Pharmally a new trading company earned massive P393M from gov’t Covid supply contracts

[ASEAN NOW News]

Senate Minority Leader Franklin Drilon (file photo)

 

MANILA, Philippines — Pharmally Pharmaceutical Corp., which bagged the government contracts for the supply of face masks and face shields, generated a profit of P393 million from April to June 2020, Senate Minority Leader Franklin Drilon said Monday.

 

“Pharmally generated a profit of P393 million from government transactions from April to June 2020”, Drilon said in an interview on Teleradyo.

 

According to the Inquirer, the Senate blue ribbon committee is currently investigating the controversial procurement of “overpriced” personal protective equipment (PPE), face masks and shields made by the Department of Budget and Management-Procurement Service on behalf of the Department of Health.

 

Pharmally Pharmaceutical Corp. received government contracts worth over P8.6 billion in 2020 despite being only several months old and having just P625,000 in paid-up capital.

 

Investigation needed

 

Drilon reiterated that Pharmally’s tax records and tax liabilities need to be investigated.

 

Based on records, Pharmally is classified as a domestic corporation subject to the provisions of Section 27 of the Tax Code, the senator noted.

 

“This firm is not a manufacturing company but a trading company, so there’s no manufacturing cost for the items, they just bought these supplies from China and sold them to us,” Drilon pointed out.

 

“The question is, did they pay the 12-percent value added tax? Did they pay income taxes for the P393-million profit they generated in 2020?” he added