SEN. Richard Gordon yesterday recommended that the Ombudsman and Department of Justice conduct investigations on the Pharmally Pharmaceutical Corporation controversy as he presented a preview of the partial report of the Senate Blue Ribbon committee on the issue during the panel’s 12th hearing.
A 13th hearing has been scheduled for October 28.
Gordon said based on initial findings, the committee which he chairs believes the key players in the Pharmally mess can be held criminally liable.
He said former budget undersecretary Lloyd Christopher Lao, Overall Deputy Ombudsman Warren Liong, former presidential economic adviser Michael Yang, and Pharmally officials can be investigated for violation of RA 3019 or the Anti-Graft and Corrupt Practices Act.
He said Yang can also be deported to China for being an undesirable alien if proven guilty.
“It is a police measure against undesirable aliens whose continued presence in the country is found to be injurious to the public good and the domestic tranquility of the people,” Gordon said.
Lao was head of the Procurement Service of the Department of Budget and Management (PS-DBM) when billions in supply contracts for pandemic supplies were awarded last year to Pharmally which had a paid-up capital of only P625,000.
Yang, a Chinese businessman, is suspected to be Pharmally’s financier.
Gordon said Pharmally treasurer and secretary Mohit Dargani and administrative officer Krizle Grace Mago can be probed for estafa, while Lao and Liong can also be investigated for fraud against the public treasury and similar offenses (Article 213 of the Revised Penal Code).
He said Yang, Pharmally director Linconn Ong, and Mago can be investigated for perjury/giving false testimonies, while Liong, and PS-DBM staff members Jorge Mendoza and Mervin Ian Tanquintic can be probed for falsification of public documents when they conspired in attesting that medical supplies have already been delivered when they were not.
He said Mohit Dargani, Ong, and Yang can be investigated for disobedience to summons; and Yang, Ong, Dargani and Mago for violation of the Bayanihan to Heal as Once Act.
Gordon said the Blue Ribbon hearings found out that the award of around P11 billion worth of contracts to Pharmally was grossly disadvantageous to the government.
He said President Duterte is also partly to blame for the irregularities.
“It is clear and categorical to us that this grand conspiracy could never have happened without the imprimatur of the President. The President allowed his friends to bleed this nation’s coffers dry,” he added.
He said Duterte could have violated Sections 81 and 96 of the Omnibus Election Code since the former Davao City mayor visited Xiamen, China together with Yang and the latter’s friends after Duterte became the substitute candidate for president in place of Martin Dino in 2015.
Sec. 81 says that it is unlawful for any foreigner, whether judicial or natural person, to aide any candidate or political party, directly or indirectly, or take part in or influence in any manner any election, or to contribute or make any expenditure in connection with any election campaign or partisan political activity.
Sec. 96 says it is also unlawful for any person, including political party or private or public entity to solicit or receive directly or indirectly any aid or contribution of whatever form from any foreign national, government or entity for the purpose of influencing the results of the election.
CONTEMPT
The Blue Ribbon, in the 12th hearing yesterday, cited in contempt Mohit Dargani and his sister Twinkle Dargani. Pharmally president, for failing of provide documents sought by the panel.
Senate minority leader Franklin Drilon was asking Pharmally officials to submit to the committee documents such as subsidiary ledgers, invoices, official receipts, list of sales, delivery receipts, and sales invoices, among others, which he said “could reveal a lot of things about expenses” which cannot be properly explained by Pharmally officials.
Mohit Dargani said they are not refusing to submit the documents but have been advised by their legal counsel not to do so.
“The company is not refusing to provide these documents. At the same time, these documents are legally accessed through different procedures under the law and we are just invoking our right. I am not refusing. It was the advice given to use by our legal counsel,” Mohit Dargani said.
Drilon said Mohit was refusing to comply with the Senate’s directive. He then moved to cite the Darganis in contempt, which was seconded by Sen. Francis Pangilinan.
The motion was approved by the committee as Gordon ordered the Senate sergeant-at-arms to “put them under the submission of the Senate.”
Ong has been under the Senate’s custody since September 21 after he, too, was cited in contempt due to evasiveness in answering questions.
MORE OVERPRICING?
Sen. Risa Hontiveros said Pharmally captured two contracts with the Department of Transportation-Philippine National Railways for the supply of infrared thermometers, goggles, and face shields at an overpriced rate.
Hontiveros, during the hearing, said Pharmally, in its contract dated April 16, 2020, presented a quotation to the DOTr with the following price rates: P3,200 each for infrared thermometers; P212.20 for goggles; and face shields at P179.20 each.
But Hontiveros said in another price catalogue prepared by Pharmally, which was distributed to private individuals, the infrared thermometers were priced at P1,999 to P2,200; goggles at P149 to P159; and face shields priced at P95 to P109.
Mohit Dargani confirmed Hontiveros’ information, but said the contract was perfected on April 2020 while the price catalogue was released a month later.
