No need to conduct background check on Pharmally execs, says Palace

Malacañang on Thursday said the government did not run background checks on the officials of Pharmally Pharmaceuticals Corp. because it is not required by law.

Pharmally is the company being linked to the allegedy overpriced procurement of personal protective equipment by the Department of Budget and Management last year.

"Under the law, a corporation is a separate personality from stockholders," said presidential spokesperson Harry Roque at a press briefing.

"Hindi kailangan i-scrutinize kasi separate personality 'yun [Individuals need not be scrutinized since they are of separate personality]. The bid was made by the corporation," he added.

Senator Risa Hontiveros on Wednesday questioned the government's decision to transact with Pharmally even if its executives, including its chairman Huang Wen Lie, also known as Tony Huang, is wanted in Taiwan for securities fraud, stock manipulation, and embezzlement based on Taiwan's Ministry of Justice's website.

The same website also states that Huang's son, Huang Tzu Yen, incorporator of Pharmally Pharmaceutical Corp. and Pharmally Biological Inc., is wanted for stock manipulation.

Roque, a lawyer, invoked the Bayanihan to Heal as One Act, which allows expedited procurement for emergency situations, including a pandemic.

"Hindi na po mabubusisi iyong background ng mga stockholders or identity of bidders [We won't have to scrutinize the background of individuals], unless they made their bid in their personal capacity or they are blacklisted for failure to deliver goods or failure to pay taxes," he said.

"These get scrutinized under normal circumstances under the Procurement Law, but we also have the Bayanihan 1," Roque added.

Roque then said Pharmally's small capital of P625,000 is not an issue because it was able to supply the PPEs and other items that the government needed that time.

"Even if they have a small capital, they were able to deliver, and they agreed that they will not be paid until they are able to deliver. So the small capital is immaterial," Roque said.

The Senate blue ribbon committee is investigating the government's multi-billion peso PPE deal with Pharmally  despite the company only having a paid-up capital of P625,000. —KBK, GMA News