‘Another favored supplier’ secures nearly P7B in contracts with gov’t- senators
MANILA, Philippines — Senators on Thursday flagged “another favored supplier” of pandemic response goods as the Senate blue ribbon committee investigates the multi-billion government deals awarded to Pharmally Pharmaceutical Corp.
During the Senate blue ribbon committee hearing, Senator Francis Pangilinan said records from the Procurement Service of the Department of Budget and Management (PS-DBM) showed it awarded around P6.98 billion worth of contracts to an “undercapitalized” company called Element Trade Limited.
“The data submitted to us by DBM-PS will show that Element that delivered about P7 billion worth of purchases (for) DBM-PS had a capitalization of $10,000,” Pangilinan said.
“Again, the first one had a capitalization of 625,000: Pharmally. Now you have a second company with P7 billion worth of contracts with $10,000 capitalization so clearly, the record will show that undercapitalized suppliers, corporations were able to bag billions of pesos worth of contracts,” he added.
Pangilinan noted that Element was incorporated only in April 2020.
“There is another preferred supplier, is that correct?” Senator Richard Gordon, chairman of the blue ribbon committee, said, adding he took note of this too.
“I have that [record]. So my point is, Mr. Lao (former PS-DBM head Christopher Lao)m hindi ka ba nalulula na nagbibigay ka ng kontrata all by your lonesome na umaabit ng milyun-milyon? [are you not overwhelmed by the contracts worth millions you are awarding?]” Gordon asked.
The Senate panel has been looking into the government’s transactions with Pharmally, which was awarded over P8.6 billion worth of supply contracts for medical supplies in 2020.
Senators doubted Pharmally’s financial capacity to fulfill the multi-billion contracts since it was just several months old at that time and only had P625,000 in paid-up capital.
READ: P8.7-B med supply deals went to tiny company
They also believe that the PS-DBM favored Pharmally in awarding pandemic supply contracts, which was denied by both the agency’s former head and the firm.
READ: ‘Nalugi kami:’ Senators lament local mask maker was ‘cheated’ amid contracts for ’favored’ firm
Pharmally chairman and president Huang Tzu Yen has previously denied that they were favored in the government’s procurement of medical supplies in 2020, claiming the firm has been “unfairly prejudged.”
READ: Pharmally exec: All our business dealings are aboveboard
Gordon said the committee would continue with its investigation, with an 11th hearing scheduled next Tuesday, October 5.
