addresses” in their General Information Sheet.

Possible links

Meanwhile, Senator Panfilo Lacson also asked the Senate Blue Ribbon Committee to dig up more information on the Pharmally officials and their possible links with Michael Yang, former presidential adviser for economic affairs.

"We want to focus on this particular issue. Sino ang involved sa napakalaking halaga na na-award sa virtually unknown company na ang director di mahagilap kasi fictitious ang address? Yun pa lang that’s already a crime," Lacson said in a separate radio interview.

(Who are involved in the awarding of a contract involving huge sums to a virtually unknown company whose director cannot be located after giving authorities a fictitious address)

"May target silang malaking pera para sa supplies," he added.

(Those behind the plot were aiming to hit the jackpot in procuring supplies.)

During Friday’s hearing, Senator Richard Gordon played RTVM footage showing Presidential Adviser Michael Yang having a meeting with President Rodrigo Duterte. The video also showed that Duterte was with Senator Bong Go.

According to Lacson, some officials of Pharmally were also seen in the video.

The lawmaker urged the Senate panel to further investigate the transactions entered into by the DBM-PS, saying the lawmakers wanted to look at this “large-scale corruption.”

"Maliwanag naman may tinutumbok tayo rito na large-scale corruption. What makes it worse, sa gitna ng pandemya, may kumikita," Lacson said.

(It is clear that we are looking at large-scale corruption here. What makes it worse is that this is happening with some unscrupulous parties making gains for themselves right in the middle of a pandemic)

"At ang perang ito galing sa utang. Di ba magagalit ka? Hindi natin dapat ito tatantanan,” Lacson stressed.

(Making matters even worse is that the money involved came from loans. Shouldn't we taxpayers get angry over this? We should continue to pursue this to its logical conclusion)

Both Drilon and Lacson on Friday pointed out that Lao did not exercise due diligence in entering a deal with Pharmally Pharmaceutical Corporation.

Lao admitted that there might be possible negligence on his part in the procurement of overpriced face masks and face shields during the onset of the COVID-19 pandemic in 2020.

Following Lao’s statement, Drilon moved for the Senate to Blue Ribbon Committee to ask the Office of the Ombudsman for a proper investigation on the transactions DBM-PS entered into with Pharmally Pharmaceutical Corporation for possible violations of anti-graft laws.

Drilon said Lao’s admission before the Senate panel gives them prima facie evidence. — DVM, GMA News