Pharmally head now admits company borrowed money from Michael Yang

Pharmally Pharmaceutical Corporation did not meet the basic financial capacity requirement when it was awarded billions worth of government contracts to provide COVID-19 supplies, Senate Minority Leader Franklin Drilon said Friday.advertisementhttps://677376401a699822d1b67015ac3c6444.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html

During a Senate hearing, Pharmally president Huang Tzu Yen admitted that they borrowed money from former presidential adviser Michael Yang.

“After you got the contract, you approached Michael Yang. So when you were negotiating to get the contract, you had absolutely no funds to get the supplies… at that time you were awarded, you had no funds to carry out your obligations,” Drilon said.

Huang replied, “I just want to state on the record that we did receive Michael Yang’s help, with borrowed money from him.”

“The company, not personally,” Huang added.

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Drilon also chided former Undersecretary Christopher Lloyd Lao for insisting that the purchase contracts approved by the Procurement Service of the Department of Budget and Management, which he formerly headed, were aboveboard.

“Because this Lao is so arrogant and is saying that he complied with all the requirements. So here you are, the basic financial capacity requirement was not available… the one who was given the contract admitted that they had no funds and they went to Michael Yang,” Drilon pointed out.

The Senate Blue Ribbon is currently looking into the purchase of at least P8.6 billion worth of face masks, face shields, and PPEs by the DBM-PS with Pharmally Pharmaceutical Corporation.

Yang earlier denied any relations with Pharmally, but admitted that he had linked them to suppliers.

Pharmally official Linconn Ong, meanwhile, said Yang had “guaranteed” for them when they were sourcing PPE supplies from China after Yang denied links with the corporation.

Irked by “evasive” answers, senators earlier cited in contempt and moved for the arrest of Yang and Ong.

https://www.gmanetwork.com/news/news/nation/802884/michael-yang-pharmally-exec-ordered-arrested-for-lying-in-senate-probe/story/

Pharmally’s P650K capital

Prior to the admission, senators repeatedly questioned how Pharmally, a small firm that had a paid-up capital of around P625,000, was able to secure the government contracts.

“You’re so lucky you got 8.8 billion contracts, not including 2021,” Senate blue ribbon committee chairman Richard Gordon said.

In answer, Huang said they worked hard for the contracts.

“Of course, you worked hard, you got it with a P650,000 capital. I don’t think you can get to first base in China with that kind of capital or in America or in Taiwan,” he said.

Drilon previously said that Pharmally’s income soared from zero to P284.9 million in 2020 while assets jumped from P599,000 in 2019 to P284.9 million in 2020.

The senator also pointed out that Pharmally’s products were overpriced.

Records show that Pharmally sold face masks at a P27.72, while the same item was sold by other suppliers to PS-DBM at P13.5, P16, and P17.50 during the same period in 2020.

It likewise sold test kits at a price of P1,720 when the kits can be bought at P925.

The firm also sold the PPEs P1,910 each when the cost of the material in the market cost is at P945.—LDF, GMA NewsTags: Pharmally Pharmaceutical CorporationMichael Yang Hong Mingchristopher laoSenate Blue Ribbon CommitteeHuang Tzu Yen

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