Former presidential economic adviser Michael Yang is turning out to be the financier in the questionable P8.68-billion deal between the Department of Budget and Management’s procurement services (DBM-PS) and Pharmally Pharmaceutical Corp., Senate Minority Leader Franklin Drilon said on Sunday.
The Senate Blue Ribbon Committee, chaired by Sen. Richard Gordon, would now have to assess all the evidence to file a probable case against Yang, when it resumes its probe on Monday, September 13.
The committee, which is investigating the alleged overpriced COVID-19 supplies, has cited Yang in contempt and moved for his arrest.
“Titingnan natin kung mayroon nang sapat na ebidensya para magsampa ng kaso (We will check if there is now sufficient evidence to file a case against him),” Drilon said in an interview on Radio DZBB.
“Wala akong nakikitang dummy. Ang nakikita ko, siya ang funder (I don’t see a dummy. From what I see, he is the funder),” the minority leader pointed out.
Last Friday, Pharmally chairperson Huang Tzu Yen admitted that they borrowed money from Yang, a Chinese businessman, to finance the procurement of face masks and other COVID-19 equipment to be able to win a billion-peso worth of contract from the Philippine government.
Huang admitted they do not have sufficient funds to deliver pandemic supplies and Yang offered to lend them the money to be able to pay for it. According to him, they would have to pay the businessman back once they receive money from the government.
Yang earlier denied that he was involved in the transactions with Pharmally saying he only introduced its executives to suppliers.
What is clear, Drilon said, was that Ong and Huang had no financial capability to enter into a government contract and accepted Yang’s offer to help.
“Tama po iyan. Ito ay nakakagulat na ang bilis silang nabayaran. Ang maliwanag at lumabas sa investigation naming ay pinahiram ni Michael Yang ang Pharmally. Inaamin ni Linconn Ong at Huang na wala silang kakayahan kaya pinahiram sila ni Yang (That is right. What is surprising is that they were paid so fast. It’s clear and based on our probe, Michael Yang lent money to Pharmally. Ong and Huang admitted they don’t have the capacity so Yang lent them money),” Drilon pointed out.
Drilon further explained: “Iyon ay nagpapatunay na walang financial capacity ang Pharmally (It proves that Pharmally has no financial capacity). It goes into the financial capacity of Pharmally to discharge their obligations under their contract.”
The veteran lawmaker said the government must not say that what is important is they were able to deliver the goods, saying that ensuring that a company has sufficient capability and in good financial standing is part of the rules in government procurement precisely to protect the government and the people.
“Hindi pwedeng balewalain at sabihin nakapag-deliver din. Kasi kung ganyan ang sistema, yung nagtitinda ng sigarilyo diyan sa kanto ay pwede na ring maging supplier at makipag-transact ng milyun-milyon at bahala na kung ma-deliver o hindi (You can’t just ignore the rules and say at least we were able to deliver. Because if that is the system, then anybody, even those who are selling cigarettes in the streets can be a supplier and transact with the government without even considering if they can deliver or not),” he pointed out.
“Kaya nakalagay sa ating batas, maliwanag, na ang isang nakikipag-supply sa gobyerno ay may kakayahan na gampanan ang kaniyang tungkulin na mag-supply. Paano mo hahabulin kung hindi nakapag-supply kung ang pera ay P625,000 lang (That’s why our laws are clear, one cannot enter a supply agreement with government if they have no capacity to supply. How can you go after a supplier if they only have a money worth P625,000 only)?” Drilon stressed.
But for now, Drilon said he sees nothing wrong with Yang financing Pharmally, unless, he is part of a conspiracy in order to qualify the obscure company to bid even if it has no financial capacity.
“Siya mismo nagpahiram siya, ngunit iyan ba ay kasama sa pinag-usapan na ang Pharmally ang mag-bid at pagkatapos si Yang ang mag-finance? Hindi ko po alam (He lent the money himself, but is that part of the negotiation with Pharmally to bid and Yang will eventually finance? I do not know),” he said.
“Ang tanong ninyo ano ang pananagutan? Wala siyang pananagutan sa pagpapahiram unless kasama siya sa isang conspiracy in order to qualify Pharmally to bid kahit wala siyang financial capacity (Is he liable? He has no liability in lending money unless he is part of a conspiracy in order to help qualify Pharmally to bid even though they have no financial capacity)...Iyan po ang hinahanap natin. Sa ngayon, ang nakikita natin ay in-award ang kontrata (that is what we will be looking into. For now, we can only see that the contract was awarded to them),” he said.