Some senators slammed the Procurement Service office of the Department of Budget Management (PS-DBM) after learning that some local suppliers were forced to sell their products at a loss due to piles of inventory from Pharmally.
Local manufacturer EMS Components Assembly Inc. lost at least P500,000 after it was forced to sell the 75 million face masks ordered by the government for P2 per piece even though their original contract was P13 per piece.
The Commission on Audit explained that PS-DBM stopped receiving additional stock from EMS because the agency found it difficult to consume the previous stock of face masks from Pharmally Pharmaceutical Corporation.
They are more expensive, so no government agency wants to buy from the PS-DBM supply.
“Hindi po na-dispose a lot of these equipment right away so noong dumating ‘yung September, prices went down, ayaw na kumuha sa PS-DBM kasi mahal,” said COA Chair Michael Aguinaldo.
According to data from the government, PS-DBM ordered nearly 13 million face masks from Pharmally at P22 and P27 per piece in April 2020 even though the local manufacturer EMS only sells them at half price.
Some senators said that it was not only in April 2020 that PS-DBM transacted with Pharmally because, until this year, but the government is also set to pay P2.3 billion to the company that allegedly uses fake addresses in registration documents.
Local PPE suppliers allegedly went bankrupt due to Pharmally
“Nakakabahala na malaman natin na ‘yung local supplier natin would supply for P13.50 and yet binigay ‘yung kontrata sa foreigner na ang prices, double the prices,” said Sen. Ralph Recto.
Some senators also insisted that more Filipinos would have been given jobs if PS-DBM had bought from local PPE producers.
The Senate is also set to issue a warrant of arrest against former Presidential economic adviser Michael Yang who is said to be related to Pharmally.
Senate Minority Leader Franklin Drilon is also investigating possible tax fraud by Pharmally Pharmaceuticals Corp.
Drilon said there are many notable ones in its financial statement where it does not seem to be paying the right taxes.
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