Solon asks AMLC's action over Pharmally's alleged suspicious transactions

Gabriela party-list Representative Arlene Brosas on Thursday questioned  Anti-Money Laundering Council (AMLC's) action on the alleged suspicious financial dealings of the Pharmally Pharmaceutical Corporation, the firm that bagged government contracts worth billions of pesos for the purchase of COVID-19 supplies.

In the resumption of the House plenary deliberations on the House Bill 10153 or the 2022 General Appropriations Bill (GAB), Brosas asked AMLC if it looked into the financial dealings of the controversial company.

"Wala bang natanggap ang AMLC regarding Pharmally's financial dealings? Kasi kung maguusap po tayo dito, halimbawa the amount involved is not commensurate with the business or financial capacity of the client, lumalabas noong 2019, P635,000 lamang ang initial capacity ng Pharmally pero they bagged an P8.7 billion procurement contract sa PS-DBM," Brosas said.

"Lumaki nang napakalaki 'yung kanilang in and out sa bangko, na cash-in banks," she added.

Quirino Representative Junie Cua, sponsor of AMLC's proposed budget of P77 million, said Pharmally's transactions could not be deemed as a form of money laundering.

He said AMLC usually checks money sourced from lawless acts such as kidnapping, terrorism financing, jueteng, and illegal drugs, among others.

"Ang aking masasabi diyan, if 'yung financial capability niya maaaring di nga tugma sa volume of transaction, subalit kung alam mo naman talaga ito ay lehitimong negosyante, at alam mo na 'yung proceeds na idineposito diyan ay proceeds na nanggaling sa koleksyon sa malaking transaction na legitimate naman eh hindi naman money laundering 'yun. It's a legitimate transaction," Cua said.

Predicate crime

Brosas then raised that Pharmally has no bank profile at all. She pressed if AMLC acted on the alleged suspicious transactions of Pharmally.

"Wala bang ginawa ang AMLC kaugnay nito? Ang mandate po ng AMLC is to protect the integrity and confidentiality of bank accounts and to ensure that the Philippines shall not be used as a money laundering site for the proceeds of any unlawful activity," Brosas stressed.

Cua then explained that it has not been established yet if Pharmally had violated a "predicate crime" for it to be investigated.

"Kailangan mayroong na-violate na predicate crimes, halimbawa natin plunder, 'yun puwede nilang imbestigahan 'yun, nagkaroon ba ng malversation... mayroon bang tax evasion na nangyari... itong Pharmally hindi pa ma-establish kung may na-violate bang predicate crime so hangga't wala 'yun, hindi talaga puwede pakialaman. So 'yun, it requires a predicate crime," Cua said.

He, however, clarified that it does not mean that AMLC did not do anything to check the financial dealings of Pharmally. Cua said this is actually a "clandestine" operation that should not be disclosed to the public.

Brosas then asked: "Deretsuhin niyo na lang po ako, walang suspicious transaction report na inilabas ang AMLC kaugnay sa financial dealings ng Pharmally? Yes or no?"

Cua replied: "Maybe it's too early to say no."

"Maybe in an executive session, we can talk about that," he added.

The two chambers of Congress are looking into the purchase of at least P8.6 billion worth of face masks, face shields, and PPEs by the Procurement Service of the Department of Budget and Management with Pharmally despite its paid up capital of at least P600,000.

The Senate Blue Ribbon already requested the AMLC to inspect the bank records of Pharmally.—LDF, GMA News