‘Construction Firm Bags P1.9-Billion Contract For COVID Supplies’; Senate Body Vows To Complete Probe On Various Deals

A construction company based in China was able to bag a P1.9-billion contract with the Procurement Service of the Department of Budget and Management (PS-DBM) for COVID-19 supplies last year even if it is not registered in the country, Senate Minority Leader Franklin Drilon said.

Citing official documents, Drilon identified the company as Xuzhou Construction Co. that obtained the contract to supply face shields, making it the second biggest supplier of pandemic items tapped by the PS-DBM after Pharmally Pharmaceutical Corp., which is being linked to key administration officials all the way to President Duterte.

“It is not even a registered corporation (in the Philippines). It is based on China. It is a construction company. How in heaven's name, can we justify this?” Drilon told “The Chiefs” on One News on Friday night, Sept. 3.

“Suppose, something goes wrong. How do you sue them? When in fact, they must have a license to do business here. They must have a recipient where summons can be served. These are requirements of law,” Drilon said.

He added the law requires that a company be registered in the country to be able to do business with government.

The Senate Blue Ribbon committee is investigating the undocumented transfer of some P42 billion from the Department of Health (DOH) to the PS-DBM last year that was previously flagged by the Commission on Audit.

Based on the committee inquiry, bulk of the funds apparently went to supply contracts with Chinese firms allegedly with ties to the administration as in the case of Pharmally, which reportedly obtained at least P10 billion supply contracts for apparently overpriced face masks, face shields and other items.

Drilon urged Pharmally officials to face the Senate supply deals it got from the PS-DBM when it was still headed by then undersecretary Lloyd Christopher Lao.

“I’m wondering why up to now the officials of Pharmally have not appeared before the Senate. We subpoenaed them but we could not find them in the addresses indicated in their submissions to the Securities and Exchange Commission,” he said.

“They know that the hearings are going on. Why have they not volunteered and come up and said, ‘I’m here and I’m willing to explain all of this.’ Why? That’s why questions are being raised, because of this incident that’s not consistent with our ordinary human experience,” he added.

Drilon stressed that if everything was aboveboard, Pharmally officials should have already volunteered to appear in the Blue Ribbon hearing to clear their names.

He contrasted Pharmally’s apparent silence to what Rebmann Incorporated did, the company that supplied personal protective equipment sets (PPEs) during the Aquino administration.

Presidential spokesperson Harry Roque earlier questioned the purchases of the Aquino administration of PPEs from Rebmann, the firm’s officials immediately surfaced and defended the purchases as being aboveboard.

“Again, the willingness of Rebmann to explain is an indication that the contract is above board as against the situation with Pharmally where up to now I have not seen a single soul,” Drilon said.

Former deputy presidential spokesperson Abigail Valte, in a Facebook post on Friday, released the list of the PPE sets procured on June 23, 2016, which included head caps, goggles, gloves, plastic shoe covers and coveralls.

On Friday, Rebmann also defended the quality of its PPE sets and said the procurement underwent proper bidding. COA chairman Michael Aguinaldo likewise said the past administration was not flagged for buying PPEs.

The committee, chaired by Sen. Richard Gordon, tried to subpoena Huan Tzu Yen, the chief executive officer of Pharmally; Twinkle Dargani, president; and Mohit Dargani, treasurer, but the stated addresses in the corporation’s General Information Sheet appeared to be fictitious, Drilon said.

Investigation to continue

Regardless of criticisms from Duterte, the Senate Blue Ribbon committee is committed to finish its investigation into alleged anomalous procurements of billions of pesos worth of COVID-19 supplies and filing charges against those responsible.

“We will finish it (inquiry). That’s the commitment of our committee chairman (Gordon),” Drilon said in the same interview.

Drilon gave this assurance as the President’s tirades against the probe into the corruption scandal rocking his administration reached the point at which he warned that he would not allow his Cabinet members to attend the Senate hearings because they would “lead to nothing.”

“It is made more difficult because of the demands on our time, as a result of the (proposed 2022 national) budget and the forthcoming elections,” Drilon said, but remained steadfast, adding: “With our best efforts, I’m confident we can finish it.”

The committee, which is investigating the questionable transfer and the subsequent disbursement of some P42 billion from the Department of Health (DOH) to the Procurement Service of the Department of Budget and Management (PS-DBM) last year, is scheduled to hold its next hearing on Tuesday, Sept. 7.

Last week, Drilon said what happened, particularly the awarding of billions of pesos worth of contracts to apparently favored suppliers identified with administration officials, could be a case of “premeditated plunder.”

Sen. Bong Go, who could be facing an ethics investigation by his peers in connection with the apparently irregular procurement, said the inquiry was not only “premature” and “in aid of the election” of some of his colleagues in 2022, but also hampering the delivery of urgent services.

He said many government officials, particularly those in the frontline agencies, are now “afraid” of signing contracts for fear of being investigated and pilloried in public for simply per-forming their duties in acting swiftly to address the pandemic, like what is happening now due to the Senate investigation.

“I believe it’s about timing. Like what I said about the COA (Commission on Audit), that comes out (with a report) and you want them (officials) to answer while we’re in the middle of the implementation (of pandemic response). So how can the DOH move? Who will be affected? The ordinary citizen, the poor Filipino,” Go told dwIZ radio in Filipino.

“It can be helped that now that the elections are approaching…maybe let’s just wait for Oct. 8, some members of the Senate will run, then we’ll see the timing,” he said.

He noted the COA report was not yet final and the DOH still has 60 days to “rectify” the negative observations.

Go said he will still attend the hearings even if he believes enemies of the President are just trying to distract him from addressing the pandemic by raising allegations against him and his appointees.

Duterte-Sotto dialogue

Meanwhile, Go offered to act as mediator between the Senate and the President to resolve their rift, saying all branches of government must not waste their time and should work together in confronting the pandemic.

Earlier, Senate President Vicente Sotto III said he was seeking a meeting with Duterte to resolve any differences between the Executive and Legislative branches, given the numerous problems the country is facing. Go said Duterte is open to such a dialogue.

Go also said he was ready to face any probe by the Senate ethics committee, chaired by Sen. Manny Pacquiao, even as he maintained he has not done anything “unethical.”

He said he is merely being associated with key players in the alleged anomalous procurement but nothing more.

“I was even the one who kept saying to charge and jail whoever is responsible (for corruption). It doesn’t matter if you helped the President in the campaign,” he said.

Go also maintained that he continues to respect Gordon, but that the latter should inhibit himself from investigating the Philippine Health Insurance Corporation (PhilHealth) as the state-run firm has dealings with the Philippine Red Cross, which Gordon heads.