Pharmally's initial delivery of 500K face masks without gov’t request, unusual —former DBM officer

A retired officer of the Department of Budget and Management on Monday admitted that the move of Pharmally Pharmaceutical Corporation to deliver 500,000 surgical masks to the government even without a request or purchase order (PO) was not a standard procedure.

“The first one, the first PO, the 500,000, I happened to see it kasi this is the very first instance that we have received the face mask during that time, nung pandemic. There was confusion kasi there was no supplier, no PO at that time,” Jorge Mendoza, former officer in charge of DBM-Procurement Service Inspection Division, told the Senate hearing.

Senator Francis Pangilinan asked if it was a standard procedure and Mendoza replied that it was not.

“Actually hindi po standard ‘yun,” Mendoza said. He also answered in the affirmative when Pangilinan asked if the March 25, 2020 delivery was unusual.

Mendoza was asked about the delivery after Pharmally executive Krizle Grace Mago said they received a request for quotation (RFQ) for the surgical masks on March 25 and they delivered it on that same day.

The purchase order (PO), however, was issued in April 2020.

Senator Franklin Drilon pointed out that it was unusual for the items to be delivered in the absence of a purchase order.

"Natanggap nila 'yung request for quotation o RFQ noong Marso 25, 2020. Ngayon ang sabi nila, agad dineliver nila on the same day. Dineliver nila ang 500,000 surgical masks, hindi ko maintindihan kung may inventory o hindi, papalit-palit 'yung sagot," Drilon said.

"Ang sabi naman ngayon, 'yung purchase order nila eh April 16, 2020. Ang ibig sabihin nagdeliver sila wala man lang purchase order which is unusual," he added.

Mago explained that during that day, they had no supplies of face masks; but they were still able to deliver the items using the supplier of Pharmally official Linconn Ong.

"At that day, we don't have the stocks at our warehouse but Mr. Linconn Ong has a supplier who can deliver at the same day po," Mago said.

She mentioned that the purchase order (PO) was dated April 6, 2020, which according to Drilon, was different from the date indicated by the Commission on Audit, which was April 16.

Senator Richard Gordon, panel chairman, also questioned why Pharmally immediately delivered the supplies sans the purchase order. He also raised questions on the changing amount of what was paid to Pharmally.

"Di ba nauna muna 'yung purchase order bago delivery pero ito request for quotation lang nagdeliver kayo kaagad?" Gordon said.

"Noong sabi mo noong umpisa, mayroon kayong stock tapos nagbago ang presyo, kung dati ang presyo lumalabas ay P27.72, P8 million, naging P13 million at ang total na binayad sa inyo ay P12 million plus..." Gordon said.

He also said this can be an indication that Pharmally was really a favored company.

Gordon warned that Mago can be cited for contempt for her confusing responses.

Ong, meanwhile, bared that the supplier of the face masks was TigerPhil Marketing. Ong refused to inform the Senate how much was paid to the said firm, saying that it was a "trade secret." He later said it was P23 per piece, including the cost for transportation.

He further said that he was able to negotiate with suppliers and he will pay them once the government pays his company.

"Nakakakuha ako ng inventory kahit ko muna babayaran ang supplier, babayaran ko sila pag nabayaran na ako ng gobyerno," Ong said.

Pharmally Pharmaceutical Corporation secured more than P8 billion worth of government contracts for the said procurement of personal protective equipment (PPEs), which were believed to be overpriced.

The Senate blue ribbon committee has requested the Anti-Money Laundering Council (AMLC) to inspect the bank records of Pharmally as lawmakers questioned how the firm bagged government contracts worth billions of pesos, with only a paid up capital of P650,000.—AOL, GMA News