House panel recommends estafa raps vs. Pharmally execs over COVID-19 supply deals

The House blue ribbon committee has recommended the filing of estafa charges against executives from the Pharmally Pharmaceutical Corp. in connection with the government's allegedly questionable purchase of medical supplies for the COVID-19 pandemic in 2020.

At a virtual press briefing on Monday, DIWA party-list Representative Michael Aglipay, who heads the panel, said the committee recommends the filing of syndicated estafa charges against Pharmally chairman Huang Tzu Yen, treasurer Mohit Dargani, president Twinkle Dargani, Pharmally director Lincoln Ong, and other officials of the firm Justine Garado and Krizle Grace Mago before the Department of Justice.

Asked why the panel is recommending syndicated estafa, Aglipay read a portion of the committee report and explained that the act of Pharmally officials in soliciting supply contracts from the government despite full knowledge that it was grossly unqualified to do so was a "fraudulent misrepresentation" that only resulted in damage to the government.

"These acts of Pharmally officials are grossly aggravated by the fact that these were committed during the height of pandemic. By taking advantage of the more lenient procurement regulations under Bayanihan Act One, this matter, Pharmally gravely abused the system to the insufferable prejudice of the government," Aglipay said.

The lawmaker stressed that the firm obtained and misappropriated funds from the general public worth P8.68 billion.

Aglipay also said the case of Pharmally is compliant with the element of syndicated estafa wherein at least five persons should be involved.

According to Aglipay, the panel found out that the requirements imposed by the Government Procurement Policy Board (GPPB) on suppliers under the emergency procurement of the Bayanihan Act One are "extremely deficient in genuinely evaluating the capacity of a supplier."

"One's financial capacity cannot be proven by ITRs or ATRs alone, and an additional requirement such as Audited Financial Statements or credit history may be necessary," Aglipay said.

"Likewise, documents that can attest to a supplier's capacity to provide the specifications of the goods required, like (a) list of previous projects, may be required."

In a message to reporters, Attorney Ferdinand Topacio, Ong's legal counsel, said they respect the findings of the House panel and that they "look forward to whatever action the appropriate government offices may take in relation to the recommendations of the committee."

"We are confident that, given a full and fair hearing with all constitutional safeguards freely at hand, the evidence we will present will result in the complete exoneration of my clients," Topacio said.

Ex-PS-DBM execs 

Aglipay said the panel also recommended the filing of appropriate charges for falsification of public documents against former executives of the Department of Budget and Management-Procurement Service (PS-DBM), Jorge Mendoza II and Mervin Ian Tanquintic.

Mendoza and Tanquintic had admitted that inspection reports were already signed even if COVID-19 supplies were still in China and were not yet checked by Philippine authorities.

Meanwhile, the panel did not recommend any charges against former presidential economic adviser Michael Yang and former executive director of the Procurement Service of the Department of Budget and Management Christopher Lloyd Lao due to lack of evidence.

"Lahat ng nangyari sa committee ay based sa evidence lang po (Everything that has happened in the committee is based on evidence) and we undertook all procedures and processes legally and fairly," Aglipay said at a virtual presser.

"So ang sagot ko po diyan sa tanong niyo kay Michael Yang and Christopher Lao, insufficiency of evidence. The evidence does not warrant or is not enough for cases to hold," he added.

'No overpricing'

Despite the recommendation to file charges, the committee maintained that there was no overpricing in the purchase of the COVID-19 supplies -- as claimed by President Rodrigo Duterte in the past.

Aglipay also said there was nothing irregular with the procedure done by the PS-DBM.

The Senate blue ribbon committee is also expected to release its preliminary report on its separate probe into the alleged anomalous purchases of COVID-19 supplies during the onset of the pandemic in 2020.

In October 2021, panel chairman Senator Richard Gordon said the committee already has preliminary findings in its probe.

These include possible charges against former PS-DBM officer-in-charge Lao, Pharmally Pharmaceutical Corporation officials, and Yang, among others. —KBK/AOL/RSJ, GMA News