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No overpricing in purchase of Covid-19 supplies: House leader

The House Committee on Good Government and Public Accountability has maintained that there was no overpricing in the purchase of coronavirus disease (Covid-19) supplies.

In a press briefing on Monday, committee chair Michael Aglipay said the panel’s report also found that there was nothing irregular with the procedure done by the Department of Budget and Management-Procurement Service (PS-DBM).

“The Committee found that there was no overpricing in the purchase of materials, supplies, and equipment by the PS-DBM,” Aglipay said. “The procedure on emergency procurement pursuant to Bayanihan Act One undertaken by the PS-DBM… was consistent with applicable rules and regulations. There was nothing irregular nor illegal in the procedure applied PS-DBM.”

He, however, said one of the recommendations in the committee report was to abolish the PS-DBM since it has already “outlived its purpose”.

“PS-DBM has outlived its purpose considering that all agencies now have their own procurement department and BAC (Bids and Awards Committee),” he said.

The panel has also recommended the filing of syndicated estafa charges against several officials of Pharmally Pharmaceutical Corp. in connection with the government’s purchase of Covid-19 supplies.

These criminal charges against Pharmally chairman Huang Tzu Yen, treasurer Mohit Dargani, president Twinkle Dargani, Pharmally director Lincoln Ong, and Pharmally executives Justine Garado and Krizle Grace Mago shall be filed before the Department of Justice.

“These acts of Pharmally officials are grossly aggravated by the fact that these were committed during the height of pandemic. By taking advantage of the more lenient procurement regulations under Bayanihan Act One, this matter, Pharmally gravely abused the system to the insufferable prejudice of the government,” Aglipay said.

The panel, meanwhile, did not recommend any charges against former presidential economic adviser Michael Yang and former PS-DBM executive director Christopher Lloyd Lao due to lack of evidence.

“The evidence does not warrant or is not enough for cases to hold,” he said.

The PS-DBM awarded Pharmally Pharmaceuticals Corporation contracts worth PHP8.68 billion for the purchase of personal protective equipment (PPE) and testing kits, which were believed to be overpriced, at the onset of the Covid-19 pandemic in 2020.

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

Source: Philippines News Agency