Thread by @rapplerdotcom

The Senate blue ribbon committee, chaired by Senator Richard Gordon, resumes its probe into questionable pandemic contracts. President Rodrigo Duterte's ex-adviser Michael Yang is attending today's hearing. | via @maracepeda

@maracepeda Senators earlier cited Yang in contempt and issued an arrest warrant against him for ignoring two subpoenas compelling him to attend the ongoing investigation on anomalous pandemic contracts linked to him and his business associates. #BudgetWatch

LIVE:

@maracepeda Pharmally's chairman and president Huang Tzu Yen once again present in today's hearing. He says he has taken his oath before the Philippine Embassy in Singapore, where he is a resident. | via @maracepeda #BudgetWatch

@maracepeda LOOK: Michael Yang finally attends the Senate blue ribbon committee investigation on questionable pandemic contracts. He is attending today's hearing with an interpreter. | via @maracepeda #BudgetWatch

@maracepeda Michael Yang attends the Senate hearing from a hotel in Davao City. | via @lianbuan #BudgetWatch

@maracepeda @lianbuan The blue ribbon committee also has its own interpreter for this hearing. | via @maracepeda #BudgetWatch

@maracepeda @lianbuan The blue ribbon committee also issues a subpoena to Yan's business associate Rose Nono Lin, whom Sen Risa Hontiveros describes to be the link between Pharmally and Full Win. | via @maracepeda

Read more about Lin here: rappler.com/newsbreak/inve…

@maracepeda @lianbuan Gordon to Duterte: Mr President, hindi nyo po dapat protektahan yang Pharmally…You must protect the Filipino people. | via @maracepeda

@maracepeda @lianbuan Sen President Tito Sotto says PS-DBM and DOH did not submit to the blue ribbon committee a detailed inventory of their procurements and releases; says what the agencies submitted is a general breakdown of funds. | via @lianbuan

LOOK: From video of Senate's inspection: Boxes of face shields in the depot of PS-DBM. | via @lianbuan

Senators open with requests that the DOH submit a detailed report on the current inventory and distribution of items to hospitals. | via @sofiatomacruz LIVE

We’re expecting to hear from Pharmally officials today - after the company’s officials were served at least two subpoenas. Michael Yang, a former adviser to Duterte, is also here after the Senate issued a warrant of arrest against him. | via @sofiatomacruz

READ: A rundown of issues raised vs Pharmally in this piece by @jodeszgavilan: rappler.com/newsbreak/iq/t…

Huang Tzu Yen says they have 7 full-time employees, and hired contractuals for the delivery of the supplies, and adds they pay statutory benefits to full-time employees. | via @lianbuan LIVE

But Senator Joel Villanueva says he has records to show zero contribution to PhilHealth, Pag-IBIG, and SSS. | via @lianbuan LIVE

Senator Villanueva asks Pharmally where it got its capital before securing its first gov't contract for P54 million. Pharmally Pres. Huang Tzu Yen says the company has connections with suppliers - but Villanueva says this doesn’t answer his query. | via @sofiatomacruz

Rappler reporter @lianbuan wrote that Pharmally only had P625,000 capital before it started its run bagging at least P8 billion in pandemic contracts. rappler.com/newsbreak/in-d…

The auditor who prepared Pharmally's financial statements, Iluminada Sebial, says she will have to check records if the company paid contributions to SSS, PhilHealth, and Pag-IBIG. | via @lianbuan

Senator Cynthia Villar says the blue ribbon committee must consider that if Pharmally is only a distributor of Chinese suppliers, they need not have big finances. It's a business model, said Villar. | via @lianbuan LIVE

Lao says it is not required in procurement to scrutinize the financial statements of a company who wants to get a govt contract.

Experts we talked to said it's only common sense to do so. | via @lianbuan LIVE

Lao is reiterating that emergency procurements as allowed by Bayanihan 1 required only some basic documents like business permits, adding that their goal was to get supplies as fast as possible. The safeguard to this, said Lao, is not to pay until full delivery. | via @lianbuan

PhilGEPS head Rosa Maria Clemente said the status they give to contractors (Pharmally has platinum status) is meant only to ensure complete documents; the legal and financial soundness to bid is for the procuring entity to ensure, said Clemente. | via @lianbuan

If Pharmally was an importer, where is its importer's license, asks tax expert and CPA Mon Abrea who's a resource person in the Senate. | via @lianbuan LIVE

Abrea said while it's not illegal to have that much of a year-on-year increase, it's not normal either.

Pharmally's income jumped from zero in 2019 to P264 million in 2020. | via @lianbuan LIVE

Pharmally's input VAT was flagged to have potential underdeclaration of P402M.

This was an independent analysis of CPAs Jahleel-AN Burao and John Michael Lava, done with pool of procurement experts of Citizen's Budget Tracker and Right to Know, Right Now! rappler.com/nation/account…

Abrea said financial capacity and letter of credit would have been required to get an importer's license. | via @lianbuan LIVE

Senator Richard Gordon said Lao is "hiding" beneath the covers of Bayanihan Law, insists there is always a two-fold rule for procurement – check the legal and financial capacity. "Pagkakaibigan lang ang kapital," said Gordon. | via @lianbuan

Gordon also questioned why Overall Deputy Ombudsman Warren Liong, a CPA Lawyer who was director in PS-DBM when Lao was there, did not flag Pharmally. | via @lianbuan LIVE

Senator Joel Villanueva believes the Procurement Service of the DBM, which signed off on the contracts with Pharmally, should now be abolished. | via @maracepeda LIVE

Gordon asks Pharmally chairman and pres Huang Tzu Yen about their clients, but Huang says he can't reveal them due to a non-disclosure agreement.

Gordon: I don't believe in that non-disclosure agreement when people are dying out there. | via @maracepeda

Gordon asks the Anti-Money Laundering Council to look into transactions of Pharmally: The Anti-Money Laundering Council will be asked if there is a money trail to be proven here. | via @maracepeda

Hontiveros also moves for the blue ribbon panel to subpoena from the Bureau of Immigration the entry and exit information of Huang Tzu Yen and his father, Huang Wen Lie. | via @maracepeda

@maracepeda Duque denies there was double payment to the PS-DBM regarding face shields: Nung dumating yung mga gamit, yung mga PPEs at ibang pang mga gamit, ay dineliver sa DOH at wala ng binayaran ang DOH dahil may nauna na na deposit. | via @maracepeda

DOH Sec Francisco Duque III denies there was double payment to the PS-DBM regarding face shields: Nung dumating yung mga gamit, yung mga PPEs at ibang pang mga gamit, ay dineliver sa DOH at wala ng binayaran ang DOH dahil may nauna na na deposit. | via @maracepeda

Duque: So ang sagot ay kung may binayaran ba pagkatapos ng delivery, wala na po. | via @maracepeda

@maracepeda In the expensive face masks and shields, the government's defense has been that it was really the Suggested Retail Price (SRP) at that time.

Sen Francis Pangilinan said: But SRP is different than wholesale price. | via @lianbuan

Aguinaldo: We do not have the mandate to probe corruption, which is why we work with the Office of the Ombudsman and the DOJ. | via @lianbuan

Yesterday at the House budget hearings, Ombudsman Samuel Martires said he has expanded the fact-finding inquiry of the DOH to cover PS-DBM and Pharmally. Justice Sec Menardo Guevarra, head of anti-corruption task force, said they continue to observe Senate hearings. | @lianbuan

Michael Yang, through is interpreter, confirms his place of residence in the PH is #19 Narra Street in Forbes Park, Makati. Senate panel tried to serve subpoena to this address, but a driver told the subpoena server that Yang supposedly doesn't live there. | via @maracepeda

Yang says he has been out of the country for a while, so the driver might have assumed he is no longer returning. | via @maracepeda

Yang says he has been living in the Philippines for 22 years. | @maracepeda

Michael Yang denies that he is connected to Pharmally.

Rappler has found Pharmally Pharma chair Huang is a director also in Pharmally Biological. In the latter, Huang's co-directors are incoporators of Yang-led companies. rappler.com/newsbreak/inve…

Pressed by Sen Lacson, Yang said Pharmally approached him before, said he met Huang Tzu Yen at a previous meeting, and that he knows Pharmally director Linconn Ong. | @lianbuan

@lianbuan Yang claims he has nothing do with the registration or the operations of Pharmally. But pressed by Sen Ping Lacson, Yang admits Pharmally later approached him "for some assistance." | via @maracepeda

Yang says he met Pharmally's Huang Tzu Yen and his father Huang Wen Lie in 2017, but had "no communications" after that. | via @maracepeda LIVE

Yang says he has nothing to do with the PS-DBM award of contracts to Pharmally. But eventually, Yang said he introduced "friends" to Pharmally's Linconn Ong to connect to Chinese suppliers. | via @lianbuan LIVE

@lianbuan Lacson continues to press Yang. Yang eventually admits he introduced "friends" to Pharmally's Linconn Ong to connect the latter to Chinese suppliers.

Yang's interpreter: Linconn approached Mr Yang then Mr Yang introduced friends to Mr Linconn to help them with their supplies.

Yang interpreter: Mr Yang said that he only introduced [them]. As to where or who they chose [for the] dealings, he is not part, he does not know who or where did they actually purchase those stocks... Mr Yang only introduced, and then they negotiated on their own. | @maracepeda

Yang's interpreter: [He introduced Pharmally to] around 4 suppliers… So he introduced friends, individuals, and then probably these people could have introduced some other friends to them. | via @maracepeda LIVE

Lacson is asking Linconn Ong if it's true that after Yang introduced him to Chinese suppliers, he no longer participated in the latter talks.

Ong has not given a direct answer. | via @lianbuan LIVE

Pharmally's Ong: Totoo po 'yun na may mga pinapakilala si Mr Yang na mga suppliers at mga friends para po dito sa PPE project. | via @maracepeda LIVE

@maracepeda Lacson to Ong: 'Yun lang role nya? Di na siya nangialam?

Ong: I’m not privy to what's their discussion eh pero may pinapakilala siya. | via @maracepeda LIVE

Ong says that if they can't pay their Chinese suppliers, Yang guarantees for Pharmally.

Lacson: So hindi totoo na wala na siyang kinalaman.

Ong: Baka may na-miss ang interpreter. | via @lianbuan

Ong: In addition to that Mr Chair, he also guarantees for us. Nag-ga-guarantee sila para sa amin. Totoo po yung analysis ni Mr Chairman na medyo talaga pagdating sa financial. | via @maracepeda LIVE

Ong: May mga portion kami na diretso nagbayad sa suppliers kasi may mga pondo kami sa amin at siyempre savings ng incorporator or partners. There are certain items that we don't have enough funds to settle, so Mr Michael Yang guarantees for us. | via @maracepeda

Lacson: So hindi totoo na pinakilala ka lang at tapos na. Tuloy-tuloy ang kanyang participation by way of guaranteeing sa suppliers na babayaran sila. Parang utang? Sabihin na nating credit. | via @maracepeda LIVE

Ong said, as extracted by Lacson, that it's Michael Yang who guarantees with the Chinese suppliers whenever Pharmally cannot pay the suppliers. Letters of credit scarcely used, it was mostly Yang, said Ong. | via @lianbuan LIVE

Ong: The truth is tumulong si Mr Michael Yang (sa mga Chinese suppliers), and I think he's really connected in China. | via @lianbuan LIVE

@lianbuan Ong: Nung time na 'yun, actually we’re expecting the project to be very quick eh, so 'yun po, humingi po talaga kami ng tulong kay Mr Michael Yang. | via @maracepeda

Lacson: Parang sari-sari store na o transaksiyon na parang bilahan ng sasakyan lang na o ga-guarantiyahan ko, babayaran ka nito, binigay na sa 'yo yung sasakyan. Eh ito, bilyon ito eh! Ganun ba kadali 'yun? | via @maracepeda LIVE

Ong: Hindi po talaga madali 'yung nangyari nung mga panahon na 'yun.

Lacson: Hindi nga kapani-paniwala na ganun kadali ang transaksiyon involving billions of pesos. | via @maracepeda LIVE

Ong: Mr Chair, I cannot answer for Mr Michael Yang.

Lacson: Ayun nga, nagtuturuan na na kayo. | via @maracepeda LIVE

Ong confirms they did not use letter of credit to transact with their Chinese suppliers.

Lacson says it's hard to believe such a simplified system given that billions of government contracts were at stake. | via @lianbuan

Ong: The truth is talaga Mr Chair, tumulong talaga po si Mr Michael Yang. And I think he’s really connected with China. Meron naman kaming MOA nung time na 'yan, so I think it’s a good proof and boost of confidence in the suppliers. | via @maracepeda

Ong cannot recall what type of agreements they entered into with its partners.

Rappler found that in June this year, Pharmally bagged a new DOH contract worth P37.9 million for face shields through a joint venture with Business Beyond Limits OPC, incorporated in Feb 2019.

Huang Tzu Yen says he has not been in direct contact with Yang since 2017. | via @lianbuan LIVE

Pharmally's Huang: "To clarify one thing, I wish to say on record that Mr Yang and I are not in direct contact since 2017 March," says they communicated with Chinese suppliers introduced by Yang through WeChat. | via @maracepeda LIVE

Ong: Nag-uusap talaga kami ng mga Chinese supplier through WeChat

Lacson: Bilyon-bilyong ang usapan 'nyo, WeChat lang kayo nang WeChat?

Ong: We were really not able to travel at that time, Mr Chairman. | via @maracepeda LIVE

Lacson: It’s not only Mr Ong who’s being evasive. Mr Yang is likewise being evasive. Clearly, they’re being evasive. I really would move either not to lift the warrant of arrest previously issued by the Senate President or to issue a subsequent warrant of arrest for being evasive

Ong says Pharmally paid its Chinese suppliers through Union Bank. | via @lianbuan LIVE

Senate panel agrees to issue another arrest warrants for Yang and Ong for being evasive during the hearing today. | via @maracepeda LIVE

Ong said that whenever they have difficulty paying its suppliers, they would borrow money from friends. | via @lianbuan LIVE

Ong: Marami po kasing series of transaction 'yun, so meron naman po kaming naiipon na pera. So at the same time, sa mga series of transactions, kinakailangan po naming mangutang sa mga kaibigan. So 'di ko po dine-deny na meron kaming mga utang sa labas. | via @maracepeda

Drilon: The 1st transaction of Pharmally is P54M. The money that they had was P625,000. So where did the P53 million come from? He said from bank accounts. Whose bank accounts? | via @maracepeda LIVE

Lacson: There was really a grand scheme to allow Pharmally to get all these contracts. Unless Pharmally tells us the truth, we can just speculate what really happened. | via @lianbuan LIVE

Lacson: There is really a grand scheme to allow Pharmally to import all of these supplies. | via @maracepeda LIVE

Drilon on Ong: Here is a resource person who is clearly lying on the record, because he says the funds were corporate funds for Pharmally. But the audited financial statements indicate that beginning of 2020, they had only P625,000, which is the paid-up capital. | via @maracepeda

Drilon: Clearly, the corporation had no capacity to pay the initial order of P54 million. | via @maracepeda LIVE

Drilon moves for the Senate to arrest Ong "right now."

Ong earlier said he tested positive for COVID-19, but he has irked senators for being evasive during the hearing. | via @maracepeda LIVE

@maracepeda Ong: So for the first-ever transaction po of 500k (surgical masks), may access po kami sa inventory ng mga importers. At that time, I don't think we have an importer's license… Binigay sa amin ang stocks para ma-supply kay PS-DBM. | via @maracepeda LIVE

Yang translator: What Mr Yang said is that at the time when he introduced Linconn to the suppliers is that they also told them they can trust Mr Linconn regarding the payment... This is the Chinese way of doing business, mainly because of funds. | via @maracepeda

Gordon doesn't buy Yang's remarks: They’re public funds and they will be liable for it… You cannot just produce money out of nowhere. | via @maracepeda LIVE

Yang says he speaks a little bit of Filipino. Gordon now shows a video of Yang meeting with Duterte. Yang speaks in Filipino in this video.

Yang says his Filipino "has limitation, simple ones." | via @maracepeda LIVE

Gordon hits Yang for bringing an interpreter to this hearing, flashes photo of Yang directly speaking to Duterte's ear, so that means Yang's English and Filipino was understandable to the President. | via @maracepeda

Gordon: I'm saying don't make it appear that you need a translator because you’re the presidential economic adviser...I’m just making a point here that you can speak with the President in either English or Tagalog. | via @maracepeda LIVE

@maracepeda Gordon shows a charge sheet for Wen Li Chen (Lin Wei Xiong). Yang says he couldn't confirm this drug personality. LIVE

Gordon shows another photo of Yang and Allan Lim as the former insists he only knows a certain Lin Wei Xiong. LIVE

Yang confirms Rose Nono Lin, who is now facing a subpoena from the blue ribbon panel, is the wife of his other business associate Lin Weixiong. | via @maracepeda LIVE

Yang says he isn't aware if Lin Weixiong is the same as Allan Lim, a drug personality identified in the intelligence report of veteran anti-drug operator Acierto as the person who allegedly worked with Yang to bring shabu to PH. | via @maracepeda LIVE

Hontiveros asks Yang: 'Dahil close nga kayo ni President.... 'Di ba kayo na-concern na sabihan siya na Mr President, ang mga taong ito ay wanted for financial crimes, may standing warrant pa nga sa Taiwan. LIVE

Hontiveros does not believe that Yang was not able to inform the President that the people are in fact charged with financial crimes.

Yang clarifies that after finding out their business would not prosper in 2017, they stopped communicating with the President.

Hontiveros: Mahirap lang talaga maniwala na walang komunikasyon since 2017. Dinepensahan, very emotionally, ni President si Yang. 'Yang mga ganyang relationship na matagal 'yan, reciprocal 'yan.... Mahirap paniwalaan na walang communication.

Senate is back to discussing prudence and common sense. Lao insists that Bayanihan did not require them to check a company's net financial contracting capacity. | via @lianbuan LIVE

Lao, in raised voice: Common sense dictates we preserve the money of the government. We did not pay a single centavo until they delivered. That is the highest safeguard we could give to our country.

Drilon: Jesus christ, stop lecturing. | via @lianbuan

Huang Tzu Yen: The company borrowed money from Mr Yang, Linconn Ong was maybe just hesitant to say that because of courtesy, which is why he was evasive. | via @lianbuan LIVE

Huang: Since we were not able to finance these things, so we will not be blacklisted, Yang offered to lend us money. | via @lianbuan LIVE

@lianbuan Gordon points out that Yang has been insisting he did not have anything to do with Pharmally.

"But now, the cat is out of the bag, and until now you're being evasive," Gordon told Huang. | via @lianbuan LIVE

Yang, through interpreter: We didn't have anything to do to obtain those contracts, later on, we helped them pay the advances. | via @lianbuan LIVE

Nearly 6 hours into the hearing, Pharmally’s Huang Tzu Yen says Michael Yang lent money to the company to pay for goods it supplied to the govt. Yang earlier said he had no dealings with Pharmally. | via @sofiatomacruz LIVE

Huang: “I don’t understand why Mr Yang would say that. I thought he did a good thing.” | via @sofiatomacruz LIVE

@sofiatomacruz Yang explains that Pharmally Pharma is different from Pharmally Biological.

Pangilinan says what's in question is Yang's earlier statement that he had no link to Pharmally only to admit later that he not only acted as guarantor, but also lent money to Pharmally. | @lianbuan

@sofiatomacruz @lianbuan Yang earlier said he only introduced suppliers to Pharmally. He was also described as a “guarantor” for the firm, giving assurances to suppliers that Pharmally could pay for its orders. | via @sofiatomacruz

LIVE

@sofiatomacruz @lianbuan Pharmally is able to keep its business w/ gov't going through the former presidential adviser, not only guaranteeing but also lending them money. No letters of credit involved, only words, & billions sent to China through UnionBank. | via @lianbuan

LIVE

Pangilinan says this again brings into question the capability of Pharmally to supply medical goods and PS-DBM to order medical goods on behalf of the government. | via @sofiatomacruz

@sofiatomacruz Gordon moves to temporarily suspend the hearing for an hour so senators and resource persons can take their dinner. Hearing to resume right after. | via @maracepeda

The Senate blue ribbon committee resumes its hearing after an hour and a half. | via @maracepeda

Senator Kiko Pangilinan asks if the hearing can just be resumed next week, notes that Pharmally's Linconn Ong tested positive for COVID-19 and says committee should give Ong time to rest after the hours-long hearing today. | via @maracepeda LIVE

Gordon tells Ong that Senate security will be deployed to his home and he will not be allowed to go out. Gordon says an ambulance can be provided for him in case he needs it. | via @maracepeda LIVE

Wanting to give Pharmally director Linconn Ong time to rest, because he has COVID-19, some senators want to suspend the hearing for today. Sen Lacson wants to continue, suggests excuse Ong and interpellate the rest tonight. | via @lianbuan LIVE

Lacson says he'd rather that Ong be excused from tonight's hearing so senators can continue questioning resource persons. | via @maracepeda LIVE

Ong is under arrest for contempt, Gordon said to send OSAA to his home and take custody of him there instead and place ambulance. | via @lianbuan LIVE

Drilon gets frank with his colleagues, says he'd want the hearing to just be resumed on Monday. The Senate Minority Leader says with a laugh, "I will be candid to my good friends, Senator Lacson and Senator Sotto: Pagod na po ako." | via @maracepeda

Senator Gordon, chairman of the blue ribbon committee, rules – suspend the hearing today, continue next week.

"We're all tired, but this has been a good day, we are reaching closer to the truth." | via @lianbuan LIVE

Gordon decides to just suspend today's hearing then resume at 10 am on Monday, September 13. | via @maracepeda

Gordon is now asking Ong to provide the committee with his address, where Senate security personnel will be deployed to ensure he would not leave his home. | via @maracepeda

The Senate blue ribbon committee suspends its hearing tonight, to resume on Monday, September 13, at 10 am. | via @maracepeda