MANILA, Philippines — The Office of the Ombudsman has affirmed its earlier ruling finding probable cause to file graft cases before the Sandiganbayan against former top officials of the Procurement Service of the Department of Budget and Management (PS-DBM) in connection with the Pharmally procurement mess amounting to P11.5 billion.
In an 18-page order approved by Ombudsman Samuel Martires on May 2, the anti-graft agency denied the supplemental motion for reconsideration of former PS-DBM executive director Lloyd Christopher Lao, seeking the reversal of its Aug. 14, 2023 resolution finding probable cause to file graft charges against him and several other former PS-DBM officials.
The ombudsman found no merit in Lao’s argument that the awarding of supply contracts worth billions of pesos to Pharmally Pharmaceutical Corp. was done in good faith.
Lao, in his motion, argued that Republic Act 11469 or the Bayanihan To Heal as One Act and the Government Procurement Policy Board Resolution No. 01-2020 neither require a minimum number of years of corporate existence nor a minimum paid-up capital to be considered a legally, technically and financially capable bidder.
The ombudsman, however, maintained that the procurement transactions were attended with irregularities.
The ombudsman said Pharmally not only lacked any busines s operations, but was even under financial losses prior to the awarding of the contracts.
“Pharmally’s funds came from its irregular transactions with PS-DBM. Its f inancial statements indicate that prior to the 2020 dealings with the PS-DBM, the company had no business activity from September to December 2019. Pharmally even incurred a net loss of P25,550.00,” the ombudsman’s order read.
When PS-DBM awarded procurement contracts to Pharmally in 2020, the corporation earned a net taxable income of P318,337,099 with a declared net of P7,485,401,046, according to the ombudsman.
The ombudsman maintained that Lao, former PS-DBM procurement group director and erstwhile overall deputy ombudsman Warren Lex Liong and former PS-DBM procurement management officer Paul Jasper de Guzman must be charged with three counts each of violation of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.
Also ordered charged were the executives of Pharmally – its president Twinkle Dargani, treasurer and secretary Mohit Dargani, directors Linconn Ong and Justine Garado and board member Huang Tzu Yen.
Other PS-DBM officials – director IV Christine Marie Suntay, officer-in-charge Procurement Division chief Webster Laureñana, and employees August Ylagan and Jasonmer Uayan, together with Pharmally employee Krizle Grace Magno – were ordered charged wi th graft.
The ombudsman, however, modified its 2023 resolution to include Pharmally financial manager Lin Weixiong among the people that must be charged with three counts of graft.
The ombudsman said a review of relevant documents revealed that Lin, a Chinese citizen, was appointed as financial manager of Pharmally, a domestic corporation, in violation of the Anti-Dummy Law.
The ombudsman said the appointment was done “even if Lin was neither a stockholder nor a board member of the corporation.”
The ombudsman’s investigation stemmed from the complaint filed by Sen. Risa Hontiveros and former senator Richard Gordon in 2022 amid alleged anomalies in the awarding of contracts totaling P11.5 billion to Pharmally for the supply of face shields, face masks, test kits and other COVID medical items for the government’s pandemic response.
MANILA, Philippines — The entry of foreign investors will not adversely affect local creatives employed in the advertising industry, a Senate committee hearing on economic Charter change learned yesterday.
Ad Standards Council legal counsel Rudolph Jularbal, speaking before the Senate committee, said that as long as self-regulation remains in place foreign ownership would not be a threat to the local advertising industry.
“As long as the self-regulation regime is functional, regardless of ownership of advertising agencies, content will be regulated effectively. We have 50 years of self-regulation in the Philippines, and it has been very successful,” Jularbal said.
The entry of foreign owners in advertising does not affect job opportunities because Filipinos get hired by foreign companies the same way foreign talents also contribute to local advertising, Jularbal said.
“The developments in technology have changed the landscape, insofar as job creation is concerned. In fact, Filipino talent works for foreign companies online. And the reverse is also true – foreign talents are contributors to advertising content online. Technology has really changed the landscape compared to what it was in 1987,” he added.
Anna Chua-Norbert, the group chief cultural officer representing DDB Group Philippines, added that “as practitioners, we have seen all sorts of advertising agencies already in the country – whether international or local – that are already here, so it really doesn’t change much for us.”
Two media executives present in the hearing raised concerns about foreign interference in domestic affairs once foreign ownership restrictions on advertising are eased.
Jose Policarpio Jr., IBC president and CEO, expressed concern about the economic Charter change effect on the “media battle” between Philippines and China over the West Philippine Sea.
“The entry of foreign entities in the country could enhance the foreign interests to the detriment of local interests,” he said.
United Print and Multimedia Group Philippines president Barbie Atienza from Manila Bulletin added that another concern is its effect on editorial independence.
“Reality bites that advertisers have the money, and who has the money has a lot of clout. Advertising would have influence over content. It is still a golden rule that who has the gold makes the rules. When they tell us to be mum about certain news that are detrimental to them, to a certain extent, there is always a sense of compulsion to submit,” Atienza said.
In an ambush interview after the hearing, Sen. Sonny Angara said his subcommittee is wrapping up after previously holding hearings on opening up foreign investments to education and public utilities.
The Senate panel will hold Charter change consultations in Baguio, Cebu and Cagayan de Oro, before the committee concludes and prepares its report for plenary debates in the incoming third regular session, he added.
The Senate subcommittee on constitutional amendments resumed its hearings on the Senate Resolution of Both Houses 6, which seeks to amend the 1987 Constitution by easing foreign ownership on advertising, public utilities and higher education.
MANILA, Philippines — Agriculture Secretary Francisco Tiu Laurel Jr. has allowed canners to import frozen bonito more than two weeks after he ordered a temporary import suspension of the fish, following reports that imported fish stocks are diverted to the wet markets.
In issuing Memorandum Order 18, Tiu Laurel allowed the issuance of sanitary and phytosanitary import clearance for the importation of bonito “for canning purposes.” An SPSIC is issued by the government to certify that an imported good is safe for humans, plants and animals. It is required to be secured before any imported goods enter the country.
Tiu Laurel earlier issued MO 14 to suspend the issuance of the SPSIC for the importation of frozen round scad (galunggong), mackerel (alumahan) and bonito (tulingan) after finding that at least 100,000 metric tons of imported galunggong were diverted to wet markets in the last nine months.
According to Tiu Laurel, the issuance of the memorandum order was necessary to curb and prevent the diversion of frozen imported fish stocks intended for canners, processors and institutional buyers.
He also ordered a crackdown on importers involved in the diversion of imported fish stocks to the wet market.
Danilo Fausto, Philippine Chamber of Agriculture and Food president, said the issuance of MO 18 would ensure that local canneries have sufficient raw material supply and prevent price spikes.
He noted that most of the imported fish products are not locally available or insufficient to meet canners’ requirement.
Fausto said local canners are experiencing “pressure” from government agencies in minimizing their price hikes since prices of canned items like sardines are regulated by the government.
“Also, local prices for similar species are often higher than imported ones. Consequently, it has squeezed canneries’ profit margins leading to the sale or closure of some canneries,” he added.
Based on the Department of Agriculture monitoring, the retail price of local galunggong ranged between P150 and P250 per kilo; Indian mackerel, between P200 and P360 per kilo; bonito, between P140 and P200 per kilo; sardines or tamban between P100 and P200 per kilo; tilapia, between P100 and P160; bangus or milkfish, between P130 and P240 per kilo; and salmon head, between P140 and P260 per kilo. – Jasper Emmanuel Arcalas
MANILA, Philippines — It would be best for the Energy Regulatory Commission (ERC) to withhold the requests of power distributors and generating firms to collect higher electricity bills while the industry is on yellow alert due to high power demand this summer, a member of the House of Representatives said.
Rep. Dan Fernandez, vice chairman of the House energy committee, also urged the state-run agency to defer the requests while a December 2023 Court of Appeals decision favoring the Manila Electric Co. is pending before the Supreme Court (SC).
“While the appeal remains pending with the SC, I strongly urge the ERC to suspend and withhold approval of new PSAs between Meralco and the two SMC generating companies until the high court reaches a final decision on the case against their bids to increase electricity rates,” Fernandez said, referring to the power supply agreements between Meralco and South Premier Power Corp. (SPPC) and San Miguel Energy Corp. (SMEC) – two of San Miguel Corp.’s subsidiaries.
He added that it would be “better for the ERC to wait for the SC to render judgment on the controversial case involving the PSAs between Meralco and SMC so as not to preempt or render moot and academic its ruling on the matter.”
The congressman from the lone district of Sta. Rosa in Laguna emphasized the need for the OSG to elevate the case to the high tribunal as it involved the collection of higher power rates that would further burden consumers, who are already paying one of the world’s highest electricity bills.
SPPC runs the Ilijan gas-fired power plant, while the SMEC runs the coal-fired power plant in Sual. Both companies, along with Meralco, have asked the ERC to approve a 30-centavo rate increase for a new PSA.
“While demand for power supply is acute at this time, we also have the responsibility to protect consumers against price gouging. There are ways to meet the demand that will not unduly and unreasonably raise power rates,” Fernandez said.
Fernandez stressed that the ERC cannot just approve another PSA between SMC and Meralco without filing an appeal of the CA’s December 2023 ruling with the Supreme Court for final judgment.