PHARMALLY Pharmaceuticals Corporation chief executive officer Huang Tzu Yen on Friday, September 10, 2021, said Davao-based Chinese businessman Michael Yang lent his company the funds used to purchase medical supplies and fulfill its contract with the Procurement Service (PS) of the Department of Budget and Management (DBM).
Huang's revelation during the Senate blue ribbon committee hearing contradicted the initial denial of Yang, former presidential adviser for economic affairs to President Rodrigo Duterte, that he had dealings with Pharmally.
Huang made the admission after he was informed by committee chairman Senator Richard Gordon that Pharmally director Liconn Ong will get arrested for being evasive in answering questions.
“I think Ong was hesitant in saying that because of courtesy which is why he was being evasive,” Gordon said.
“When someone helped you in a difficult time and you have to say things that might implicate them, it's just very difficult,” he added.
Huang said they only received help from Yang after they were awarded the P8.68-billion contract to supply the PS-DBM with face masks, personal protective equipment and coronavirus disease 2019 (Covid-19) testing kits.
He said the funds lent by Yang covered the first batch of face masks and PPE sets that Pharmally procured.
He did not specify the amount lent by Yang, saying he has to check their records.
Ong later confirmed Huang’s statement.
During the committee’s hearing on Tuesday, September 7, it was presented that the first batch delivered by Pharmally to PS on April 14, 2020 consisted of 2.4 million pieces with a total amount of P54 million.
Earlier in the hearing, Yang said he has no business dealings with Pharmally. He said he found out about Pharmally only through news reports, although he met Huang during a meeting with President Duterte in 2017.
Yang said he and Ong were introduced to each other by his friends.
He said Ong approached him and asked for his help in getting in touch with suppliers of medical supplies in China.
Yang said he introduced Ong to his Chinese friend, but he did not take part in the negotiations. He said his friend may have also introduced Ong to other suppliers, but he was not aware of this.
Yang confirmed Ong’s statement that he supported Pharmally by guaranteeing to the manufacturers that the company will be able to pay for the medical supplies.
Yang explained that the Chinese do business based on trust.
During the hearing, Ong also revealed that he signed a document together with Yang but could not specify what it was.
Ong asked for more time to provide the panel with a copy of the document.
Senators grilled Ong on how Pharmally was able to pay for the medical supplies when it only had P625,000 paid-up capital.
Ong initially said they used corporate funds but later on claimed that they paid the manufacturers only after the Philippine government released the payment.
Senators, irked by the inconsistent answers of Yang and Ong, moved for their arrest and detention at the Senate office “until they tell the truth” in the committee hearing.
“May I move or issue the motion Mr. Chairman, it’s not only Mr. Ong who is being evasive. I think Mr. Yang likewise is being evasive because we cannot get an answer...and clearly they are being evasive,” Senator Panfilo Lacson said.
“So I would really move, either not to lift the warrant of arrest issued by the Senate president or issue a subsequent warrant of arrest for being evasive,” he added.
Senator Risa Hontiveros seconded Lacson’s motion.
Despite Huang’s revelation in order to save Ong from getting arrested, Gordon said they will have Ong arrested until he tells all the truth.