Gordon: ‘Intrinsic overpricing’ in Pharmally mess

Senator Richard Gordon on Monday insisted that there is "intrinsic overpricing" in the purchase of the P8.68 billion worth of COVID-19 supply procurement by Department of Budget and Management- Procurement Service from   Pharmally Pharmaceutical Corporation.

Gordon was dismayed over purchase of highly expensive personal protective equipment, stressing that the technical and legal requirements for bidding must not be ignored during the pandemic.

"Ang malinaw diyan, intrinsic overpricing... Pagdating ng March 25 kung hindi ako nagkakamali, (Health Secretary) Sec.  (Francisco) Duque (III) requested 15 million PPEs. Ang cost niyan, ?2,000. Aba eh 'di naging signal 'yan ngayon," said Gordon during an episode of The Mangahas Interviews.

(The clear thing here is that there is intrinsic overpricing... By March 25, if I remember correctly, Duque requested 15 million PPEs. It costs P2,000, then that signals overpricing.)

"Akala nila porke tayo’y nasa pandemic, wala na 'yung legal, technical at financing requirements na dapat sisingilin mo du'n sa nagbi-bid... 'Basta below ?2,000 ha, happy days tayo rito.' Ang mga bid nila, ?1,998, ?1,902," the senator also said, adding that Philippine Red Cross, which he heads, only procured P1,000 PPE set.

(They thought that just because we are in a pandemic, rules in bidding will not be followed. They think anything below P2,000 is okay, so their bid was P1,998 and P1,902.)

Aside from PPE, Gordon said a Filipino firm was able to supply P13.50  face masks but Pharmally charged P28 or P27.70 per face mask.

Gordon also reiterated the questionable deliveries of COVID-19 supplies by Pharmally to the government  even as there is no request or purchase order. 

Prices of COVID-19 supply orders from Pharmally were also reportedly increasing, Gordon said.

"Tuwing mag-iimport sila, tuwing mag-oorder sila, nag-umpisa sa ?8 million, nagiging ?54 million. Two days later naging ?220 million, another two days later ?600 million… diyan pumapasok, ‘eto na ang mabigat: money laundering," the senator also explained.

(Everytime they import orders, it starts at P8 million then becomes P54 million. Two days later, at P220 million.. This is what we call money laundering.)

Despite having a paid-up capital of only P650,000, Pharmally was able to secure a multi-billion worth of government contracts.

In a previous Senate inquiry, Pharmally president Huang Tzu Yen admitted that the company borrowed money from former presidential economic adviser Michael Yang, the Chinese businessman who has since denied ties with the firm but said he had linked them to suppliers.

The Senate already directed the Anti-Money Laundering Council to inspect the bank records of Pharmally.

Senate Minority Leader Franklin Drilon also urged the Commission on Audit to probe PS-DBM and Pharmally deals. 

COA said it has yet to conclude that the equipment were overpriced, adding that it is still in the process of reviewing the said contracts of Pharmally and PS-DBM.—LDF, GMA News