Metro Manila (CNN Philippines, August 31) — President Rodrigo Duterte came to the defense of two of his former appointees who are now in the midst of controversy surrounding the government’s procurement of medical supplies for its pandemic response.
During his taped address that aired on Tuesday, he said no one can question the appointment of his former economic adviser, Chinese businessman Michael Yang, and ex-Budget Undersecretary Lloyd Christopher Lao.
Last week, senators harped on the alleged ties between Yang and Pharmally Pharmaceutical Corporation, a small company that has been the government’s biggest provider of medical supplies during the COVID-19 pandemic.
The President described the Davao-based trader as the person who helped the Philippine government close deals.
“Lowest bidding kaya ito. Ang nagbili lowest bid. Ano ba reklamo niyo? Kasi si Michael Yang daw. Negosyante ito adre, hindi ito na nagtatapon ito ng pera. May contact ito sa China na malalaking korporasyon at siya ang nag-pagador and made their entry here,” he said.
Duterte added: “Akala ko ba let us go to China and invite the investors here? Ayun nag-invest nga pero sa panahon ng pandemya. What’s wrong with that?”
[Translator: This is the lowest bidder. What are you complaining about? Because Michael Yang is linked here? He is a businessman, he knows how to use his money. He has the contact of big companies in China and he helped the businesses enter the country. I thought you wanted investors to come? They entered during the pandemic, what’s wrong with that?]
Pharmally is now in the spotlight as Congressional hearings reveal it has bagged over P8.68 billion worth of government contracts, including the purchase of allegedly overpriced medical supplies for COVID-19. Based on government documents, it is a small company in Taguig incorporated in September 2019 and with a paid-up capital of only P625,000.
Meanwhile, Duterte also defended Lao, who awarded the deal to Pharmally when he was the head of the Procurement Service of the Department of Budget and Management.
Duterte added there is nothing wrong with appointing his fraternity brother who has worked with him since he was the mayor of Davao City, but he also told lawmakers not to spare Lao if he is found guilty of lapses in the bidding and procurement process.
“Anong masama kung magbayad ako ng utang? Nagtanong kayo saan galing itong tao… Ito fraternity brothers ko. Pero kung sabihin may nakuha o nakita kayo na mali, ipakulong niyo,” he said.
[Translation: What’s wrong with paying a debt of gratitude? You’re asking where he came from. He’s my fraternity brother. But if you find that he did something wrong, send him to jail.]
Senators earlier raised concerned about Lao’s failure to cross-check the credentials of Pharmally. Senate Minority Leader Franklin Drilon said the missteps in procuring from the small company point to a deliberate “plan to plunder” public coffers, with a supposedly mysterious backer whose identity has yet to be revealed.
During several rounds of inquiries into the Department of Health’s alleged misuse of COVID-19 response funds, lawmakers pointed out that Lao’s office bought face masks at ₱13 and ₱27 each while the Philippine Red Cross purchased them at only ₱5.
Lao insisted that face masks and face shields procured in the early days of the pandemic were not overpriced because they were bought when global supply was a problem.
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