DOTr maintains regularity in PNR’s ‘small value’ purchase of Pharmally items

FILE PHOTO: The inaugural run of the new Philippine National Railway train at Dela Rosa station in Makati City on January 28, 2021. RICHARD A. REYES / INQUIRER

MANILA, Philippines — The Department of Transportation (DOTr) on Wednesday maintained regularity in the Philippine National Railways’ (PNR) procurement of pandemic-related items from Pharmally Pharmaceutical Corp., the controversial firm now under the scrutiny of the Senate.

“[A]llow us to state, for the record, that the [DOTr] itself did not procure or enter into any contract with Pharmally Pharmaceutical,” it said in a statement.

“The subject of the said issue, which involves the amount of PhP619,000 for the procurement of infrared thermometers, goggles, and face shields at the height of the pandemic last year, is the Philippine National Railways (PNR). The PNR is an attached agency of the DOTr, which has its own board and charter,” the DOTr added.

The DOTr also explained that all government agencies define as “small value” all puchases amounting to under P1 million.

During a blue ribbon committee hearing Tuesday, senators learned that infrared thermometers were sold to PNR at P3,200 per piece, But Pharmally’s catalog at the time showed that an infrared thermometer costs P2,000.

It was the same case for the goggles, which Pharmally sold to the government for P212.50 each when its catalog’s price tag for it was P159, as well as the face shield, which costs P109 in the Pharmally catalog but sold to the government at P179.20 apiece.

READ: Pharmally overpriced sales to gov’t – Drilon

The DOTr said the PNR “can very well present proof of regularity of its Emergency Procurement of critical items for the use of its personnel, which involved an amount that is less than a million.”

“PNR is most ready to present or submit the necessary documentary proofs of its small value procurement, such as relevant market studies or canvasses at that time, as needed,” it added.

The DOTr further assured that they, including all its attached agencies, “adhere to its position of fully subscribing to the tenets of honesty, integrity, and transparency in all of its procurement, contractual obligations, and transactions.”

“Under the unrelenting leadership of Secretary Art Tugade, we have sworn to uphold and have taken these core values to heart, all in our continuing effort to maintain the trust and confidence bestowed to us by the public,” the DOTr said.

“We remain confident that the TRUTH regarding this issue will come out eventually, as we continue to focus on issues that really matter—such as our relentless pursuit of completing the game-changing, transformative Build, Build, Build mass transport infrastructure projects to benefit the commuters, our economy, and the entire country,” it added.