Senators question P33M worth of donations made by Pharmally to gov't in 2020

Several senators on Friday questioned the P33 million worth of donations made by Pharmally Pharmaceutical Corporation, the small firm that bagged over P8 billion worth of contracts for the procurement of medical supplies, to various government institutions in 2020.

During the continuation of the Senate blue ribbon committee hearing on the alleged irregularity, Senate Minority Leader Franklin Drilon noticed the P33 million worth of donations in the firm's audited financial statements as presented by resource person, Raymond Abrea, a certified public accountant.

“Doon sa financial statements mayroon din pong nakalagay na P33 million na donation doon po sa pagtingin ng financial statements. Sinabi ba kung saan napunta ito o kung saan nanggaling?” Drilon asked.

(In the financial statements, it is indicated that there is a P33 million donation. Was the beneficiary or the source of the donation stated there?)

Abrea told the panel that Pharmally did not disclose the details of the donations in their financial statement.

Drilon then asked Pharmally director Linconn Ong to provide details of the beneficiaries of the donations.

However, Ong repeatedly informed the panel that he cannot recall any discussion on the donations and that he is not currently in possession of the firm’s accounting records.

“Sino po nakakalam nito? Ito ay malaking halaga P33 million sinabi doon sa financial statements ninyo, dinonate niyo ito. Kanino niyo dinonate? Di po ba pinag-uusapan sa board ito bago ito i-donate or pinaguusapan man lang ng mga officers kung saan ido-donate ito,” Drilon pointed out.

(Who is knowledgeable about this? This is a huge amount of money, P33 million as stated in your financial statements. To whom did you donate this? Had the board discuss this before they donated it?)

Drilon likewise asked for the documents that will prove the payment of donor’s tax.

Still, Ong maintained that he has no records of the donations and that he cannot recall the discussion for the donations in one of their board meetings.

Senator Richard Gordon, chairman of the blue ribbon committee that is conducting the probe, pointed out that the director and the policymakers of the firm must be aware of the donations made by the company.

This was affirmed by Abrea as he noted that 79% of Pharmally’s operating expenses are declared as donations.

“Malaki din, 79% of operating expenses nila ang donation,” Abrea told the legislators.

(The donations are huge, it is 79% of their operating expenses.)

At this point, Senator Francis Pangilinan asked if it is “unusual” for a corporation to declare 79% of its operating expenses as donations.

“Usually po, nasa salaries po at rent expenses ang malaking portion ng operating expenses,” Abrea responded.

(Usually, the salaries and rent expenses make the largest portion of the operating expenses.)

It is “unlikely” for commercial corporations to declare most of its operating expenses as donations unless if it is a foundation, Abrea explained as he answered Pangilinan’s query.

At the latter part of the discussion, Drilon asked Pharmally’s outsourced accountant, Iluminada Sebial, of the details of the donations.

According to Sebial, the P33 million was donated by the firm in the form of goods.

Among the recipients of the donations are the Research Institute for Tropical Medicine, Taguig City Hall, San Juan City Hall, Quezon City Hall, Quezon City Council, Provincial Government of Cavite, Navotas City Hall and the VRP Medical Center.

Drilon then asked if there are other donees.

Sebial answered in affirmative but said she cannot disclose further information as the deed of donation and other documents were not yet submitted by Pharmally.

“Naniwala ba kayo na P33 million hindi po nakita ang lahat ng papeles, mga deed of donation?” Drilon asked.

(Do you believe the P33 million donations without looking at all papers required such as the deed of donation?)

Sebial said only a list was given to her by the secretary of Pharmally corporate treasurer and secretary Mohit Dargani.

“Listahan lang po ang ibinigay…Yung mismong actual deed of donation, nasa kanila po ang kopya,” she said.

(They just gave me the list…The actual deed of donation is with them.)

According to Abrea, all documents should be presented by the firm before it can be declared in the audited financial statement.

During the course of the hearing, Drilon moved to subpoena all the accounting documents from Pharmally and from Sebial.

The Senate panel decided to suspend the hearing as they await for documents to be submitted. —KBK, GMA News