Palace denies Michael Yang influenced Pharmally deal

By Azer Parrocha

September 1, 2021, 5:11 pm

<p>Personal protective equipment <em>(File photo)</em></p>
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Personal protective equipment (File photo)

 

 

 

MANILA – Malacañang on Wednesday denied that the influence of former economic adviser and businessman Michael Yang led to the government's decision to buy over PHP8 billion worth of Covid-19 medical supplies from Pharmally Pharmaceutical Corporation.

Yang’s name was brought up in a Senate hearing last week after video footage was played showing the Chinese Davao-based businessman and President Rodrigo Duterte meeting with officials of Pharmally in 2017.

“Wala pong kinalaman ang mga personalidad. Ang tinignan, presyo at kuwalidad (Personalities had nothing to do with this. What they looked at were the price and quality),” Presidential Spokesperson Harry Roque said in a Palace press briefing.

Roque said the government, through the Department of Budget and Management (DBM), requested quotes of items from suppliers before actually awarding the government contract to Pharmally.

“Humihingi ‘yan ng quotes from multiple sources. And the basis of quotes submitted, doon sila magdedesisyon kung kanino ibibigay. So hindi ibig sabihin na palibhasa wala nang bidding, hindi sila humingi ng multiple quotes (They ask for quotes from multiple sources. And they decide on who to award the contract on the basis of the quotes submitted. Just because there’s no bidding, it doesn’t mean they don’t ask for multiple quotes),” he added.

Amid concerns over the purchase of alleged “overpriced” personal protective equipment (PPE), Roque said the PPEs worth PHP1,700 purchased by the government were cheaper than the PPEs worth PHP3,500 bought during the previous administration.

“Ultimately, it’s the price and the specification that matters. Sa presyo po ang labanan kahit sino ka man. Eh, unfortunately, wala pong ibang kumpanya na makakapagbigay ng 1,700 (It’s the price that matters whoever you may be. Unfortunately, no company was able to give them for the price of PHP1,700),” he said.

In a public address aired last Tuesday, Duterte defended Yang by pointing out that he has been in business for some 20 years.

He cited Yang’s ties with former Chinese Ambassador Zhao Jianhua, saying he even accompanied the ex-envoy in meetings.

Duterte also said the process of emergency procurement is consistent with existing laws such as Republic Act (RA) 9184 or the Government Procurement Reform Act, Government Procurement Policy Board issuances (GPPB), and other further of RA 11469 of Bayanihan to Heal As One Act.

Under the Bayanihan Act, the government may undertake the procurement of PPEs and other medical supplies “in the most expeditious manner” as exemptions from RA 9184 and other relevant laws.

The law also allows “emergency” negotiated procurement “in case of imminent danger to life or property during a state of calamity, or when time is of the essence arising from natural or man-made calamities or other cases where immediate action is necessary.”

Last week, senators expressed concern why a bulk of government contracts for the purchase of Covid-19 medical supplies went to Pharmally, which existed only six months before the pandemic.

Pharmally was registered in September 2019 with the Securities and Exchange of Commission with a paid capital of PHP625,000. (PNA)

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