Partial Committee Report BRC COA DOH Final Formatted 31jan2022 330PM RJG Signed

EIGHTEENTH CONGRESS OF THE PHILIPPINES )
REPUBLIC OF THE PHILIPPINES )

Third Regular Session
SENATE
COMMITTEE REPORT NO. _______
Submitted by the Committee on Accountability of Public Officers and

Investigations on _______________.
2020 COA REPORT AND OTHER ISSUES RELATED TO BUDGET UTILIZATION OF

THE DEPARTMENT OF HEALTH (DOH), ESPECIALLY ITS EXPENDITURES
RELATED TO THE FIGHT AGAINST COVID
Privilege Speech of Senator Risa Hontiveros entitled, “MANDATE OF THE

COMMISSION ON AUDIT/INCOMPETENCE OF THE DOH”
P.S. RES. NO. 858 (“RESOLUTION DIRECTING THE SENATE COMMITTEE OF THE WHOLE
ON THE VACCINATION PROGRAM TO CONDUCT AN INQUIRY ON THE PROCUREMENT OF
COVID-19 VACCINES BY LOCAL GOVERNMENT UNITS AND THE PRIVATE SECTOR THROUGH
THE MULTI-PARTY AGREEMENTS, WITH THE END IN VIEW OF RAMPING UP VACCINATION IN
THE RURAL AREA AND IN THE PRIVATE SECTOR, AND ACHIEVING HERD IMMUNITY AGAINST
COVID-19 FOR THE COUNTRY”) by Senator Juan Miguel “Migz” F. Zubiri
P.S. RES. NO. 859 (“RESOLUTION DIRECTING THE APPROPRIATE SENATE COMMITTEE
TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE FINDINGS OF COMMISSION ON
AUDIT [COA] REPORT ON THE DEPARTMENT OF HEALTH [DOH] ON THE REPORTED UNSPENT
FUNDS, MISSTATEMENTS, IRREGULARITIES AND DEFICIENCIES, WITH THE END VIEW OF
ADDRESSING RECURRENT ISSUES THAT HAS PLAGUED ITS SERVICES, AS WELL AS THE
PERSISTENT FAULTS AND LAPSES THAT GIVE RISE TO WASTAGE EVEN AMIDST TIMES OF
SCARCITY AND SHORTAGE, AND HOLDING ACCOUNTABLE IDENTIFYING AND HOLDING
ACCOUNTABLE THOSE RESPONSIBLE FOR THE SAME”) by Senator Leila M. De Lima
TO CONDUCT AN INVESTIGATION IN AID OF LEGISLATION ON THE PAYMENT CLAIMS ISSUES
BETWEEN PHILHEALTH AND PRIVATE HOSPITALS WITH THE END IN VIEW OF ENSURING
UNINTERRUPTED HEALTH CARE AND SOCIAL PROTECTION FOR FILIPINOS”) by Senator Risa
Hontiveros
TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE NON-PAYMENT OF SPECIAL RISK
ALLOWANCE [SRA] AND OTHER BENEFITS TO HEALTH CARE WORKERS, WITH THE END IN
VIEW OF IDENTIFYING MEASURES NECESSARY TO EXPEDITE THE SYSTEM FOR DISBURSING
THE SRA AND OTHER BENEFITS TO WHICH HEALTH CARE WORKERS ARE ENTITLED TO
RECEIVE AS MANDATED BY LAW”) by Senator Leila M. De Lima
Recommending approval of the Committee Report.
Sponsor: Senator Richard J. Gordon
1
Mr. President:
The Committee on Accountability of Public Officers and Investigations (Blue Ribbon)
has conducted an inquiry, in aid of legislation, on the alleged misfeasance, malfeasance,
and nonfeasance on the 2020 COA Report and other issues related to budget utilization
of the Department of Health (DOH), especially its expenditures related to the fight against
Covid.
The Committee on Accountability of Public Officers and Investigations (Blue Ribbon)
has the honor to submit to the Senate its Partial Committee Report, after conducting an
inquiry.
Recommending the adoption of the recommendations contained therein.
PARTIAL COMMITTEE REPORT
“Pity the nation whose people are sheep

And whose shepherds mislead them
Pity the nation whose leaders are liars
Whose sages are silenced
And whose bigots haunt the airwaves
Pity the nation that raises not its voice
Except to praise conquerors
And acclaim the bully as hero[.]”
-“PITY THE NATION”

Lawrence Ferlinghetti (After Khalil Gibran) 2007
2
TABLE OF CONTENTS
PART PAGES
I. OVERVIEW 4 to 13
II. TIMELINE 14 to 33
III. DISCUSSION 34 to 87
IV. RECOMMENDATIONS 88 to 105
V. EPILOGUE 106 to 111

VI SIGNATURE PAGES 111 to 113
3
I. OVERVIEW
1. The Senate Committee on Accountability of Public Officers and
Investigations (“Blue Ribbon Committee”), in advance and preliminary to a complete
Committee Report, submits this Partial Committee Report (“Partial Report”) on its
investigation, in aid of legislation, of the 2020 Commission on Audit (“COA”) Report and
Other Issues Related to the Budget Utilization of the Department of Health (“DOH”),
Especially its Expenditures in the Fight Against COVID-19 Pandemic.
2. The Blue Ribbon Committee, motu proprio, pursues this investigation in
aid of legislation in accordance with its mandate, to wit:
“The Committee, in aid of legislation, shall have jurisdiction over all

legislative matters relating to, including investigation of,
malfeasance, misfeasance, and nonfeasance in office by officers and
employees of the government, its branches, agencies, subdivisions and
instrumentalities; implementation of the provision of the Constitution on
nepotism; and investigation of any matter of public interest on its own
initiative or brought to its attention by any member of the Senate.”1
3. The Filipino People struggle in the fight against COVID-19. The Philippines
has implemented “among the fiercest and longest-lasting [lockdowns] in the world”2
resulting in the country’s Gross Domestic Product plummeting by nearly ten percent
(10%)3; the worst since 1947 or close to a century.
4. Unsurprisingly, the Philippines’ pandemic response has garnered distressing
indictments. The Bloomberg Covid Resilience Rankings4 has identified the Philippines as
1
Senate Blue Ribbon Committee, 18th Congress Rules, Article I, Section 1 (14 August 2019).
2
Economist Magazine available at: https://www.economist.com/asia/2020/07/11/the-philippines-fierce-lockdown-drags-on-despite-uncertain-benefits
3
https://psa.gov.ph/content/philippine-gdp-posts-83-percent-fourth-quarter-2020-95-percent-full-year-2020
4
https://www.bloomberg.com/news/articles/2021-09-29/why-the-philippines-just-became-the-worst-place-to-be-in-covid
4
consistently the “worst place to be in Covid”. The Nikkei Asia Covid-19 Recovery Index5
ranks the Philippines as the last or 121st of 121 countries. The World Bank, in its annual
report, tagged the Philippines as its top borrower of loans in the amount of approximately
three billion dollars in United States currency (USD 3 billion) and equivalent to one
hundred fifty billion pesos in Philippine currency (PHP 150 billion). One of Southeast Asia’s
most reputable banks cut its growth forecast for the Philippines, which it labeled as a
“laggard”6; a far cry from the World Bank’s declaration in 2013 that the Philippines was
“no longer the sick man of Asia, but the rising tiger.”7 International analysts’ criticisms
are consistent with the Philippines’ own somber synthesis of its economic present and
future. The National Economic Development Authority (“NEDA”) reports that the
Philippines lost P4.3 trillion in 2020, stands to lose at least P37 trillion in the next 10 to
40 years, and the economy’s return to pre-pandemic levels may be expected only in late
2022 or early 2023.8
5. It is thus apparent that one of the Philippines’ prime concerns ought to be
an adequate pandemic recovery response. Any impediment thereto imperils the country’s
prostrated healthcare system; credit ratings; foreign direct investments; job-generation;
and every Filipino family’s ability to put food on the table, to set aside savings for medical
emergencies, and to live lives beyond mere daily survival.
6. Any act or omission of graft and corrupt practices aimed at pilfering the
public coffers - during this catastrophic pandemic - is thus unconscionable. Such acts and
omissions are perfidious and inimical to the Philippines’ national interests. Such crimes or
5
https://asia.nikkei.com/Spotlight/Coronavirus/COVID-19-Recovery-Index/China-falls-from-top-spot-in-Nikkei-COVID-recovery-ranking
6
https://www.dbs.com.sg/treasures/templatedata/article/generic/data/en/GR/082021/210810_insights_philippines.xml; and
https://asiatimes.com/2021/07/duterte-restores-philippines-as-sick-man-of-asia/
7
https://www.worldbank.org/en/news/speech/2013/02/06/Press-Statement
8
https://neda.gov.ph/covid-19-pandemic-to-cost-php-41-4-t-for-the-next-40-years-neda/
5
offenses against the Sovereign Filipino People are vile, callous, and repugnant to the
Philippines’ vision of a just and humane society.
7. Amidst massive corruption, the Senate Blue Ribbon Committee proceeds
with its investigation in aid of legislation guided by the 1987 Philippine Constitution’s
sacred doctrine that “[p]ublic office is a public trust.”9 It likewise proceeds with inspiration
from the meticulous, patriotic, and steadfast efforts of the COA against “irregular,
unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of
government funds and properties.”10
8. Several proceedings of the Blue Ribbon Committee have lifted the veil on
acts and omissions tantamount to violations of the multiple laws, inter alia:
8.1. Government Procurement Reform Act11;

8.2. Revised Corporation Code12;
8.3. Revised Penal Code13;
8.4. National Internal Revenue Code (“NIRC” or the “Tax Code”)14;
8.5. Anti -Graft and Corrupt Practices Act15; and
8.6. The Law Against Plunder16.
9. The Senate Blue Ribbon Committee’s proceedings have uncovered
reprehensible fraud, waste, and abuse in the Philippines’ pandemic recovery. Unearthed
so far are merely the apices of atrocious syndicated corruption; its roots bury deep and
wide across the Philippines’ political, social, economic, and cultural spaces. It constrains
this Committee to continue its investigation in aid of legislation into a grand conspiracy
9
1987 Philippine Constitution, Article XI (Accountability of Public Officers), Section 1.
10
1987 Philippine Constitution, Article IX (Constitutional Commissions), D (Commission on Audit), Sec. 2.
11
Government Procurement Reform Act, Republic Act No. 9184 (2003), Sec. 65 (a) (5) and (b) (4).
12
Revised Corporation Code of the Philippines, Republic Act No. 11232 (2019), Sec. 166.
13
Revised Penal Code, Act No. 3815 (1930).
14
National Internal Revenue Code of 1997 (as amended).
15
Anti-Graft and Corrupt Practices Act, Republic Act No. 3019 (1960).
16
Anti-Plunder Act, Republic Act No. 7080, (1991), as amended.
6
among public officials and private persons such as the Pharmally Pharmaceutical
Corporation (“Pharmally”) and its officers and employees; Chinese entrepreneurs with
alleged ties to heinous crimes, including Huang Tzu Yen (Singaporean), Yang Hong Ming
or “Michael Yang” (Chinese), and Lin Weixiong; sworn officials of the Procurement
Service-Department of Budget and Management (“PS-DBM”) such as its former Office-in-
Charge (“OIC”) Undersecretary (“Usec.”) Christopher Lloyd A. Lao; Atty. Warren Rex H.
Liong (then at the PS-DBM but now appointed as Overall Deputy Ombudsman); and some
of the highest officials in the executive branch of the national government.
10. The pre-meditated plunder commences with appointing an all-in-one
trusted election supporter, a bent lawyer who reports and is accountable only to the
President17 and to no other, is plentifully corrupt, and one who has a deplorable sense of
indifference to the suffering of others, to a low- profile, but which- turns- out to be a
highly-lucrative government posting. The once-in-a-century pandemic must have come
to them as manna from heaven: hulog ng langit sa kanilang masamang balak, habang
ang sambayanan ay nagdurusa sa hagupit ng mala-impyernong pamumuhay. As
concertmaster, he ensures that the contracts are given mostly to a favored or favorite
supplier even if the corporation will not even qualify technically, legally, and financially.
He, who before reaching incredible notoriety in this controversy involving Pharmally, had
already brandished a sordid record of attempted corruption and earned a reputation for
being an extortionist presidential appointee in the Office of the Special Assistant to the
President and the Housing and Land Use Regulatory Board (“HLURB”). He, who after his
misdeeds were done, had the audacity to apply as Overall Deputy Ombudsman. This is
Lloyd Christopher Lao at PS-DBM.
17
TSN Hearing 3 dated 27 August 2021, page 238.
7
11. One needed a “financier,” a racketeer, a Chinese- national friend of the
President and an erstwhile dubiously-appointed economic adviser despite being a foreign
national (from a country that has a simmering dispute with us over our territory in the
West Philippine Sea). Could he be a “sleeper” deep penetration agent of China? He whose
only apparent aim in life is to accumulate more and more money for himself, and for
political personalities powerful enough to protect him. Did the Chief Executive not make
a pivot turn in foreign policy to, not an independent stand against the US, but rather, a
stand that is blatantly pro-China? Despite decades of lucrative and peaceful sojourn in
our country, his care is not for others who had not only been hospitable to him, but also
even allowed him to amass great wealth. He befriends the then mayor who has made
him wealthier; protecting him even more after the mayor has become president. He has
no healthy respect for law for he had always been sheltered by the mayor, and now the
chief executive of the land. He displays arrogance during hearings, evincing a lack of
respect for authority. He was mentioned once in a report as, aside from many roles, a
drug trade financier. He utters obvious lies during hearings with nary a care. His conceit
is displayed for all to see. It seems to become clearer that his role might not be that of a
mere financier; but this “pagador” has played a role in this scandal more than that of a
mere financier. He refuses to tell the Committee the source of his money, the extent of
his businesses and holdings, how much taxes he has paid; he prevaricates at the drop of
a hat: instructing his people not to admit that he lives in a Forbes Park address thus
frustrating the subpoena service; initially he avers that he had no more dealings with
Pharmally after the 2017 Davao introductions, only to admit later that indeed he
introduced Pharmally to his friends18, who had the wherewithal to assist Pharmally to
deliver on its contracts, guaranteed many of Pharmally supplies purchases and that he
loaned or fronted money to them- giving rise to a well- founded suspicion that his money
is illegally obtained and thus needed to be laundered. He has not even shown the
18
Senate TSN Hearing No. 13 dated 28 Oct. 2021, page 227; Senate TSN Hearing No. 14 dated 04 Nov. 2021, page 102.
8
Committee whether he has paid taxes for the interests on the loans. In fact, we
discovered that in almost a quarter of a century of staying in the Philippines, conducting
lucrative businesses, he started paying taxes only recently in 2018, declaring income of
Two Hundred Eighty-Eight Thousand Philippine Pesos (P288,000.00) for the year, and
paying a measly amount of Seven Thousand Philippine Pesos (P7,600.00).19 Financing
the Pharmally contracts was a sure way of washing his cash. He, for all intents and
purposes, is the co- conductor of this horrible mess. This is Porsche-owner, racketeer
Yang Hong Ming aka Michael Yang.
12. The foreign national racketeer, suspected to have ties to immensely wealthy
international criminal drug syndicates, needed to erase his fingerprints in the
transactions, conceal his considerable participation in enabling graft and corruption, and
sever any links to co-conspirators who inhabit the highest halls of political power in the
Philippines by ensuring crucial positions in the conspiracy are held by long-standing
discrete business partners. Records reveal that Pharmally’s Board unanimously appointed
a Financial Manager who was not an incorporator, not a shareholder of a single share of
stock, and without any trace of participation in reportorial requirements to the SEC but
granted by Pharmally the extraordinary corporate authority to, among others, freely
withdraw funds from Pharmally’s bank accounts due to the express purpose of ensuring
Pharmally’s payments to Michael Yang. All over the scenes of the crime are Michael Yang’s
business partners including but not limited to Rose Nono Lin, Gerald T. Cruz, and Lin
Weixiong.
13. The scheme by corrupt visionaries- for they were able to anticipate the
beneficial effects to them of a delayed border closure in ardent defiance of popular calls
to the contrary in the face of Covid-19, and the pernicious health consequences of the
19
Michael Yang Letter dated 03 November 2021, on file with the Blue Ribbon Committee.
9
pandemic- involved providing the government with supposedly “scarce” supplies, sourced
from questionably legitimate health- supplier/corporations and select opportunistic
friends from abroad, ensuring the monopoly of supplies and thus maximizing the
opportunities for immoral pecuniary gain.
14. A supplier was thus required to be in the cast. Found or purposely designed
as an intermediary for graft and corruption was a very young corporation incorporated
only in September of 2019. It had no experience contracting with any one- neither with
the private or public sectors. It had entered into zero contracts, and had a paid up capital
of a measly P625,000. Pharmally was a convenient supplier; convenient for his purposes.
Yang knew them intimately- Lincoln Ong was his translator, and Mohit Dargani purported
himself to be a staff member of “Economic Adviser” Yang- and already introduced them
in 2017 to the President. He thus used them as a front. This corporation did not even
possess a modicum of legal, technical, and financial capacity, under the exacting legal
standards, principles, and provisions of the country’s procurement law including the 2003
Government Procurement Reform Act or Republic Act No. 9184, to supply the government
with anything. But to everyone’s amazement, it was able to rack up from P8 to about
11.11 Billion of government supply contracts from March 2020 to July 2021. Aside from
nabbing billions in pesos of contracts, this young, underfunded and clearly unqualified
corporation went into impossibly high- speed deliveries of supposedly scant supplies-
even before a contract for delivery was signed- prompting us to ask whether the “scarcity”
was real or manufactured. This was clearly the cabal’s favorite supplier and was one of
the spokes in their twisted circle. They were allowed to deliver supplies even when no
contract yet was signed20. This company had cards stacked in its favor from the get-go;
PS-DBM even had goalposts adjusted in its market research to favor this company21. We
have also discovered in the hearings the fraud committed against the government and
20
Senate TSN Hearing No. 6 dated 13 Sep. 2021, page 64.
21
Senate TSN Hearing No. 10 30 Sep. 2021, page 187-188.
10
its people: expired shields, ghost deliveries, deliveries of about-to-expire tests, and
overpriced masks and PPEs. The company officials even had the temerity to buy hyper-
expensive cars for themselves early last year, or after many of the contracts have been
consummated (2 Porsches and a Lexus for Linconn Ong; a Porsche for Mohit Dargani;
and a Lamborghini purportedly a gift for Twinkle Dargani). Clearly, an ostentatious display
of lucre - or fruits of corruption - in a time of pandemic. This is Pharmally
Pharmaceutical Corporation (“Pharmally”).
15. His appointees committed fraud in the midst of a pandemic. The cast would
not be complete without the indispensable participation of a cabinet member who had
with him government funds that needed to be expended. The Secretary of Health
(“SOH”) moved approximately Forty-Two Billion Pesos in Philippine Currency (P42 billion)
from his department to PS-DBM22 to hasten the purchase of much-needed supplies
supposedly, upon the admitted- by- the- president order. even after the multi-billion peso
inter-agency transfer, DOH was purchasing supplies at considerably lower prices than
that of PS-DBM. One stark example happened on the same day, 25 March 2020, as a
Request for Quotation or “RFQ” for surgical masks was issued by DOH Central Office Bids
and Awards Committee (“COBAC”) to eleven (11) “suppliers with known technical, legal,
and financial capability to deliver based on previous transactions”23 while the PS-DBM
issued an RFQ to the undercapitalized Pharmally Pharmaceutical Corporation. On the one
hand, the DOH bid led to a unit price of P16.64 awarded to a fully Filipino corporation.
On the other hand, PS-DBM awarded Pharmally with its first (1st) contract for surgical
masks with a unit price of P27.72. In the beginning of the struggle against Covid 19, he
even set an inherently overpriced suggested retail price of PPEs at P2,00024; while others
22
First (1st) funds transfer from DOH to PS-DBM was on 27 March 2020, only two (2) days after PS-DBM issued a Request for Quotation to the
undercapitalized, unexperienced Pharmally Pharmaceutical Corporation.
23
DOH COBAC, Resolution No. 2020-197-A dated 31 March 2020, available at https://doh.gov.ph/sites/default/files/noa_ntp/RESO%20-
%20SURGICAL%20MASK%20-%20LINE%20ITEM%20NO.1%20-%20EP%20NO.%202020-006%20-
%20MEDICAL%20CENTER%20TRADING%20CORP..pdf (last accessed 20 January 2022).
24
https://drive.google.com/drive/u/1/folders/1NljYL57CT8Lh-yeMkKLzGbGjojAAihXJ
11
were procuring at about half the price. This public officer posed no serious questions
against the wisdom, method, and legality of the inter-agency transfer. This is Secretary
Francisco Duque III.
16. After all the major contracts had been consummated and paid for, the need
for protection, in case the plot is discovered, had become imperative. There had to be a
rear- guard action to cover the retreating (for the 6- year term of the president is about
to expire) conspirators from any legal peril that could surface later. A getaway plan must
be put into action. Thus, a fraternity brother of the president, a city-mate, a consultant
in his previous office when he was Vice-Mayor, a former Procurement Director at PS- DBM
who signed purchase documents of overpriced supplies for approval by PS-DBM’s Lao,
and one of a few trusted men of the president is now appointed Overall Deputy
Ombudsman- the second- highest anti- graft officer in the land. This is Warren Rex H.
Liong.
17. As the Senate investigation unfolded, revealing the participation of well-
placed officials in government, the President took the surprising position of undermining
the ongoing proceedings.
18. The President condemns the Consolidated Annual Audit Report for the
Calendar Year 2020 on the DOH issued by the Commission on Audit (“COA”) (collectively
“COA Report”, for brevity). The President assails COA and its leadership in a clear attempt
to confuse the people by stirring the populace against the agency with arbitrary
accusations.
19. When the Senate (a co-equal branch of government) investigations started
and persons close to him were linked to the anomaly, the President commenced
12
vociferous attacks against the institution and its members, when neither his
name nor participation were even mentioned. The President’s actions show an
abuse of authority, commits grave coercion, intimidation, and protects those committing
fraud in the time of pandemic. He tried ardently to deviate public attention from the
investigation, attempting to discredit a co-equal branch of the government. Duterte
statements: wag kayo umatend ng hearing. ; “Huwag ho kayong maniwala sa mga
imbestigasyon, imbestigasyon. Kita naman ninyo walang nangyayari. Puro lang, ‘we will
investigate, we will investigate,'” said Duterte, meeting with IATF, dated 27 August 202125
even as the Committee was discovering numerous and gargantuan government
malfeasance in the hearings it had conducted. He threatens the senators with harm.26
Cite example (dudurugin, bababuyin kita and add footnote)
20. The president issues a clearly unconstitutional memorandum27 - barring all
officials and employees of the executive department from attending the Blue Ribbon
hearings into this scandal. He does not generally prohibit appearances in the Senate, he
does not even forbid attendance in other Blue Ribbon hearings; but he has specially
proscribed attendance only in this specific matter.
21. Why, people may ask, this “special treatment” of those who disagree with
him? Why the vitriolic declarations against the Chairman and other senators. Why the,
over-the- top “defense” of his people and foreign friends?
25
https://www.rappler.com/nation/duterte-hits-senators-hearing-pandemic-spending/
26
“Pero 'pag na --- 'pag nawala ang respeto ko sa tao, anak ka ng p***** i** bantay ka, bababuyin talaga kita hanggang mamatay ka o hanggang
harapin mo ako, tapos papiliin kita kung ano ang gusto mo.” Talk to the People, 16 September 2021.
27
Executive Secretary, Memorandum dated 04 October 2021
13
II. TIMELINE OF THE PERTINENT FACTS
22. The eighteen (18) hearings28 of the Blue Ribbon Committee reveal that
the factual circumstances pertinent to truth on the malfeasance, misfeasance, and
nonfeasance on the use of the Philippines funds for COVID-19 pandemic relief and
rehabilitation efforts by unfaithful public servants and unconscionable private persons
using corporations as intermediaries for graft and corrupt practices stretches back to
a partnership of the President with a racketeer perfectly capable of plunder.
23. The factual circumstances relevant herein are tabularized below:
1999 President Rodrigo Roa Duterte (“President Duterte”) is

introduced to Michael Yang Hong Ming (“Michael Yang”),
Chinese citizen, by Maranao Deputy Mayor Randy Usman.29
Michael Yang was supposedly introduced as a Chinese foreign
national interested in staring a cellphone business through
various entities including the renowned Davao City Los Amigos
(“DCLA”) mall stores.
Prior to 2015 XIAMEN FUDESHENG GROUP Board of Directors included:
1. Michael Yang, as Chairman;

2. Zheng Bingqiang, as President;
3. Huang Wen-lai; and
4. Huang Tzu Yen, Singaporean national, board member
of Pharmally International Holding Co., and later
President of two (2) Philippine domestic corporations
named Pharmally Biological Company (PH), Inc. and
Pharmally Pharmaceutical Corporation.
28
from 18 August 2021 to 27 January 2022.
29
President Duterte, on 27 March 2019, said: “Ipinakilala sa akin na gusto magpasok dito, pabili sa mga cellphone, consign
lang maski 10 pesos a day…. Nagbaha ng cellphone na mura dito,” he said in Koronadal City. “Nagtayo siya ng DCLA mura at
may trabaho ang mga tao.” Jodesz Gavilan, Duterte and Michael Yang ‘s friendship throughout the years, Rappler, 14 Sep.
2021, available at https://www.rappler.com/newsbreak/iq/rodrigo-duterte-michael-yang-friendship-timeline/ (last accessed 29
Jan. 2022).
14
Later, three (3) out of the four (4) persons identified above
would be subject of an arrest warrant issued by the Republic
of Taiwan for several criminal offenses including stock
manipulation amounting to Seven Hundred Million New Taiwan
Dollars (NTD 700,000,000.00) or an amount equivalent to One
Billion and Two Hundred Million Pesos in Philippine Currency
(P1,200,000,000.00).
November or
December
2015
From the left: Michael Yang, President Duterte, and Zheng

Biqiuang in front of the receptionist desk of a company named
“Full Win”, which is an English translation of the
aforementioned company “XIAMEN FUDESHENG GROUP”.
A few months before the Philippines’ National Election of 2016

election period, President Duterte visits China with Michael
Yang, who at that time was already his friend for at least
sixteen (16) years.
Duterte declared his presidential candidacy, on November 21

that year. A week later, on November 27, his representative
submitted his certificate of candidacy for president.30
30
https://www.rappler.com/newsbreak/inside-track/226792-duterte-visited-michael-yang-china-around-time-declared-presidential-bid/
15
From the left: Michael Yang and President Duterte
February During the 2016 Philippine National Election Campaign,

2016 President Duterte and Senator Christopher Lawrence “Bong”
T. Go are joined by volunteers including election lawyers:
1. Atty. Warren Rex H. Liong a long-time consultant-

confidante and President Duterte’s legal consultant when
the later was still a Vice-Mayor of Davao City;
2. Atty. Anderson Lo, currently shortlisted for the position

of Deputy Ombudsman for Mindanao31 and whose wife
the Honorable Judge Lo was President Duterte’s first (1st)
Judiciary appointee32 ; and
3. Atty. Christopher Lloyd A. Lao, who would in 2016 be

appointed as an Undersecretary with the Office of ,the
Special Assistant to the President (“SAP”) where he was
embroiled in a frigates deal controversy33, in 2017 be
appointed Chief Executive Officer (“CEO”) and
Commissioner of the Housing and Land Use Regulatory
Board (“HLURB”) where he faced complaints of
extortion34, and in 2020 be appointed as Officer-in-
Charge (“OIC”) of PS-DBM where Usec. Lao would be
tagged as having granted the distinction to the
undercapitalized and inexperienced Pharmally
Pharmaceutical Corporation as PS-DBM’s top pandemic
supplies contract awardee.
31
https://www.ombudsman.gov.ph/omb-has-full-trust-and-confidence-on-nominees-for-do-
mindanao/
32
Who wants the Ombudsman top posts? The Davao boys
33
Navy frigate controversy resurfaces as ex-DBM exec Lao's past raised in House hearing | Inquirer
News
34
Lao accused of extortion racket as housing exec
16
2016-2017 Lloyd Christopher Lao
Undersecretary, Presidential Management Staff Supervisor:
Special Assistant to the President Christopher Lawrence
“Bong” Go
October 2016 In October 2016, President Duterte conducted a state visit to

the People’s Republic of China which the latter’s President Xi
Jinping described as a “milestone” visit.35 President Duterte;s
schedule and official state entourage notably included Michael
Yang.
January 10, Chinese businessmen flock to Malacanang, Kitskon Kho

2017 Michael Yang, etc.
March 17, Pharmally Executives meeting with the President in Panacan,
35
https://www.bbc.com/news/world-asia-37700409
17
2017 Davao
Attendees:
1. Michael Yang
2. Linconn Ong
3. Huang Wen Lai
4. Huang Tzu Yen
5. Allan Lim
6. Bong Go
7. PRRD
8. DOH Abdullah Dumama
9. FDA Nela Charade Puno
10. Lin Weixiong
September
2017
18
UNKNOWN
DATES
Michael Yang, Cong. Pido Garbin, Sen. Bong Go, Cong. Mikee
Romero, Cong. Alan Peter Cayetano, Scott Lanete, FLH, Mark
Sambar, Irwin Tieng, Cong. Lord Allan Velasco
19
PRRD and Yang taking “shots”
PRRD, Michael Yang, Sen. Bong Go, Former Chinese

Ambassador Zhao Jianhua
20
PRRD ang Michael Yang and Bong Go
January 1, Contract for Expert and/or Technical Services. Yang was

2018 appointed as Presidential adviser in 2018 despite being a
foreigner and contrary to the requirements of the
Government Procurement Reform Act.
21
22
August 31, Malacanang, through Executive Secretary Medialdea, renews
2018 Contract for Expert and/or Technical Services
23
24
September DUTERTE AGAINST COA
16, 2018 In September 2018:
"Sino'ng taga-COA dito? Ihulog mo na sa hagdan para 'di mag-
report" said Duterte during a meeting with his Cabinet and
Marcos in Laoag City.
January 8, DUTERTE AGAINST COA

2019 In January 2019: Betrayal of public trust, intimidation
"Ah putangina 'yang COA na 'yan. Letse kasi yung COA,
everytime may mali talaga. Ano ba naman itong COA na ito?
Kung magkidnap tayo ng taga-COA, lagay natin, i-torture natin
dito, 'tangina," said Duterte on Tuesday, January 8, 2019.
September Pharmally Pharmaceutical registration with SEC.

2019 - Php 625,000 in paid up capital
- Php 25,550 in net loss
Incorporated September 4, 2019
Acme Pinnacle Enterprises Co. (Partnership) -

September 19, 2019
Evermore Marketing and Supply Co. (Partnership) -

September 17, 2019
25
December 31, On 31 December 2019, WHO was informed of cases of
2019 pneumonia of unknown cause in Wuhan City, China. A novel
coronavirus was identified as the cause by Chinese
authorities on 7 January 2020 and was temporarily named
“2019-nCoV”.
January 2, Lloyd Christopher Lao appointment as PS-DBM OIC

2020
January 30, Philippines confirms the first case of Novel Coronavirus

2020
February Warren Lex H. Liong appointment as Director IV in PS-DBM.

2020 Lloyd Christopher Lao was his Supervisor.
March 16, Presidential Proclamation No. 929 (S. 2020) declaring state of
2020 calamity throughout the PH for a period of 6 months due to
COVID-19
March 16, The Government Procurement Policy Board released a

2020 resolution incorporating face masks and PPE into common
use supplies.
March 24, Linconn Ong of Pharmally Pharmaceutical wrote a Letter of

2020 Intent to Lloyd Lao to participate in the bid for the 500,000
surgical masks.
March 25, Krizle Grace Mago (Pharmally Pharmaceutical Corp.) received

2020 a Request for Quotation for 500,000 pcs. Surgical Masks at
Php 28 per piece worth Php 8,000,000 from PS-DBM (1st
2:26 PM
contract)
Pharmally 1st contract:

AMP-ECP-NO. 20-03-13 (Emergency Procurement)
Issue: Why is the Request for Quotation priced at Php

8,000,000 but when you compute 500,000 masks for Php 28
a piece, it should be amounting to Php 14,000,000?
March 25, Pharmally delivered 500,000 masks to PS-DBM Warehouse in

2020 Paco, Manila. (1st contract)
Around 5:00
Issue: Who in their right mind would deliver without a
PM Purchase Order?
25 March DOH Central Office Bids and Awards Committee (“COBAC”)

2020 sent RFQs to 11 “suppliers with known technical,
26
legal, and financial capability to deliver based on
previous transactions.”
Items for procurement: 3 million face masks

[Later awarded to MCTC at P16.64 per piece]
If DOH COBAC did it properly and with appropriate due

diligence, then why not PS-DBM?
Duterte didn’t do anything about it.
March 26, Krizle Grace Mago (Pharmally Pharmaceutical Corp.) replied

2020 to the Request for Quotation. (1st contract)
1:19 PM
March 27, First transfer of funds from DOH to PS-DBM.

2020 Php 1,800,000,000
Personal Protective Equipment (PPE) set (8/10 sets)
Quantity: 900,000
Unit price: Php 2,000
March 31, Second transfer of funds from DOH to PS-DBM.

2020 Personal Protective Equipment (PPE) set (8/10 sets)
Php 84,964,000
Quantity: 42,482
Unit price: Php 2,000
April 6, 2020 PO20-00176-CSE (1st contract)

Purchase Order issued to Pharmally for the 500,000 pcs
Surgical Masks worth Php 13.86 M at Php 27.72 pesos per
piece.
April 13, 2020 Pharmally - Request for Quotation (2nd contract)

2,400,000 pcs Surgical Masks
Php 54,000,000
April 14, 2020 Reply to Request for Quotation (2nd contract)

2,400,000 pcs Surgical Masks
Php 54,000,000
April 14, 2020 Notice of Award and Contract Agreement (2nd contract)
Surgical Masks
Unit price: Php 22.50
Quantity: 2,400,000
Total Price: Php 54,000,000
April 14, 2020 PO20-181 CSE (2nd contract)

Purchase Order issued to Pharmally
27
Product: Surgical Mask
Quantity: 2.4 Million
Unit Price: Php 22.5/pc
April 15, 2020 Pharmally allegedly received their payment for the 500,000
face masks (PO20-00176-CSE) (1st contract)
Issue: We do not have the copy of the payment receipt.
April 15, 2020 Pharmally received the Purchase Order for the 2,4000,000
pcs surgical masks. (2nd contract)
April 16, 2020 Date of Delivery and Inspection Date

PO20-181 CSE (2nd contract)
Quantity: 2,400,000
Amount:Php 54,000,000
Inspected/Evaluated by:
Noralyn D. Salvador
PMO-in-charge
Jorge L. Mendoza III

OIC, Inspection Division
April 17, 2020 Third transfer of funds from DOH to PS-DBM.

Various test kits
Total price: Php 1,912,373,520
April 20, 2020 PO20-00189-CSE (3rd contract)

PS-DBM issued Purchase Order No. PO20-00189
Product: Surgical Mask
Quantity: 10 Million
Unit Price: Php 22.oo/pc
April 20, 2020 PO20-00189-CSE (3rd contract)

PO received by Pharmally - Mohit Dargani
CONTINUATION (Pharmally 2020 transactions):

CONTRAC INTERVAL PURCHA PRODUCT UNIT QTY TOTAL AMOUNT
T DATE SE PRICE
ORDER
April 20, 6 days PO20- Surgical Php 10,000,000 220,000,000

2020 00189 Masks 22.00 pcs
CSE
28
April 23, 3 days PO20- BGI Real Php 8,000 kits 600,000,000
2020 00210 Time 75,000
CSE Fluorescent
RT-PCR Kit
April 23, Same Day PO20- A*Star Php 2,000 kits 688,000,000
2020 00211 Fortitude 344,000
CSE RT-PCR
Test
April 23, Same Day PO20- KN95 Masks Php 100 3,000,000 300,000,000
2020 00214 pcs
CSE
May 8, 15 days PO20- Surgical Php 288 10,000 pcs 2,880,000

2020 00229 Gowns
CSE
May 8, Same Day PO20- PPE Php 2,000,000 3,820,000,000

2020 00230 1,910 sets
CSE
June 9, 1 month PO20- BGI Real Php 41,400 kits 2,877,300,000

2020 00286 Time 69,500
CSE Fluorescent
RT-PCR Kit
June 10, 1 day PO20- MGIEasy Php 312 units 245,846,016

2020 00298 Magnetic 787,968
CSE Beads Virus
DNA/RNA
Extraction
TOTAL PHARMALLY CONTRACTS in 2020: Php 8,821,886,016
AND THEN:
June 18, 2020 Business Beyond Limits OPC is now registered with SEC.
Single stockholder: Sophia Custodio (Mohit Dargani’s girlfriend)
First Nominee: Krizle Grace Mago
Second Nominee: Anna Marie Chua
NOTE: Business Beyond Limits and Pharmally Pharmaceutical

Corporation share the same address in their SEC registrations.
August 27, 2020 Pharmally lawyers file lawsuit against Deloitte auditors
Lawyers for Pharmally International Holding Co yesterday filed
29
lawsuits against two Deloitte & Touche Taiwan auditors for
breach of trust and submitting false financial reports.
Pharmally executives are being probed over alleged securities

fraud totaling about NT$1.5 billion (US$50.82 million).
!"#$%&'#'()*+,)#*-((.*'))"(/*,0*'0#(&0,#'%0,+*-,&&,0#*1%&*
2$,&3,++4*5$,'&3,0*6",07*8(09+,'*:;<=>?*,+)%*.0%-0*,)*
@%04*6",07?*%A(&*,0*,++(7(/*'++(7,+*#&,0)1(&*%1*B@CDEE*3'++'%0*
'0#%*$')*F(&)%0,+*G,0.*,55%"0#)H
Investigators accused Huang of colluding with Chinese

businesspeople to falsify accounts and financial statements in
one of the largest securities fraud cases in the past few years
involving a Taiwan Stock Exchange (TWSE)-listed firm.
https://www.taipeitimes.com/News/taiwan/archives/2020/08/2
7/2003742368
October 2020 Lloyd Christopher Lao backed out from his application as
Overall Deputy Ombudsman
November 2020 Warren Lex H. Liong was appointed as Overall Deputy

Ombudsman.
CONTINUATION (Pharmally 2021 transactions):
CONTRACT PURCHASE PRODUCT UNIT QTY TOTAL

DATE ORDER PRICE AMOUNT
May 19, PO21-00197 CSE PPE Php 980 517,613 507,260,740

2021 sets
June 2, 2021 PO21-00233 CSE BGI Real Php 45,550 17,000 774,350,000
Time kits
Fluorescent
RT-PCR Kit
July 26, PO21-00347 BGI Real Php 37,450 26,970 1,010,026,500

2021 Time kits
Fluorescent
RT-PCR Kit
TOTAL PHARMALLY CONTRACTS 2021: Php 2,291,637,240
30
TOTAL PHARMALLY CONTRACTS APRIL 2020-JULY 2021: Php 11,113,523,256
WHILE:
May 27, 2021 DOH Central Office Bids and Awards Committee Resolution No.
2021-262
Business Beyond Limits OPC Joint Venture with Pharmally for

Php 37.9 Million worth of Face Shields
June 2, 2021 Lloyd Christopher Lao resigned from PSDBM.
July 2021 COA report was released

(last week)
August 17, 2021 DUTERTE AGAINST COA
"Stop that flagging, god damn it! You make a report, do not flag
and do not publish it because it will condemn the agency or the
person you are flagging.... What you are doing is f-l-o-g-g-i-ng,"
railed Duterte.
"Huwag ka muna mag audit hanggang hindi pa natapos ang

trabaho ko. 'Yan lang naman sana ang hinihingi natin. Do not
conduct an audit on our work na ongoing pa kasi dino-document
pa 'yan," said Duterte
https://www.rappler.com/nation/duterte-insists-no-doh-
corruption-refuses-fire-duque
August 27, 2021 DUTERTE AGAINST SENATORS
"Huwag ho kayong maniwala sa mga imbestigasyon,

imbestigasyon. Kita naman ninyo walang nangyayari. Puro lang,
'we will investigate, we will invesigate,'" said Duterte.
"Kung pakinggan mo 'yang mga ibang senador diyan, mayroon

talagang masabi. After an investigation, one or two or three
days, then your hearing, wala na. Walang rekomendasyon,
31
walang dinemanda, walang napreso, puro postura lang," added
the President.
https://www.rappler.com/nation/duterte-hits-senators-hearing-
pandemic-spending
August 31, 2021 Duterte admits he ordered Duque to skip bidding on PPE
purchase
“Ako ang nag-utos kay Duque. Noong nandito kami, ginanun ko

‘I want it done immediately’ sabi ko sa kanya it’s not a month,
it’s one day, two days ka lang.’ Ako ang nagsabi sa kaniya ‘I am
sure there is a law which would exempt you from bidding.’
Madalian ito, pandemic eh,” Duterte said in his public address
aired Tuesday morning.
“Ako ang nag-utos, ako ipakulong nila,” he added.

Source: https://newsinfo.inquirer.net/1481126/duterte-says-
he-is-the-one-who-ordered-to-skip-bidding-on-ppe-
procurement-ako-ipakulong-nila
August 31, 2021 Duterte defends appointment of Davao people in gov’t36
“For the senators, do not question who I appoint to the agencies

in the executive branch. I am the sole appointing authority,” he
said in a public address aired on Tuesday morning.
“You do not have the ascendancy to question this executive

prerogative. Ano masama kung magbayad ako ng utang [na
loob]? When was elected, they applied. Of course, I accepted
their application,” he added.
“I know them and I trust them and just like I trust all other
people appointed from Davao City,” he continued.
“Itong fraternity brothers kung sabihin mo may na-COA, may

nakita kayo na mali, ipakulong ninyo. Wala sa usapan ‘yung
pwesto sila magnakaw, ipakulong ninyo,” he said.
Source:
36
Duterte defends appointment of Davao people in gov't | Inquirer News
32
August 31, 2021 Duterte warns of ‘crisis’ if Senate would be ‘rude’ to
Cabinet during hearing37
“You would create a crisis here. Pag ganyang ang bisyo ninyo, I
will not allow any Cabinet member to go to Congress to testify.
Gawain na ninyo ang gusto niyo, kung ano ang gawain ninyo,”
Duterte mulls barring Cabinet execs from testifying

before congressional probes38
“Kung ganoon ang treatment ninyo, sinabi ko na noon, that’s

why I told the military also, ’pag kayo binabastos nang ganoong
klaseng questioning, tumindig kayo,”
"Kung sabihin i-contempt kayo, sige… in 24 hours, mag-isip ako

paano kita kunin,"
37
Duterte warns of 'crisis' if Senate would be 'rude' to Cabinet during hearing | Inquirer News
38
Duterte mulls barring Cabinet execs from testifying before congressional probes | GMA News
Online
33
III. DISCUSSION
The Senate Blue Ribbon Committee’s proceedings have uncovered reprehensible
fraud, waste, and abuse in the Philippines’ pandemic recovery. Unearthed so far are
merely the apices of atrocious syndicated corruption; its roots bury deep and wide
across the Philippines’ political, social, economic, and cultural spaces. It constrains this
Committee to continue its investigation in aid of legislation into a grand conspiracy
among public officials and private persons such as the Pharmally Pharmaceutical
Corporation (“Pharmally”) and its officers and employees; foreign nationalswith
alleged ties to heinous crimes, including Huang Tzu Yen (Singaporean), Yang Hong
Ming or “Michael Yang” (Chinese), and Lin Weixiong; sworn officials of the
Procurement Service-Department of Budget and Management (“PS-DBM”) such as its
former Office-in-Charge (“OIC”) Undersecretary (“Usec.”) Lloyd Christopher A. Lao;
Atty. Warren Rex H. Liong (then at the PS-DBM but now appointed as Overall Deputy
Ombudsman); and no less than the highest officials of the executive branch of the
national government.
On 27 July 2021, the Commission on Audit (COA) released its Department of
Health (DOH) Audit for the year 2020. Among many of its findings we will start to
focus here, in our Partial Report, on the transfer by the DOH of some P42 Billion to
the Procurement Service- Department of Budget and Management (PS-DBM) of the
former’s allotted budget for the purchase of supplies and equipment targeted for use
against the raging pandemic- Covid-19. We will release a more exhaustive and
comprehensive Report in the days to come.
34
In the exercise of the Senate’s oversight functions over the Executive
Department’s utilization of legislated budgets, the Chairman of your Committee on
Accountability of Public Officers and Investigations,
1. Motu proprio, set for hearings on 18 August 2021 the COA

Report, in order to look into whether the funds allotted to the
DOH were properly utilized and whether the purchases made
by the PS-DBM on DOH’s behalf were properly and legally
undertaken, in aid of legislation;
Proposed Senate Resolutions were filed by other Senators:
1. P.S. RES. NO. 858 (“RESOLUTION DIRECTING THE SENATE

COMMITTEE OF THE WHOLE ON THE VACCINATION PROGRAM TO
CONDUCT AN INQUIRY ON THE PROCUREMENT OF COVID-19
VACCINES BY LOCAL GOVERNMENT UNITS AND THE PRIVATE SECTOR
THROUGH THE MULTI-PARTY AGREEMENTS, WITH THE END IN VIEW
OF RAMPING UP VACCINATION IN THE RURAL AREA AND IN THE
PRIVATE SECTOR, AND ACHIEVING HERD IMMUNITY AGAINST COVID-
19 FOR THE COUNTRY”) by Senator Juan Miguel “Migz” F. Zubiri;
2. P.S. RES. NO. 859 (“RESOLUTION DIRECTING THE APPROPRIATE
SENATE COMMITTEE TO CONDUCT AN INQUIRY, IN AID OF
LEGISLATION, ON THE FINDINGS OF COMMISSION ON AUDIT [COA]
REPORT ON THE DEPARTMENT OF HEALTH [DOH] ON THE REPORTED
UNSPENT FUNDS, MISSTATEMENTS, IRREGULARITIES AND
DEFICIENCIES, WITH THE END VIEW OF ADDRESSING RECURRENT
ISSUES THAT HAS PLAGUED ITS SERVICES, AS WELL AS THE
PERSISTENT FAULTS AND LAPSES THAT GIVE RISE TO WASTAGE EVEN
AMIDST TIMES OF SCARCITY AND SHORTAGE, AND HOLDING
ACCOUNTABLE IDENTIFYING AND HOLDING ACCOUNTABLE THOSE
RESPONSIBLE FOR THE SAME”) by Senator Leila M. De Lima;
SENATE COMMITTEE TO CONDUCT AN INVESTIGATION IN AID OF
LEGISLATION ON THE PAYMENT CLAIMS ISSUES BETWEEN
PHILHEALTH AND PRIVATE HOSPITALS WITH THE END IN VIEW OF
ENSURING UNINTERRUPTED HEALTH CARE AND SOCIAL PROTECTION
FOR FILIPINOS”) by Senator Risa Hontiveros; and
35
SENATE COMMITTEE TO CONDUCT AN INQUIRY, IN AID OF
LEGISLATION, ON THE NON-PAYMENT OF SPECIAL RISK ALLOWANCE
[SRA] AND OTHER BENEFITS TO HEALTH CARE WORKERS, WITH THE
END IN VIEW OF IDENTIFYING MEASURES NECESSARY TO EXPEDITE
THE SYSTEM FOR DISBURSING THE SRA AND OTHER BENEFITS TO
WHICH HEALTH CARE WORKERS ARE ENTITLED TO RECEIVE AS
MANDATED BY LAW”) by Senator Leila M. De Lima
All told, eighteen (18) hearings have been conducted to date:
1st: August 18, 2021

2nd: August 25, 2021
3rd: August 27, 2021
4th: September 7, 2021
11th: October 5, 2021
12th: October 28, 2021
14th: November 4, 2021
15th: November 26. 2021
16th: December 3, 2021
17th: December 21, 2021
18th: January 27, 2022
At the onset, the investigation, in aid of legislation, already faced logistical
problems: the first hearing was scheduled to be held during a recess; access to the
Senate building was difficult given the health protocols imposed; we faced the
prospect of voluminous records- in the thousands of pages- to procure, secure, and
examine; and the need to invite people in the scores to serve as resource persons- all
in the time of a still-blazing pandemic
36
But, to our shock and utter disbelief, no greater obstruction to the pursuit of
truth and justice was put in place by no less than the head of the executive
department, the president of the Republic.
The president’s vigorous attacks on the “investigators” and farcical, if not shrill,
defense of the malefactors came swift and hard.
At the beginning of every term, an elected President takes an oath:
“I solemnly swear [or affirm] that I will faithfully and conscientiously

fulfill my duties as President of the Philippines, preserve and defend
its Constitution, execute its laws, do justice to every man, and
consecrate myself to the service of the Nation.”39
But instead of living up to that solemn promise, his first reaction was a display
of a long- festering animus against the COA, an independent Constitutional
Commission:
August 17, 2021:

"Stop that flagging, god damn it! You make a report, do not flag and do not publish it
because it will condemn the agency or the person you are flagging.... What you are
doing is f-l-o-g-g-i-n-g," railed Duterte.
"Huwag ka muna mag audit hanggang hindi pa natapos ang trabaho ko. 'Yan lang
naman sana ang hinihingi natin. Do not conduct an audit on our work na ongoing pa
kasi dino-document pa 'yan," said Duterte,
In January 2019:
"Ah putangina 'yang COA na 'yan. Letse kasi yung COA, everytime may mali talaga.
Ano ba naman itong COA na ito? Kung magkidnap tayo ng taga-COA, lagay natin, i-
torture natin dito, 'tangina," said Duterte on Tuesday, January 8, 2019.
39
1987 Philippine Constitution, Article VI (Executive Department), Section 5.
37
In September 2018:
"Sino'ng taga-COA dito? Ihulog mo na sa hagdan para 'di mag-report" said Duterte
during a meeting with his Cabinet and Marcos in Laoag City.
As if this was not sufficiently irresponsible, he sets his sights upon the Senate
and the Senators who were participating in the hearings:
"Huwag ho kayong maniwala sa mga imbestigasyon, imbestigasyon. Kita naman ninyo

walang nangyayari. Puro lang, 'we will investigate, we will investigate,'" said Duterte.
"Kung pakinggan mo 'yang mga ibang senador diyan, mayroon talagang masabi. After
an investigation, one or two or three days, then your hearing, wala na. Walang
rekomendasyon, walang dinemanda, walang napreso, puro postura lang," added the
President.
Not contented enough, he goes into ad hominem tirades directed at his now
favorite whipping boys and girls- those who attend and raise questions during the
hearings.
The President, acting as self-appointed lead defense counsel, and without a
modicum of inquiry, absolves all possible malefactors by sweepingly declaring that the
purchases by PS-DBM and DOH were all above board and that those were not tainted
by graft and corruption - even as the hearings were beginning to discover shocking
anomalies in the purchase of supplies for use against Covid-19, as well as in the
changing of expiry dates for masks supplied by Pharmally.
He places himself and all the president’s men above accountability. He orders
the drafting of a Memorandum (Memorandum of the Executive Secretary dated
October 4, 2021) - patently unconstitutional and contrary to prevailing
38
pronouncements of the Supreme Court - to ban the attendance of cabinet members
in the hearings, he orders “his” police and military not only to deny assistance, but to
disregard any request from the Senate. In every taped cabinet meeting or briefing, he
devotes a considerable amount of time to attacking the committee Chairman, the
Senate and its current investigation. Findings of fraud, waste, abuse, and lies.
A. Lutong Macau
Pharmally is undoubtedly the favorite supplier in these parts. Organized only in
September of 2019, with a measly paid-up capital of Php 625,000, the company and
its partners garnered contracts with PS-DBM in the mind- boggling billions of pesos.
It even set the world record for fastest delivery in less than three (3) hours.
Why, in the first place, was it sent a Request for Quotation by PS-DBM, when
it was a new company at that time, 6 months old to be exact, no contractual
experience with either government or the private sector, zero track record, an
infinitesimal capital is not a mystery anymore. It had the connections: it was backed
up by powerful people, its purchase payments guaranteed, it had been referred to
overseas suppliers by the presidential friend and former presidential adviser and
Chinese national – Michael Yang AKA Yang Hong Ming, and as we have discovered
later, financed by the latter.
PHARMALLY Transactions with PS-DBM
39
DATE PURCHASE ITEM UNIT QUANTITY TOTAL
ORDER PRICE CONTRACT
AMOUNT
April 6, PO20-00176 Surgical Masks Php 27.72 500,000 pcs 13,860,000

2020 CSE
April 14, PO20-00186 Surgical Masks Php 22.50 2,400,000 54,000,000

2020 CSE pcs
April 20, PO20-00189 Surgical Masks Php 22.00 10,000,000 220,000,000

2020 CSE pcs
April 23, PO20-00210 BGI Real Time Php 75,000 8,000 kits 600,000,000
2020 CSE Fluorescent RT-
PCR Kit
April 23, PO20-00211 A*Star Fortitude Php 2,000 kits 688,000,000

2020 CSE RT-PCR Test 344,000
April 23, PO20-00214 KN95 Masks Php 100 3,000,000 300,000,000

2020 CSE pcs
May 8, PO20-00229 Surgical Gowns Php 288 10,000 pcs 2,880,000

2020 CSE
May 8, PO20-00230 PPE Php 1,910 2,000,000 3,820,000,00

2020 CSE sets 0
June 9, PO20-00286 BGI Real Time Php 69,500 41,400 kits 2,877,300,00
2020 CSE Fluorescent RT- 0
PCR Kit
June 10, PO20-00298 MGIEasy Php 312 units 245,846,016

2020 CSE Magnetic Beads 787,968
Virus DNA/RNA
Extraction
(Lloyd Lao) TOTAL PHARMALLY CONTRACTS 2020: Php 8,821,886,016
May 19, PO21-00197 PPE Php 980 517,613 507,260,740

2021 CSE sets
June 2, PO21-00233 BGI Real Time Php 45,550 17,000 kits 774,350,000
2021 CSE Fluorescent RT-
PCR Kit
July 26, PO21-00347 BGI Real Time Php 37,450 26,970 kits 1,010,026,50
2021 Fluorescent RT- 0
PCR Kit
40
(Jasonmer Uayan) TOTAL PHARMALLY CONTRACTS 2021: Php 2,291,637,240
TOTAL PHARMALLY CONTRACTS APRIL 2020-JULY 2021: Php

11,113,523,256
There was to Pharmally’s great advantage, efforts done by PS-DBM to ensure
that it won the contracts: Price Monitor Surveys were manipulated and approved after
a Purchase Order was granted to Pharmally. In short, PS-DBM in the persons of Panti,
Liong and Lao had already chosen Pharmally to be the contractor before the agency
even “canvassed” or conducted the market survey.
PS-DBM also utilized old and outdated proposals of other contractors to make
it appear that Pharmally had the lowest offer, as could be seen in a Price
Monitor/Market Survey Report. With the eventual stabilization of prices, it was just
natural that Pharmally’s bids/offers/price proposals would go lower than anyone else’s.
It had supporters inside to back up its bids, and it had people who gave it advanced
information as to what the other corporations were bidding for, and for how much.
B. Discovery of Various Forms of Fraud
41
The Commission on Audit’s (“COA”) Consolidated Annual Audit Report for the Calendar
Year 2020 on the Department of Health (“COA Report”, for brevity)40 indicates that,
despite opportunities for management to comment on initial findings, there are facts
indicative of fraud, waste, and abuse of public funds and assets that were of crucial
importance at a time of unparalleled public health emergency brought about by the
Covid-19 Pandemic.
1. Substandard Delivery / Expired supplies
Pharmally Pharmaceutical Corporation (“Pharmally”)’s Regulatory Officer, Krizel Mago,
during the ninth (9th) hearing of the Blue Ribbon Committee on 21 September 2021,
confessed twice under oath that it was her belief that Pharmally defrauded the
National Government.
Transcript of stenographic notes show the exchange between her and the Blue Ribbon
Committee Chairperson, as follows:
“THE CHAIRPERSON. So, you were swindling the government? Ms. Mago?
MS. MAGO. I believe so, Mr. Chairman.
THE CHAIRPERSON. Excuse me?
MS. MAGO. I believe that is the case, Mr. Chairman.”41
40
COA Consolidated Annual Audit Report for the Calendar Year 2020 on the Department of Health, 11 August 2021, available at
https://www.coa.gov.ph/index.php/national-government-agencies/2020/category/9305-department-of-health?download=48644:department-of-
health (last accessed 30 January 2022).
41
Senate TSN Hearing No. 9 dated 24 Sep. 2021, page 61.
42
Pharmally delivered A*Star Fortitude testing kits to DOH with a shelf life of only
2 months.
TSN September 21, 2021:
SEN. PANGILINAN. Yes, on those two points, Mr. Chair. We were able
to establish in the last hearing that, according to the DOH, the SRP for
masks was meant for retail, not for wholesale purchases. The Secretary
said that. And yet the DBM-PS used the SRP as the basis to do wholesale
purchases. And that is why overpriced, Mr. President, Mr. Chairman.
Number two, as for Secretary Duque, do you confirm that you had a
number of expired testing kits that were delivered by Pharmally. Because
six months iyong expiry date, maraming hindi nagamit at marami ang
nag-expire.
MR. DUQUE. No, Mr. Chairman. I am not aware of that. If I may just…
SEN. PANGILINAN. Mr. Secretary, I will make you aware of it. A letter
dated 7 December 2020, signed by assistant secretary of Health, Nestor
Santiago. This was directed to Atty. Lloyd Christopher Lao, and the DOH
was requesting a rescheduling of the delivery of Pharmally testing kits
because the test kits that were delivered expired. Hindi nagamit.
THE CHAIRPERSON. What date was that, Senator Pangilinan?
SEN. PANGILINAN. December 2020. December 7, 2020. It was signed

by Nestor Santiago Jr., MD, MPHS. And let me quote again…
xxx
SEN. PANGILINAN. Well, yes. Okay. You signed it. If I may just
continue before he sees the letter? And I quote, “Currently the whole
laboratory network is consuming an average of 1,000 to 1,500 testing
kits per month, and the demand may not increase based on our forecast.
As of this writing we still have enough BGI testing kits until March. The
proposed delivery schedule,” because they wanted a new delivery
schedule precisely because marami na silang testing kits, “will prevent
the repeat of the past scenario where a large number of stored BGI kits
expired.” Because the DOH agreed, in violation of their own technical
specifications that it has to be 24 to 36 months. The DBMPS, together
with the DOH, in violation of the technical specifications they themselves
43
provided, accepted Pharmally’s testing kits that were due to expire after
six months. And the other point Mr. Chair, is that they paid in full. They
paid for testing kits that specifications provided that it should be 24 to
36 months. They paid in full for testing kits that were due to expire in six
months. Industry insiders would say when it is expiring in six months,
you have as much as 25 percent discount for these nearly-expiring
testing kits delivered by Pharmally. And yet, the full amount was paid.
That is overpriced, Mr. President. Not just overpriced, that is also using
equipment that is substandard, or at least lacking in the necessary shelf
life for us to be able to effectively deal with COVID, avoid deaths and
sickness
2. Ghost Deliveries / Non-Delivery
Jorge Mendoza, an inspector at the PS-DBM admitted to signing delivery and
inspection reports even while the supplies to be delivered were still in China,
thousands of miles away. This, supposedly so the paperwork for payment would be
facilitated and accomplished faster. He admitted to not seeing some deliveries, but
signed receipt and inspection reports nonetheless.
Such candid witness testimony is consistent with the findings from pages 125 to
127, paragraphs 114 to 153 of the COA Report, where COA concluded that “these
conditions coupled with leniency of the CO and OUs in complying with pertinent rules
have caused doubt on the existence of the said assets and exposes them to loss or
wastage.”42
42
Id.
44
“Wala pang delivery but we were advised or instructed to prepare the inspection
document. Considering nga po na it will be an attachment for China — assurance to
China suppliers na sila po ay babayaran once the shipment or iyong PPEs will arrive
sa Pilipinas.”43 said Jorge Mendoza, an inspection chief at the PS-DBM.
Mr. Mendoza admitted to not seeing, and thus not inspecting, the supplies
personally. Instead, he just relied on documents and followed the instructions to him
to simply sign the requisite documents to make it appear that supplies had actually
arrived, been inspected, and delivered to the PS-DBM when in fact they were allegedly
still en route from China. He also confirmed that he just relied on someone else to
inspect the supplies.
TSN September 13, 2021:
SEN. PANGILINAN. Okay. Were you ever asked to sign any document
even before inspection was made?
MR. MENDOZA. There was this instance po, Your Honor, wherein we
have to—during pandemic time, there was no talagang supply of PPEs.
So, we have to resort to China. Opo. So, again, nagano po—pasensya na
po, medyo—
SEN. PANGILINAN. Okay lang. Take your time. Sige.
MR. MENDOZA. Wala pang delivery but we were advised or instructed

to prepare the inspection document. Considering nga po na it will be an
attachment for the China—assurance to China suppliers na sila po ay
babayaran once the shipment or iyong PPEs will arrive sa Pilipinas
SEN. PANGILINAN. In other words, you were instructed by whom to

sign inspection reports? Na-instruct kayo na pirmahan ninyo iyong
43
Jorge Mendoza, Senate TSN Hearing No. 6 dated 13 Sep. 2021 p.186.
45
inspection report kahit hindi ninyo nakikita iyong produkto kasi hindi
madi-deliver? Tama ba iyon?
MR. MENDOZA. Ganoon po, Your Honor.
SEN. PANGILINAN. So, who instructed you?
MR. MENDOZA. Management po, Your Honor.
SEN. PANGILINAN. Who in management?
MR. MENDOZA. Actually, Your Honor, it was the one who advised me
to prepare or to sign the inspection report is iyong amin sa finance
considering they will be the one to pay.
SEN. PANGILINAN. So, who in finance instructed you?
MR. MENDOZA. Opo. It was a meeting then with former accounting

chief, Raul Catalan.
It bears emphasis that the Senate hearings also noted the high number of PS-
DBM employees without security of tenure. Differently stated, at a time of pandemic
when economic security of a family is tested against the Code of Ethics required of all
public servants, casual employees are the ones with a sword of Damocles hanging
over their heads.
It was discovered, too, that Acme and Evermore, alleged suppliers of Pharmally
could not be found. The addresses the companies provided the SEC were fake and/or
non-existent; the members of the partnerships: Melanie P. Busime and Roxane B.
Serintas for Acme; Theresa B. Naindreand Sylvia P. Gerangue for Evermore also had
addresses that were either fake or non- existent giving rise to a well- founded belief
that the phantom companies also supplied phantom deliveries.
46
These are but a representative of the blatant anomalies that characterized the
administration’s efforts to secure supplies for use against the pandemic. The other
anomalies and illegal acts will be reported out in a Final Committee Report to be
released by this Committee in the very near future. There is still so much to discover,
and so many conclusions that could be reached. We seek patience from the people.
3. Tampering of Certificates by Pharmally
A video was presented showing Pharmally’s warehouse staff testifying that he
was ordered by Krizle Grace Mago to replace the expiration date certificates on
Pharmally’s face shields.
The warehouseman also said that the products delivered by Pharmally were
substandard. Kahit yupi na yung face shield nirerepack, ke marumi, kasi natutuluan
ng tubig sa warehouse, yung iba naninilaw na yung foam at nangingitim na,
ipinapadeliver pa rin.
Krizzle Grace Mago of Pharmally admitted that she gave the order upon
instructions of Mr. Mohit Dargani and that she is just an employee and as an employee,
she always follows orders of his superiors.
MS. MAGO. Mr. Chairman, I would have to watch the video again
because I believe there are a few or even more allegations that I’m not
sure if I heard it correctly. But then, with regard to the changing of the
stickers of the items, my response would be that this was a supply
concern. I raised this concern to our management and that was the
solution that was given to us.
47
SEN. PANGILINAN. Mr. Chairman, with the permission of—she,
therefore, confirms that they actually were doing it.
MS. MAGO. Yes, Mr. Chairman.
THE CHAIRPERSON. With the permission of—go ahead.
MS. MAGO. That is something that I cannot deny.
SEN. LACSON. So, she admitted?
THE CHAIRPERSON. Senator Pangilinan?
SEN. PANGILINAN. I just made a manifestation and, with the

permission of Senator Lacson, I’m just placing on record that she just
admitted that they were actually switching the expiry dates because that
was—as I understand—the instructions of management. Palitan iyong
expiry date from 2020 to 2021. Tama po ba iyon?
MS. MAGO. Yes, Mr. Chairman, that is something that I cannot deny.
THE CHAIRPERSON. So, you were swindling the government? Ms.

Mago?
MS. MAGO. I believe so, Mr. Chairman.
THE CHAIRPERSON. Excuse me?
MS. MAGO. I believe that is the case, Mr. Chairman.
THE CHAIRPERSON. So, you admit that you and Pharmally were
swindling the government. Niloloko ninyo ang taong Pilipino. Nahuli ka
na ni Senator Lacson. Nahuli ka na ni Senator Pangilinan. Nahuli ka na
namin. Mayroon pa akong itatanong sa iyo, baka lalong mahulog ka na
diyan sa silya mo.
SEN. LACSON. As a follow-up, Mr. Chairman—
THE CHAIRPERSON. Yes, go ahead, sir.
SEN. LACSON. Who ordered you to give that instruction to the

warehouseman? Since you admitted already that you get the instruction,
now, who instructed you to give that instruction? I supposed it was not
on your own initiative that you gave that instruction, right?
48
MS. MAGO. Yes, Mr. Chairman.
SEN. LACSON. Who instructed you?
MS. MAGO. The instructions came from our management po.
SEN. LACSON. Who particularly?
MS. MAGO. I received the instructions from the PPC management,

particularly Mr. Mohit Dargani.
THE CHAIRPERSON. Mohit Dargani.
Here the government was not only shortchanged by making it appear that the
old were ostensibly new stocks; there was also grave disregard for the health and lives
of our frontliners who, already bearing the brunt of the virus’s virulence, were sent to
the trenches with defective equipment. They not only scammed the government and
the people, they placed at grave risk the welfare of our healthcare providers, all for
the sake of profits.
C. Tax Evasion of Yang Hong Ming, Tigerphil and other companies
involved who supplied supplies for use against the virus
Tigerphil Marketing Corporation (Tigerphil), the supplier of Pharmally’s initial
facemasks delivery to PS-DBM, sales in 2020 was 21.5M but its Audited Financial
Statement only said that its sales for the year was only 3M.
Tigerphil said they already filed their amended return just a few weeks before.
They paid additional tax of Php 553,886.88 in their amended return. This would not
49
have happened had the investigations not uncovered this tax evasion- and Malacanang
says that nothing ever happens in the inquiries, in aid of legislation.
However, once the returns are already audited, a taxpayer can no longer file
their amended returns. Thus, Tigerphil is already open for BIR prosecution.
Yang has not given the Committee information as to how much he had loaned
Pharmally and how much he had earned from those loans. Given his record of flouting
rules, regulations, and the law, he might not even have paid taxes on it. Has the
Bureau of Internal Revenue conducted an audit of his businesses, his income, his
source of wealth?
Records of the Bureau of Internal Revenue also reveal that Yang Hong Ming aka
Michael Yang started to pay taxes only in 2018, where he paid a measly amount of
Php 7,600. These puny payments despite his being in business for 14 years, and in
spite of owning many and large businesses.
Government had been collecting lower taxes- funds that could be used for the
purchase of vaccines, pay our debts, and provide SAP for our long- suffering people.
Those who truly suffer are the unemployed, the daily wage earners, the poor, and the
downtrodden while the burden of supporting the government falls on the fixed-earning
employees whose taxes due are already withheld from them.
50
ROGUES GALLERY
I. Lloyd Christopher Lao
Lloyd Christopher Lao was initially with the Office of the Special Assistant
to the President under the now- Senator Bong Go who is listed in some
documents as his then immediate supervisor, despite denials by the senator to
the contrary. It is common knowledge that the senator was and is relied heavily
upon by the President in granting audiences, making appointments, policy
approvals and declarations. The almost exclusive access to and influence of the
senator over the President cannot be disputed.
In the PS-DBM, Lao was OIC and was accountable only to the Office of
the President; even the Secretary of the DBM had no supervision and control
over him and his acts. He signed practically all the contracts with and/or awards
for Pharmally.
After the major contracts were signed under Bayanihan 1 and some of
2, he left the office to pursue private practice. Some time in the previous
October, he applied but withdrew his application for Overall Deputy
Ombudsman. Talk about the snake guarding the chicken coop.
He admitted to being negligent by allowing a paltry P625,000 capitalized
company to bid for contracts in the millions, and later billions of pesos. Perhaps
he did not bother to check the Articles of Incorporation, since he is too familiar
with the owners of Pharmally.
51
TSN August 27, 2021:
SEN. DRILON. Yes. Atty. Lao, you were saying that you did not
look at the General Information Sheet because that was not
required. But the Articles of Incorporation, is it not a fact that it
would show that Pharmally was incorporated in September of
2019, just about six months before they got supply contracts
amounting to billions of pesos? Did you look at how much the paid-
up capital of Pharmally to be authorized to enter into such a huge
supply contract? The authorized capital stock—I’m sorry, the paid-
up capital is less than ₱600,000 but the total award to Pharmally,
barely a six-month-old corporation, amounted to 8.6 billion. Did
you exercise diligence in doing this?
MR. LAO. We failed to check on the Articles of Incorporation, Mr.

Chair, only the—
SEN. DRILON. Such a simple thing, Articles of Incorporation. It is

supposed to be a corporation. You are a lawyer. A simple thing for
you to do is to look at the Articles. And if you look at the Articles,
you would notice that it was only incorporated in September of
2019 with a paid-up capital of less than 600,000 and it ended up
with contracts worth 8.6 billion. Are you telling us that given these
figures, you exercised due diligence and protected public money?
MR. LAO. During that time, Mr. Chairman, we did our best to
exercise due diligence.
He also admitted negligence for not getting the lowest price in the
market.
TSN August 27, 2021:
MR. LAO. No, Mr. Chair. No. Let me just clarify, Mr. Chair. The
difference between—when we procured the items, initially, we were
able to buy the face mask at ₱16, which was on March 20. Then,
on April 6, we bought it at 27.49. Then, on April 6 (?) at 500,000—
at ₱27.72. Then, April 14 at 22.50; April 16 at 22.50; April 20 at
₱22; April 27 at 13—
52
SEN. PANGILINAN. Yes, yes, I understand that. I understand
that. But Senator Gordon earlier said that the Red Cross was buying
it at ₱5 per mask. You were saying 13, 16, 27. So that’s five times
more. Hindi ba? For the face masks
MR. LAO. ... confirm that, Mr. Chair, because we have not seen the
data that the actual amount that Red Cross was actually buying. But
assuming that it is true, I believe the difference is that Red Cross
has wider access during that time, compared to us, Mr. Chair.
SEN. PANGILINAN. Well—

MR. LAO. ... experience, and I was just recently transferred to our
office, medyo malaki po ang difference, Mr. Chair, given the—I
think, in fact, early those time, Red Cross was—
SEN. PANGILINAN. Well, it is also possible, Mr. Lao, that you

were negligent. It is possible. I’m not saying you were, but the
possibility that you were negligent, that you purchased the—that
Red Cross is more circumspect and was able to purchase it at ₱5
while government—because, perhaps, I don’t know, maybe
because of negligence—bought it five times more expensive. Maybe
if there was a more diligent search, maybe if there was a more
diligent process that we could have brought down the price of a ₱27
face mask and a ₱120—₱22 face shield.
MR. LAO. Mr. Chair, we just like to state, during that time, we were
able to canvass, ang offer kasi during that time was roughly around
₱40, so medyo mahal talaga, and ₱28 iyong surgical mask. And
iyong face shield, when we were trying to buy it during that time,
the offer was around 400, 350, and the lowest was 120.
SEN. PANGILINAN. Okay.
MR. LAO. When you say that there might be negligence or we were
not able to exhaustively look for the cheapest supplier, there might
be a possibility, given the scenario that we really lack time, that we
lack the resources, we lack the connection during that time, that
might be a possibility.
Mr. Lao signed practically all the contract awards to Pharmally worth
P8-11 billion pesos, even if Pharmally- a P625,000 company- was clearly not
53
qualified (legally, technically, and financially) to enter into such contracts.
There was clear favoritism granted to Pharmally for it cornered a large bulk of
supply contracts despite the company’s inadequacies. As the contracts were
mostly negotiated, Lao deigned to choose Pharmally over another Filipino firm
even if, it was discovered during the hearings, it offered lower prices; this
despite the clear mandate of Bayanihan 1 to favor local
manufacturers/suppliers.
This was not mere negligence on the part of Lao to choose Pharmally,
the facts stated above plainly show that the partiality was intentional.
II. Pharmally Pharmaceutical Corporation
1. Linconn Ong
2. Mohit Dargan
3. Twinkle Dargani
4. Krizle Grace Mago
5. Huang Tzu Yen
6. Lin Weixiong
7. Iluminada Sebial
These people from Pharmally are the luckiest people on earth- luckiest even in
the time of a pandemic. They are special because they have the proper connections.
The corporation was formed as late as September 2019, it had zero track record
in dealings with either the public or private sector, it had a paid- up capital of a measly
P625,000.
54
Undeterred however, by those disadvantages, Pharmally audaciously bidded for
an initial P8-13 million contract for masks; later they agreed to supply P54 million
pesos worth of supplies and equipment. From that not-too-modest start, the contracts
kept falling on their laps until the total reached P11 billion, plus or minus.
A fair question to ask would be, how did this tiny corporation get to acquire all
those contracts? The investigations, so far, have discovered that Pharmally had the
right contacts, the best fixers, crooked government officials, and the backing of a
presidential best friend, which is not to say that the story ends there for there still are
details that continue to be discovered, creating a wider, more expansive picture. The
effort is exhausting, there is no cooperation from those tasked with discovering,
investigating, solving crimes, and prosecuting them. The best that the President offers
is to cover up.
Huang Tzu Yen, Singaporean citizen, also known as “Yenson Huang”44, is the
President of Pharmally Pharmaceutical Corporation. He is also its largest shareholder.
He was among the persons introduced by Michael Yang to the President in March 2017
in Davao City. Huang is a fugitive from the law in Taiwan for stock manipulation and
other offenses totalling the equivalent of P1.2 billion, a staggering fortune that is
challenging to launder unless it be disposed in large amounts possible only in
transactions like government contracts, and causing severe losses to many Taiwanese
investors - not necessarily a paragon of virtue. Such crimes notably occurred in
44
Senate TSN Hearing No. 11 dated 11 October 2021, page 216.
55
September 2021 a few days after Pharmally Pharmaceutical Corporation was
incorporated with the SEC in the Philippines. In the Blue Ribbon hearings, after a series
of hemming and hawing, Huang admitted that Yang provided them with financing. He
asserts that his life savings were used to pay for the supplies bought in China, but he
fails to tell us how, with whom, and how much he “paid” them. Huang statements
belie Michael Yang’s initial claims that his involvement with Pharmally is limited only
to introductions with the President in March 2017. Huang was also President of
Pharmally Biologicals Company (PH) Inc., where Rose Nono Lin, an established
business associate of Michael Yang as further discussed below, was Corporate
Secretary and where Gerald T. Cruz, Executive assistant to Michael Yang as likewise
discussed further below, is a member of the Board of Directors and shareholder.
Yenson most recently admitted that, a few days after the Dargani siblings were cited
in contempt and disappeared in the middle of Senate proceedings, he assisted them
in looking for private air transport for the purpose of absconding and leaving the
Philippines. While he said that he left the specifics of airplane flight to Mohit Dargani’s
people whom he only knew by name as “Morris Daniel,” Yenson confessed that Morris
Daniel might be a name made up by Mohit Dargani.45
Linconn Ong, admitted translator- and apparent acolyte - to Mr. Yang, initially
denied that Yang had something to do with Pharmally Pharmaceuticals. Later,
however, he also admits to receiving financing from Mr Yang. We do not know yet
how much and for what consideration because he invokes a novel excuse for refusing
to answer a question- there is a non-disclosure agreement (NDA) between him and
45
Senate TSN Hearing No. 17 dated 21 December 2021, page 68.
56
Yang. but we will get to the truth yet in the days to come. Linconn Ong admits that
he secured Pharmally’s first (1st) contract with PS-DBM by talking to OIC-Usec. Lao
on 24 March 2020 and who ordered PS-DBM to release an RFQ to the undercapitalized
Pharmally. For their first contract, Mr. Ong placed an order with Tigerphil (like
Pharmally, just another middleman, a non- manufacturer) for masks worth P9 million.
He turns around and sells the goods to PS-DBM for P13.86 Million, without much of a
sweat. After all these transactions, Ong was able to buy for himself not one, but two,
Porsches. He also owns a Lexus. All bought after the Pharmally transactions. Linconn
Ong must have been acquainted with the President at the very least as he was pictured
there many times, one picture being with Michael Yang and the President.
The Dargani siblings accomplished unequaled contempt for the Senate. They
attempted to abscond beyond the Senate’s reach and were thwarted in Davao
International Airport in Davao City in no small thanks to the faithful service of various
public authorities upholding the rule of law. Records reveal that the Darganis, in
cooperation with Huang Tzu Yen, actively pursued efforts to leave the Philippines
within three (3) days from being cited in contempt46. A much earlier flight from Davao
to Dubai for the amount of USD 140,000 supposedly on 08 November 2021
encountered issues, which led to the thwarted flight from Davao to Malaysia, priced
at USD 50,000, on 14 November 2021.
Mohit Dargani, the Treasurer and Corporate Secretary of the corporation
receives the checks from PS-DBM amounting to millions, hundreds of millions, even
46
Senate TSN Hearing No. 12 dated 19 October 2021, pages 119-121.
57
staggering billions of pesos. He still has to inform the Committee how the monies were
withdrawn, where he/they sent it, and what he/they used it for. He is also the one
pointed out to by Krizle Mago as the person from management who instructed her to
change the dates of the face shields to make them appear newer than the original
dates of manufacture. This much we know, he was able to buy a Porsche 911 Turbo
S, and was able to gift his sister, Twinkle, with a Lamborghini Urus. To date, he has
not told the Committee how much taxes he paid for the generous present. Note must
be made, too, that he bought these two expensive and luxurious cars after the
Pharmally deals. Mohit also submitted an undertaking to the PS-DBM, which was
signed though un-notarized, a violation of a legal requirement. How the undertaking
was accepted as sufficient compliance remains suspect. He is also known to have a
luxurious lifestyle and is frequently seen in elite social circles. He is now detained in
the Pasay City Jail for continued refusal to genuinely cooperate with the Senate, and
for failure to account for corporate records, such as Pharmally’s costs of goods sold,
which is his responsibility as Corporate Secretary, and which he had undertaken to
look for and submit- but has continually refused to.
Twinkle Dargani, is the sister of Mohit. She is/was the President of the
corporation. She was a recipient of a Lamborghini; a transaction which was admitted
to have evaded payment of taxes due and demandable to the BIR. Much like her
brother, Twinkle Dargani is also seen in elite social circles with pictures showing her
in the presence of President Duterte, and celebrating her birthday in Balesin Island.
58
Krizle Grace Mago, a staff member of Pharmally admitted to changing the
dates of the face shield certificates in order to make them appear brand new. A
witness, in a taped interview, but supported by a signed and notarized affidavit
revealed to the Committee that it was she who gave instructions for the changes. She
pointed out to Mohit Dargani as the one- from management- who gave the original
instructions. Was she a participant in a swindling of government?, she was asked by
your Chair. “Yes,” was the unequivocal answer. Shortly thereafter, Ms. Mago would
disappear for days causing the Senate to be extremely distressed until she reportedly
went to the House of Representatives for “protective custody.” Ms. Mago then
recanted her expose. BIR Commissioner Dulay also certified that Ms. Mago’s declared
Tax Identification Number (“TIN”) is invalid, in the following wise: “we reiterate our
earlier findings that there are no records available for Krizle Grace Mago. This only
shows that said taxpayer is not registered with the BIR. Verification also discloses that
TIN 702-911-769-000 is an invalid TIN.” As mentioned further below, Ms. Mago is part
of Business Beyond Limits OPC, a company with a joint venture with Pharmally and
whose Chief Financial Officer is Gerald T. Cruz, Executive Assistant of Michael Yang.
Ms. Iluminada Sebial was the external auditor of Pharmally. She signed a
financial audit either without seeing the supporting documents or through negligent
acts, without caring to see the papers contrary to the 2004 Philippine Accountancy Act
(RA 9298) and international auditing and accountancy standards. She could not
answer questions satisfactorily about how the audit was made, which reveals that she
was paid just to affix her signature. She could not even account for seemingly-
innocuous deeds of donations made in the amount of P 33 Million. Ms. Sebial, despite
59
initial denial, admitted that she also audited Paili Holdings, Inc., one of Michael Yang’s
corporations.
Lin Weixiong, a close friend of Michael Yang, is Pharmally’s Financial Manager.
He is also husband to Rose Nono Lin, who holds crucial positions in companies
controlled and owned by Michael Yang. Records reveal that Pharmally’s Board
unanimously appointed Lin Weixiong as Financial Manager. The Board claims they no
longer remember the exact person who nominated him to be Financial Manager, when
Lin Weixiong appears on paper to have no shareholdings or direct connection with
Pharmally. As Pharmally’s Finance Manager, Pharmally granted Lin Weixiong the
extraordinary corporate authority to, among others, freely withdraw funds from
Pharmally’s Asia United Bank account. Huang Tzu Yen, however, admitted that Lin
Weixiong was purposely installed in order to ensure Pharmally’s payments to Michael
Yang. In a Secretary’s Certificate dated 19 May 202047 signed by Mohit Dargani,
- Lin Weixiong is authorized to deposit any of the corporation’s funds to Asia
United Bank;
- The bank is authorized to pay, encash, or otherwise honor and charge to the
corporation any and all checks, bills of exchange, orders or other instruments
for the payment of money or withdrawal of funds, including those which may
cause overdraft, when signed, made, drawn, accepted or endorsed on behalf
of or in the name of the corporation by him or Mohit Dargani;
47
https://drive.google.com/drive/u/1/folders/17jxYr-RzCJEh3HI-qhidIA907s2sQSKS
60
- He is authorized to apply, negotiate for and obtain credit facilities with Asia
United Bank in such amount as the corporation may deem necessary under
such terms and conditions as may be approved by the said bank;
- He is authorized to apply for and access the corporation’s account through the
bank’s electronic banking services, thereby waiving the dual signature
requirement for Corporate Account.
All told, Lin Weixiong, business partner and protector of Michael Yang’s interest
in Pharmally Pharmaceutical, exercised the full bundle of rights associated with
ownership of the bank account. He could transact on his own authority, as the dual-
signature requirement was waived. The ineluctable conclusion thus is that he, together
with Michael Yang, co- owned the funds in Pharmally’s AUB account.
Despite multiple invitations, Lin Weixiong has failed to appear, whether
physically or remotely, at the Blue Ribbon committee hearings allegedly because of
repeated infection of Covid-19 in Dubai. His presence in Pharmally bolsters the belief
that Michael Yang indeed controlled and earned billions from Pharmally transactions
despite his name not appearing anywhere- and despite Rose Nono Lin’s past assertions
that they had nothing to do with Pharmally Pharmaceuticals.48
III. Michael Yang aka Yang Hong Ming
Michael Yang is a Chinese citizen with the distinction of having been appointed
as Adviser to the President on Economic Affairs of the Philippines in 2018. He is a
48
Senate TSN Hearing 15 dated 26 November 2021, page 19.
61
businessman in Davao who owns malls under the business name Davao Chinatown
Los Amigos (“DCLA”), and owns several multi-million properties all over the Philippines
including those in Manila and Clark. He refused to disclose the source of his funds and
his business interests for fear that “he will lose customers.” He introduced Pharmally
International to the president in March 2017 during a meeting in Davao, but strongly
averred that he had no more business – had nothing to do with Pharmlly beyond
introduction, which later turned out to be a bald-faced lie. He was financier, and his
business partner, Lin Weixiong, was finance manager of Pharmally- a fact we
discovered much later after we found a notarized document signed by Lin Weixiong
and Mr Dargani regarding such appointment.
He did not pay taxes. He has been in the Philippines since 1999, and admitted
to having an RTW business, but began paying taxes only in 2018.
Michael Yang evaded two subpoenas until he was served with an arrest
warrant, prompting him to finally appear before the body. Despite his declarations in
corporate documents as submitted to the Philippine authorities like the Bureau of
Immigration and the Securities and Exchange Commission, Mr. Yang admitted simple
truths like his residence in Forbes Park. While he initially denied having any contact
with Pharmally since he introduced the company to the President in Davao in 2017;
later on, in the course of the hearings, he admits that he lent money, guaranteed the
purchases by Pharmally to Chinese vendors/suppliers, and introduced Pharmally to his
supplier-friends in China. He lied. However after being in the hot seat in his first
62
appearance, he then again evaded the following hearing due to “hypertensive
urgency.”
He had staff at Narra street, Forbes Park deny that he lived there- as the
subpoenas were being served there- only for him to admit later that Pai Li Holdings
leased the place for Php 500,000/month for him and his family, more or less.
He is here as a permanent resident on a Section 13 visa, but had paid only Php
100,000 plus in personal taxes last year.
Mr. Yang has also been embroiled in more than one national controversy and
always involving the President himself. There are highly confidential official
submissions, unacted by the Office of the President, the Office of the Special Assistant
to the President, and the Philippine National Police, suggesting that Mr. Yang is
intimately involved with various heinous crimes such as drug trafficking and money
laundering. Nonetheless, Mr. Yang appears unfazed by his own acts and omissions,
exposing him to Philippine laws against deportation, false testimony, plunder, and
evasion of the timely and proper payment of taxes- a hubris borne out of his closeness
to the president himself.
Gerald Cruz, the signatory in Michael Yang’s Contract of Lease as Pai Li
Holdings, Inc.’s Executive Secretary (now Paili Estate Group) – where Michael Yang is
an incorporator – is also listed as an incorporator to Pharmally Biological Corporation
(together with Huang Tzu Yen) and also in Beyond Limits OPC. Res ipsa loquitur.
63
IV. Rose Nono Lin, Gerald Cruz, and other Michael Yang associates
Rose Nono Lin, Lin Weixiong’s wife, appears in four (4) out of eight (8)
companies where Michael Yang has direct shareholdings. She holds vital corporate
management positions such as President, Corporate Secretary, and Treasurer. She
was also the Corporate Secretary of Pharmally Biological Company PH, Inc.
(“Pharmally Biological”), where Huang Tzu Yen also held the position of President.
Pharmally Biological’s largest shareholding is a Singaporean company named
Pharmally Philippine Holding(s) Pte. Ltd. Rose Nono Lin is the registered owner of at
least five (5) vehicles, including a Lexus, with the approximated acquisition cost of
P38 million. She submitted, through her legal counsel, a letter dated 26 November
2021 to the Committee a supposed complete list of her real property; but, the Land
Registration Authority’s letter dated 16 December 2021 reveals that, despite having
assistance of legal counsel and more than reasonable opportunity to tell the truth,
Mrs. Lin underreported the extent of her assets. The records reveal that the parcels
of real property are registered not only in her name but also in her husband’s. Mrs.
Lin’s spouse Lin Weixiong is an alien- a Chinese citizen- and the Constitution prohibits
the ownership by an alien of real estate.49
Ms Nono- Lin’s lack of candor is patent in the following submissions:
a. List submitted by Rose Nono Lin to the Committee :
49
1987 Constitution, Article XII (National Economy and Patrimony), Section 7.
64
b. List submitted by the Land Registration Authority to the Committee:
65
66
67
68
Gerald T. Cruz, Executive Assistant to Michael Yang, appears in three (3)
corporations with direct links to Michael Yang. Having no direct personal or
professional connections with any of the corporate officers of either Pharmally
Pharmaceutical Corporation or Business Beyond Limits OPC, Mr. Cruz was appointed
as its Chief Financial Officer. Despite several attempts at service and the Senate Blue
Ribbon Committee’s invitations thereto, including through his associates, Mr. Cruz has
yet to obey the summons of the Senate.
Jayson B. Uson, like Gerald Cruz remains a mystery and in absentia. Based on
the Bureau of Immigration’s records, Mr. Uson left for Japan in September 2021, about
a month from the first hearing of this Committee and when the focus shifted from
healthcare workers’ plight to the fraud, waste, and abuse of public funds and assets
reported by the Commission on Audit. Mr. Uson appears as shareholder and corporate
officer with important positions such as President, Corporate Secretary, and Treasurer,
in seven (7) out of eight (8) companies directly associated with Michael Yang.
Rose Nono Lin, Gerald T. Cruz, and Jayson Uson are interlocking directors of
Michael Yang’s companies and associated companies. They also have the same,
similar, and/or interlocking residential and business addresses declared across
different corporations and even with records at the Land Transportation Office.
69
V. Business Beyond Limits OPC
Business Beyond Limits OPC is a one person corporation (“OPC”) that has
a joint venture with Pharmally Pharmaceuticals Corporation. It was able to
secure a P 37.87 million contract with the Department of Health on 11 June
2021.50
Sophia Custodio is the President and sole shareholder of Business Beyond
Limits OPC. Mohit Dargani admits that she is his girlfriend. Since the pandemic
adversely affected the airlines and tourism sectors to which Ms. Custodio belonged,
Mr. Dargani revealed that the OPC was primarily created for Ms. Custodio’s benefit.
The joint venture and contracts with DOH was intended to build the OPC’s portfolio.
50
https://doh.gov.ph/NOA-IB2021-135
70
Ms. Custodio offered the OPC’s nominee positions to Ms. Krizle Mago and Anne Marie
Chua, both of whom accepted the nomination. SEC records also indicate that the OPC
appointed the above-mentioned Mr. Gerald Cruz, Executive Assistant of Michael Yang,
as the OPC’s Chief Financial Officer. Despite repeated invitations and warnings, Ms.
Custodio has never appeared before the Committee. A subpoena was issued
commanding her presence at the hearings. It was served in her Cebu address; but,
her father who was there said that he had not seen Ms Custodio in two weeks, and
that he had no idea of her whereabouts.
Apart from her role as a purported whistleblower in Pharmally, Ms. Krizle Grace
Mago is also a nominee and Corporate Secretary of Business Beyond Limits OPC. Ms.
Mago admitted that she was used by her bosses in Pharmally for the OPC because of
her extensive experience dealing with pandemic procurement which began as early as
Pharmally’s first (1st transaction) with PS-DBM on 24 March 2020. Ms. Mago
explained:
“MS. MAGO. Mr. Chairman, may I make a statement regarding my

involvement with Business Beyond Limits? So, the truth is I was
appointed, I was—how do I say this? I was—Inilagay ako diyan for
convenience, Mr. Chairman.
THE CHAIRPERSON. So, ginagamit ka nila?
MS. MAGO. And if you’ll allow—
THE CHAIRPERSON. Answer yes or no. Sa tingin mo, ginagamit ka lang

nila, iyong pangalan mo?
MS. MAGO. For convenience, Mr. Chairman, I believe so.51”
51
Senate TSN Hearing No. 9 dated 24 September 2021, page 84.
71
Anne Marie Chua, a Pharmally employee, is also a nominee of Business Beyond
Limits. Together with Ms. Mago, she accepted the nomination thereto on 16 June
2020. A subpoena was issued against her. Her father received the subpoena in the
address she submitted to the NBI. BUt the father said that he had not communicated
with her since the year 2000.
Gerald T. Cruz, who happens to be the Executive Assistant to Michael Yang,

was appointed as Business Beyond Limits OPC’s Chief Financial Officer.
VI. Warren Rex H. Liong
Procurement Director of PS-DBM during these times, he signed documents for
approval by Lao. He was in charge of requesting quotations from possible suppliers
and recommending the approval of Price Monitoring/Market Survey Reports which
showed that Pharmally submitted the lowest bids and to justify award of the contracts
to Pharmally.
Moving the Goalposts
1. 14 April 2020 - Face Masks (P54 Million)
Purchase Order (PO20-00181-CSE)52

Product: Face Masks (14 April 2020)
Quantity: 2.4 Million pieces
Unit price: P22.50
Total: P54 Million
Pharmally submitted a bid of P22.50 dated 13 April 2020. The contract was
awarded to Pharmally the day after with the Purchase Order dated 14 April 2020.
52
https://drive.google.com/file/d/1aJkMXb8jUNK3-8AVug8Ew01qUqsdHWhK/view?usp=drivesdk
72
A Price Monitor/Market Survey Report was prepared by PS-DBM which indicated
that two other companies who bid for the same supply contract were “non-complying;
no stocks on hand” while Pharmally had “2.4 Million pieces stocks on hand”.
However, a review of the actual bid proposals of the 2 other companies would
reveal that these were dated 15 April 2020 - a day after the date of Purchase Order
to Pharmally (14 April 2020).
The supposed bid of two other companies (Cosmic Technologies, Inc and Ashton
Homes) used in the Price Monitor/Market Survey report of PS-DBM were both dated
the day after the Purchase Order had already been awarded to Pharmally.
In fact, the Request for Quotation sent by PS-DBM to 2 other companies provided
a deadline to submit their “quotation, on or before April 15, 2020 at 1:00” – a day
after the date of the Purchase Order (14 April 2020).
Price Monitor / Market Survey Report

Prepared by: Gerelyn Vergara
Reviewed by: Warren Rex H. Liong
Approved by: Lloyd Lao
(No date)
2. 20 April 2020 - Face Masks (P220 Million)
Purchase Order (PO20-00189-CSE)

Product: Face Masks (20 April 2020)
Quantity: 10 Million pieces
Unit price: P22.00
Total: P220 Million
73
Pharmally submitted a bid of P22.00 dated April 14, 2020.
To justify award to Pharmally, PS-DBM drafted a Price Monitor/Market Survey
Report showing that the 2 other companies who bid for the same supply contract
offered at a more expensive price by P0.50 and were “non-complying; no stocks on
hand; based on previous offer”.
The Pharmally bid was cheaper by P0.50 and had “10 Million pieces stocks on
hand”.
HOWEVER, a review of the bid proposal of the 2 other companies would reveal
that these were exactly the same documents (dated 15 April 2020) already used in
previous Purchase Order to justify awarding to Pharmally and to show/prove that
Pharmally submitted a cheaper bid.
It was only the bid document of Pharmally which was a new submission in the
preparation of the Price Monitor/Market Survey Report which justified the award to
Pharmally.
Price Monitor/Market Survey Report

(No date)
74
3. 21 April 2020 - BGI RT-PCR kits (P600 Million)
Purchase Order: PO20-00210

Product: BGI RT-PCR Kits
Notice of Award: April 22, 2020
Contract/PO: April 23, 2020
Quantity: 8,000
Unit Price: P75,000.00
Total: P600 Million
Pharmally submitted a bid of P75,000.
We note that two (2) Price Analysis Reports were prepared by PS-DBM:
1. In one undated report recommended by Liong and approved by Lao, the bid of
Pharmally was not included53
2. On another report also recommended by Liong and approved by Lao, the
Pharmally bid was indicated with “delivery: 7 calendar days after issuance of
PO”54
A review of the bid proposals revealed that another company – One Top Medical
Resources – offered exactly the same bid price as Pharmally - P75,000 on the same
day. But, PS-DBM awarded the contract to Pharmally.
To justify the award to Pharmally, the 2nd Price Analysis Report now included
the bid of Pharmally with the indication that delivery by Pharmally would be “7
calendar days after the issuance of the Purchase Order” while the bid-delivery of the
other company - One Top Medical Resources - was written as “not indicated”.
53
https://drive.google.com/file/d/1RVgl5p_EzLBW2kJ34106DAgXJ37l0oR6/view?usp=drivesdk
54
https://drive.google.com/file/d/1mVuEj4dZ4-TkapzkuIVg_djtdheFnPbO/view?usp=drivesdk
75
Price Analysis Reports
Prepared by: Paul Jasper de Guzman
(No date)
4. 23 April 2020 - A*Star Fortitude RT-PCR Kits (P688 Million)

Product: A*Star Fortitude RT-PCR Kits
Quantity: 2,000
Unit Price: P344,000
Total: P688 Million
Again, two (2) Price Analysis Reports were prepared by PS-DBM, both
signed by Liong and Lao:
1. Pharmally was not included in one report55
2. On a 2nd report, Pharmally bid was indicated with “delivery: on or before May
1, 2020”56, even if this detail was not written in the actual proposal of
Pharmally.
To justify the award to Pharmally, another Price Analysis Report was prepared
which now included the bid of Pharmally with the indication that delivery by Pharmally
would be “on or before May 1, 2020”
It should also be noted that the bid submitted by another company - Biosite
Medical Instruments, Inc - was reflected in the 2nd Price Analysis Report (with
Pharmally) as higher [P400,000] than the actual bid submitted [P380,000].
55
https://drive.google.com/file/d/1-W2z5nOfFo-ka5s2adwCoR33WuPu7q0F/view?usp=drivesdk
56
https://drive.google.com/file/d/1aHRTTbS43sCSdGiiEOx1vDNV6M1Olk7p/view?usp=drivesdk
76
Two (2) different Price Analysis Reports prepared by PS-DBM -
Prepared by: Paul Jasper de Guzman
(No date)
5. 4 May 2020 - Surgical Gowns (P2.8 Million)

Product: Surgical gowns (8 May 2020)
Quantity: 10,000 pieces
Unit Price: P288.00
Total: P2.8 Million
Pharmally submitted a bid of P288 dated May 1, 2020.
PS-DBM drafted a Price Monitor/Market Survey Report57 showing that the bid
submission of other companies who bid for the same supply contract were more
expensive than Pharmally.
However, a review of the actual bid proposal of the other companies would
reveal that these were old proposals dated months before the award to
Pharmally - Nikka Trading: P302.41 (26 March 2020); Phil Pharma: P396.50
(26 March 2020); Unimasters: P375 (24 March 2020).
The bid document of Pharmally was a new submission dated 1 May 2020
included in the preparation of the Price Monitor/Market Survey Report.
The supposed bid of other companies used in the Price Monitor/Market Survey
57
https://drive.google.com/file/d/1U5M4EYn1sQVezK9HA1-ZNdM3yDlH9Ry3/view?usp=drivesdk
77
report58 of PS-DBM were old bid proposals dated March 2020. It was only the bid
document of Pharmally which was a new submission (1 May 2020) in the preparation
of the Price Monitor/Market Survey Report which justified the award to Pharmally.
Considering the volatile prices of these supplies during the pandemic, it cannot
be justified that the prices quoted by the other companies be used as comparison
against the bid of Pharmally dated more than 1 month after the bid of the other
companies.
Price Monitor/Market Survey Report

(No date)
6. 9 June 2020 - BGI Real Time Fluorescent RT-PCR (P2.877 Billion)

Product: BGI Real Time Fluorescent RT-PCR
Quantity: 41,400
Unit Price: P69,500
Total: P2.877 BILLION
Bid proposals indicate that Integrated Energy Systems quoted a lower price
[P62,000] than Pharmally [P69,500].
However, the Price Analysis Report prepared by PS-DBM states that the lower
bid (dated 3 June 2020) was “submitted beyond deadline: 12:17 pm”.
58
https://drive.google.com/file/d/1U5M4EYn1sQVezK9HA1-ZNdM3yDlH9Ry3/view?usp=drivesdk
78
A review of the bid records submitted by PS-DBM to the Blue Ribbon Committee
would reveal that there are actually two proposals attributed to Pharmally:
1. Dated June 2, 2020 (P69,500)
2. Dated June 8, 2020 (P69,500)59
A Request for Offer by PS-DBM sent to Pharmally shows that Pharmally was
given until 8 June 2020, 12 pm to submit its proposal. 60

but the bid proposal of the
supplier who quoted a lower price (dated 3 June 2020) was not considered.
Price Monitor/Market Survey Report61

7. 19 May 2021 - Personal Protective Equipment (P507.261 Million)62
Purchase Order: PO21-00197-CSE

Product: Personal Protective Equipment
Quantity: 517,613 pieces
Unit Price: P980.00
Total: P507.261 Million
We note that there was only one bidder - Pharmally (bid dated 22 April 2021)
- considered by PS-DBM in this transaction. It must be emphasized that this bidding
transaction was in April 2021 when there were several, if not a lot of, PPE
manufacturers, but PS-DBM only considered 1 bidder.
59
https://drive.google.com/file/d/1B84m_z7e529qkjH1nnuaB_vzI1kvPU63/view?usp=drivesdk
60
https://drive.google.com/file/d/1B84m_z7e529qkjH1nnuaB_vzI1kvPU63/view?usp=drivesdk
61
https://drive.google.com/file/d/1K2Gd_y-uYmZaPUYrdPszkrizXdvfpDGj/view?usp=drivesdk
62
Files deleted by PS-DBM from its original submission to the Blue Ribbon Committee -
https://drive.google.com/drive/folders/1J4b2_3ntOqs_Ee6xhsbZ7hU9fFvAzJFd ; not found in the latest submissions of PS-DBM (Price Analyses and
other Documents Relative to COVID-19 Procurement Projects, 12 Sept 2021)
https://drive.google.com/drive/folders/1_zM4xStNMXwuMB0G1D__SrEEFwgmVZO-
79
After receiving the bid of Pharmally, a Special Bids and Awards Committee
(SBAC) of PS-DBM immediately evaluated and resolved to negotiate with Pharmally
on the same day.
Two (2) days after, the SBAC held a meeting on a Saturday afternoon (24
April 2021).
The minutes of the meeting show that SBAC TWG found several issues on the
bid proposal of Pharmally:
1. Bidder failed to submit required Authorization of Distributorship and not
supported by Authentication from Phil. Embassy
2. Non-submission of ISO Certificate
3. Non-submission of FDA Certificate of Medical Device Notification
(bidder explained that they have a pending application but there were
few lacking documents)
4. Non-submission of FDA Certificate of Product Registration (bidder
submitted an expired FDA CPR)
5. Non-submission of marketing authorization or red ribbon certificate from Phil.
Consulate
6. Test report for gloves is different - for national food safety standard
rubber materials
7. Submitted sample for Particulate Respirator was non-compliant to
the technical specifications
80
8. Delivery requirement shall be within 20 calendar days with no extension upon
receipt of Notice to Proceed
On the Monday after, SBAC immediately declared Pharmally as a supplier with
technical, legal and financial capability to supply and deliver PPE. The SBAC Resolution
was approved by Lao.
PS-DBM claims urgent need for PPE and yet Pharmally only had 10% of stocks
needed at time of bidding and procedurally, Pharmally was allowed additional more
than 2 months (74 days) to deliver the PPE.
Atty. Warren Rex H. Liong was the one who reviewed all the documents that
were submitted before recommending to Lao for approval; but even an unnotarized
pro forma Omnibus Sworn Statement of Mohit Dargani was allowed to pass muster.
Later on, Warren Rex H. Liong for his efforts and hard work, was rewarded with
the second-highest anti-graft official of the land to complete the rear guard action-
protecting those in the current administration who have committed many wrongs,
especially in the issue at hand.
VII. Dickson Panti
81
Dickson Panti is the head of the BAC of PS-DBM. He was part of the approving
process for the awards to Pharmally. He vetted firms that were going to bid. He
recommended approval also of Pharmally’s bids.
VIII. Secretary of Health Francisco T. Duque III
Duque transferred a total of Php 41.4 Billion to PS-DBM during the height of
the pandemic in 2020. He issued Agency Procurement Requests as justification for the
transferred funds. However, on examination of the APRs, inherent overpricing is
prevalent. For one, the PPEs – ceiling price is at Php 2,000 while the suggested retail
price for this particular set of items range from Php 900 to Php 1,000. Following the
ceiling price stated in the APRs, PS-DBM then procured the items at prices a tad below
P2,000.
IX. The President, Rodrigo R. Duterte
Using resources of the government the President has reserved his regular
address to the nation to attack his perceived opponents, vilify his critics, stifle dissent,
threaten senators, and cast doubt without basis on investigations into corruption in
the administration that the Senate is doing The mere “whiff of corruption” test that he
promised to act on has become a stench. Umaalingasaw ang baho ng kawalang hiyaan
pandarambong dito sa Pharmally contracts na ito. The lack of action on the part of
Malacanan towards the anomalies exposed and in its stead a vehement protection and
82
defense of those involved leaves the people speculating about how close to the
President’s doorstep this goes.
To illustrate—
A. He attacks, he threatens the Chairman of the Blue Ribbon Committee no
end. As an example, he threatened:
“bababuyin kita hanggat sa kamatayan mo (September 16, 2021)63, “Bantay
ka at hindi ka habang panahon na senador”, and “Putang ina mo,” cursing the
latter’s mother. He also threatened the Chairman by saying something to the
effect that some person may physically harm him as payback.
This is quite an unfortunate statement, even if viewed as a hyperbole. No
decent leader of a country and a purported father of a nation- in the whole
wide world- says this about another member of a co-equal branch who just
matters to have uttered, “the emperor has no clothes.” But then again, he has
also cursed God, the pope, and has admittedly molested women.
B. He defies the Constitution which he had sworn to uphold
a. He tells the populace not to listen to COA- an independent constitutional
commission (August 17, 2021)
b. He attempts to order COA to investigate the PRC- a power he does not have
(September 16, 2021)
63
https://mb.com.ph/2021/09/16/gordon-tagged-as-a-despot-thief-by-angry-duterte/
83
c. He issues a memorandum banning officials and even the most junior employees
in the Executive Department from attending or cooperating in the investigation-
an act already previously declared unconstitutional in Senate vs Ermita (October
4, 2021)
It is notable that the President does not ban officials of the executive
department from attending hearings in the Senate; he does not even ban the same
people from attending any other Blue Ribbon Committee hearing; but HE BANS them
from attending THIS PARTICULAR INVESTIGATION IN THE SENATE AND NOT IN THE
HOUSE OF REPRESENTATIVES. Why this “special” treatment? Is it because we have
discovered corruption in his closest circle and, perhaps, there is even more to discover.
C. He displays his animus against COA
"Stop that flagging, god damn it! You make a report, do not flag and do not
publish it because it will condemn the agency or the person you are flagging.... What
you are doing is f-l-o-g-g-i-ng," railed Duterte. (August 17, 2021)
"Huwag ka muna mag audit hanggang hindi pa natapos ang trabaho ko. 'Yan
lang naman sana ang hinihingi natin. Do not conduct an audit on our work na ongoing
pa kasi dino-document pa 'yan," said Duterte,
In January 2019:
84
"Ah putangina 'yang COA na 'yan. Letse kasi yung COA, everytime may mali
talaga. Ano ba naman itong COA na ito? Kung magkidnap tayo ng taga-COA, lagay
natin, i-torture natin dito, 'tangina," said Duterte on Tuesday, January 8, 2019.
In September 2018:
"Sino'ng taga-COA dito? Ihulog mo na sa hagdan para 'di mag-report" said
Duterte during a meeting with his Cabinet and Marcos in Laoag City.
D. He attacks other senators, threatens the Senate Sergeant at Arms
He went as low as attacking the senators based on their physical appearances;
how Lacson parts his hair, Gordon mataba, etc. For nothing else to say, he hits Drilon’s
long settled and cleared allegations and berates Senator Pangilinan with, “Alam mo
Pangilinan hanggang dyan ka lang. Bakit mo takutin ang mga tao. Who are you to
threaten or even intimidate government workers”. He swipes even at our Sergeant at
Arms, bragging “isang tao ka lang”
E. He leads the defense
The committee was investigating the series of anomalies and the people
involved – Presidential appointees and friends, when he came to their defense. His
name had not even been mentioned- even obliquely, yet he led the attacks on the
COA, and then the Senate when his associates’ participation was already being
mentioned. Answering on behalf of his appointees at the expense of the money of the
85
people through the People’s Television (PTV) at a time when Covid response policies
were what was needed most.
As an example, without so much as a modicum of an investigation, he
exonerated Chinese businessman Michael Yang from any wrongdoing in relation to
Pharmally Pharmaceutical Corporation.64 He also admits to appointing Lao to critical
posts in the government because he trusts Lao who had previously worked with him
in his 2016 campaign team, and when he was Davao City mayor - "Anong masama
kung magbayad ako ng utang (What's wrong if I pay my debts)?"65
F. Betrayal of public trust
At the very least, the president has betrayed public trust. His threats, his non-
action on this gargantuan scam- and in a time of grave danger, his cover- up efforts,
his tyrannical use of presidential powers to prevent officials and employees from
participating in the hearings point to what was stated by the Supreme Court in
Gonzales v. Executive Secretary:
“The Constitutional Commission eventually found it reasonably

acceptable for the phrase betrayal of public trust to refer to "acts which
are just short of being criminal but constitute gross faithlessness against
public trust, tyrannical abuse of power, inexcusable negligence of duty,
favoritism, and gross exercise of discretionary powers. In other words,
acts that should constitute betrayal of public trust as to warrant removal
from office may be less than criminal but must be attended by bad faith
64
https://www.rappler.com/nation/duterte-defends-michael-yang-lao-covid-19-pandemic-contracts-controversy
65
https://www.rappler.com/nation/duterte-defends-michael-yang-lao-covid-19-pandemic-contracts-controversy
86
and of such gravity and seriousness as the other grounds for
impeachment.”
Worse, the President possibly broke the law by tolerating, this greatest of scams
that has resulted in untold human tragedy:
a. He allowed, tolerated, if not encouraged, the participation of his
intimate friend Michael Yang, a foreign national, in financing the
Pharmally contracts;
b. He admittedly ordered the transfer of P42 Billion of DOH funds to PS-
DBM for the purchase of supplies for use against Covid-19;
c. He appointed his trusted man- Lloyd Christopher Lao- to head the PS-
DBM;
d. He appointed Warren Rex H. Liong - Director for Procurement of PS-
DBM during these anomalies- to the second highest anti-graft office
in the land, Overall Deputy Ombudsman.
87
IV. RECOMMENDATIONS
Philippine case law states that “Settled is the doctrine that the President, during
his tenure of office or actual incumbency, may not be sued in any civil or criminal
case[.]” Additionally, while the Ombudsman had disciplinary authority over all
government officials, this power is expressly withheld “over officials who may be
removed only by impeachment or over Members of Congress and the Judiciary.”
However, at some point after his term of office, charges must be considered
against President Rodrigo Duterte for what has transpired in this great
anomaly. After all, he was the one who appointed all the people who
approved these transactions and aggressively protected and defended them
when they were caught in this horrible crime against our people. In the
course of doing so, the President attempted to diminish the Senate and
COA, institutions that safeguard our democracy and integrity.
The Committee, in this Partial Report, recommends further investigation and
prosecution by the Ombudsman and the Department of Justice into the liability of the
persons named hereafter for violations of the following:
A. Deportation proceedings
Undesirable aliens under Bureau of Immigration Operations Order SBM No. 2014-48
dated 30 September 201466.
66
https://immigration.gov.ph/images/OPERATIONSORDER/Sept2014/OOSBM2014-48.pdf
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1. YANG HONG MING;
2. LIN WEIXIONG; AND
3. QING JIN KE.
B. Violations of RA 3019, paragraphs (e) and (g)
SECTION 3. Corrupt practices of public officers. In addition to acts or omissions

of public officers already penalized by existing law, the following shall constitute
corrupt practices of any public officer and are hereby declared to be unlawful:
(e) Causing any undue injury to any party, including the Government, or
giving any private party any unwarranted benefits, advantage or
preference in the discharge of his official administrative or judicial
functions through manifest partiality, evident bad faith or gross
inexcusable negligence. This provision shall apply to officers and
employees of offices or government corporations charged with the
grant of licenses or permits or other concessions
(f) Neglecting or refusing, after due demand or request, without

sufficient justification, to act within a reasonable time on any matter
pending before him for the purpose of obtaining, directly or indirectly,
from any person interested in the matter some pecuniary or material
benefit or advantage, or for the purpose of favoring his own interest
or giving undue advantage in favor of or discriminating against any
other interested party.
(h) Entering, on behalf of the Government, into any contract or

transaction manifestly and grossly disadvantageous to the same,
whether or not the public officer profited or will profit thereby.
SECTION 4. Prohibition on private individuals. – (a) It shall be unlawful for

an for any person having family or close personal relation with any public official to
capitalize or exploit or take advantage of such family or close personal relation by
directly or indirectly requesting or receiving any present, gift or material or pecuniary
advantage from any other person having some business, transaction, application,
request or contract with the government, in which such public official has to intervene.
Family relation shall include the spouse or relatives by consanguinity or affinity in the
third civil degree. The word "close personal relation" shall include close personal
friendship, social and fraternal connections, and professional employment all giving
rise to intimacy which assures free access to such public officer.
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(b) It shall be unlawful for any person knowingly to induce or cause any public official
to commit any of the offenses defined in Section 3 hereof.
1. Christopher Lloyd Lao

2. Warren Rex H. Liong
3. Dickson Panti
4. Linconn Ong
5. Mohit Dargani
6. Twinkle Dargani
8. Huang Tzu Yen
9. Michael Yang aka Yang Hong Ming
10. Lin Weixiong
B. Violations of Plunder Law
Section 2 of Republic Act No. 7080 (An Act Defining and Penalizing the Crime of
Plunder) as amended by RA 7659:
"Sec. 2. Definition of the Crime of Plunder; Penalties. - Any public officer

who, by himself or in connivance with members of his family, relatives
by affinity or consanguinity, business associates, subordinates or other
persons, amasses, accumulates or acquires ill-gotten wealth through a
combination or series of overt criminal acts as described in Section 1
(d) hereof in the aggregate amount or total value of at least Fifty million
pesos (P50,000,000.00) shall be guilty of the crime of plunder and shall
be punished by reclusion perpetua to death. Any person who
participated with the said public officer in the commission of an offense
contributing to the crime of plunder shall likewise be punished for such
offense. In the imposition of penalties, the degree of participation and
the attendance of mitigating and extenuating circumstances, as
provided by the Revised Penal Code, shall be considered by the court.
The court shall declare any and all ill-gotten wealth and their interests
and other incomes and assets including the properties and shares of
stocks derived from the deposit or investment thereof forfeited in favor
of the State:"

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3. Dickson Panti
4. Linconn Ong
5. Mohit Dargani
6. Twinkle Dargani
8. Huang Tzu Yen
9. Michael Yang aka Yang Ming Hong
C. Estafa, under Article 315, Revised Penal Code
With unfaithfulness or abuse of confidence, namely:

(a) By altering the substance, quantity, or quality or anything of value
which the offender shall deliver by virtue of an obligation to do so, even though
such obligation be based on an immoral or illegal consideration

2. Mohit Dargani
D. Perjury/ False Testimony, under Art. 183, Revised Penal Code
Art. 183. False testimony in other cases and perjury in solemn

affirmation. — The penalty of arresto mayor in its maximum period to
prision correccional in its minimum period shall be imposed upon any
person, who knowingly makes untruthful statements and not being
included in the provisions of the next preceding articles, shall testify
under oath, or make an affidavit, upon any material matter before a
competent person authorized to administer an oath in cases in which
the law so requires.
Any person who, in case of a solemn affirmation made in lieu of an

oath, shall commit any of the falsehoods mentioned in this and the
three preceding articles of this section, shall suffer the respective
penalties provided therein.
1. Michael Yang aka Yang Hong Ming

2. Linconn Ong
4. Mohit Dargani
5. Rose Nono Lin
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E. Disobedience to Summons Issued by Congress, under Art. 150,
Revised Penal Code
Art. 150. Disobedience to summons issued by Congress, its committees

or subcommittees, by the Constitutional Commissions, its committees,
subcommittees or divisions - The penalty of arresto mayor or a fine
ranging from Forty thousand pesos (₱40,000) to Two hundred
thousand pesos (₱200,000), or both such fine and imprisonment, shall
be imposed upon any person who, having been duly summoned to
attend as a witness before Congress, its special or standing committees
and subcommittees, the Constitutional Commissions and its
committees, subcommittees, or divisions, or before any commission or
committee chairman or member authorized to summon witnesses,
refuses, without legal excuse to obey such summons, or being present
before any such legislative or constitutional body or official, refuses to
be sworn or placed under affirmation or to answer any legal inquiry or
to produce any books, papers, documents, or records in his possession,
when required by them to do so in the exercise of their functions. The
same penalty shall be imposed upon any person who shall induce
disobedience to summons or refusal to be sworn by any such body or
official."
1. Linconn Ong
2. Mohit Dargani
F. Falsification of Public Documents, under Art. 171 of the Revised
Penal Code, as amended by Republic Act No. 10951
Art. 171. Falsification by public officer, employee or notary or ecclesiastic

minister. - The penalty of prisión mayor and a fine not to exceed One million
pesos (₱1,000,000) shall be imposed upon any public officer, employee, or
notary who, taking advantage of his of position shall falsify a document by
committing any of the following acts:
xxx
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(4) Making untruthful statements in a narration of facts

2. Jorge L. Mendoza
3. Mervin Ian D. Tanquintic
G. Frauds against the public treasury and similar offenses, under
Art. 213, Revised Penal Code, as amended, RA 10951
The penalty of prision correccional in its medium period to prision mayor in its
minimum period, or a fine ranging from Forty Thousand Pesos (P40,000) to
Two Million Pesos (P2,000,000), or both, shall be imposed upon any public
officer who:
1. In his official capacity, in dealing with any person with regard to furnishing
supplies, the making of contracts, or the adjustment or settlement of accounts
relating to public property or funds, shall enter into an agreement with any
interested party or speculator or make use of any other scheme, to defraud the
Government;”

H. Violations of National Internal Revenue Code (RA 8424, as
amended most recently under CREATE) (“Tax Code”, for brevity)
1. General Provisions
SEC. 253. General Provisions. -

(a) Any person convicted of a crime penalized by this Code shall, in addition
to being liable for the payment of the tax, be subject to the penalties
imposed herein: Provided, That payment of the tax due after
apprehension shall not constitute a valid defense in any prosecution for
violation of any provision of this Code or in any action for the forfeiture
of untaxed articles.
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(b) Any person who willfully aids or abets in the commission of a crime
penalized herein or who causes the commission of any such offense by
another shall be liable in the same manner as the principal.
(c) If the offender is not a citizen of the Philippines, he shall be deported

immediately after serving the sentence without further proceedings for
deportation. If he is a public officer or employee, the maximum penalty
prescribed for the offense shall be imposed and, in addition, he shall be
dismissed from the public service and perpetually disqualified from
holding any public office, to vote and to participate in any election. If
the offender is a Certified Public Accountant, his certificate as a Certified
Public Accountant shall, upon conviction, be automatically revoked or
cancelled.
(d) In the case of associations, partnerships or corporations, the penalty

shall be imposed on the partner, president, general manager, branch
manager, treasurer, officer-in-charge, and the employees responsible
for the violation.
(e) The fines to be imposed for any violation of the provisions of this Code
shall not be lower than the fines imposed herein or twice the amount of
taxes, interest and surcharges due from the taxpayer, whichever is
higher.
2. Tax Evasion under the Tax Code’s Section 254
SEC. 254. Attempt to Evade or Defeat Tax. - Any person who willfully
attempts in any manner to evade or defeat any tax imposed under this Code
or the payment thereof shall, in addition to other penalties provided by law,
upon conviction thereof, be punished by a fine not less than Five Hundred
Thousand(P500,000) but not more than Ten Million pesos(P10,000,000) and
suffer imprisonment of not less than two (2) years but not more than four (4)
years: Provided, That the conviction or acquittal obtained under this Section
shall not be a bar to the filing of a civil suit for the collection of taxes.
3. Failure to File Return, Supply Correct and Accurate Information, Pay
Tax Withhold and Remit Tax and Refund Excess Taxes Withheld on
Compensation under the Tax Code’s Section 255
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SEC. 255. Failure to File Return, Supply Correct and Accurate
Information, Pay Tax Withhold and Remit Tax and Refund Excess
Taxes Withheld on Compensation. - Any person required under this Code
or by rules and regulations promulgated thereunder to pay any tax make a
return, keep any record, or supply correct the accurate information, who
willfully fails to pay such tax, make such return, keep such record, or supply
correct and accurate information, or withhold or remit taxes withheld, or refund
excess taxes withheld on compensation, at the time or times required by law
or rules and regulations shall, in addition to other penalties provided by law,
upon conviction thereof, be punished by a fine of not less than Ten thousand
pesos (P10,000) and suffer imprisonment of not less than one (1) year but not
more than ten (10) years.
Any person who attempts to make it appear for any reason that he or another
has in fact filed a return or statement, or actually files a return or statement
and subsequently withdraws the same return or statement after securing the
official receiving seal or stamp of receipt of internal revenue office wherein the
same was actually filed shall, upon conviction therefore, be punished by a fine
of not less than Ten thousand pesos (P10,000) but not more than Twenty
thousand pesos (P20,000) and suffer imprisonment of not less than one (1)
year but not more than three (3) years.
4. Civil Liability under the Tax Code’s Section 248 (B)
(A) There shall be imposed, in addition to the tax required to be paid, a penalty
equivalent to twenty-five percent (25%) of the amount due, in the following
cases:
(1) Failure to file any return and pay the tax due thereon as required under
the provisions of this Code or rules and regulations on the date
prescribed; or
(2) Unless otherwise authorized by the Commissioner, filing a return with an
internal revenue officer other than those with whom the return is
required to be filed; or
(3) Failure to pay the deficiency tax within the time prescribed for its
payment in the notice of assessment; or
(4) Failure to pay the full or part of the amount of tax shown on any return
required to be filed under the provisions of this Code or rules and
regulations, or the full amount of tax due for which no return is required
to be filed, on or before the date prescribed for its payment.
(B) In case of willful neglect to file the return within the period prescribed by
this Code or by rules and regulations, or in case a false or fraudulent return is
willfully made, the penalty to be imposed shall be fifty percent (50%) of the
tax or of the deficiency tax, in case, any payment has been made on the basis
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of such return before the discovery of the falsity or fraud: Provided, That a
substantial under-declaration of taxable sales, receipts or income, or a
substantial overstatement of deductions, as determined by the Commissioner
pursuant to the rules and regulations to be promulgated by the Secretary of
Finance, shall constitute prima facie evidence of a false or fraudulent return:
Provided, further, That failure to report sales, receipts or income in an amount
exceeding thirty percent (30%) of that declared per return, and a claim of
deductions in an amount exceeding (30%) of actual deductions, shall render
the taxpayer liable for substantial under-declaration of sales, receipts or income
or for overstatement of deductions, as mentioned herein.
Independent audit analyses67 reveal glaring misstatements, underclarations,
and other anomalies surrounding Pharmally’s (non- or mal-) compliance with the Tax
Code.
Due to Pharmally’s failure to report sales, receipts, or income in an amount
exceeding thirty percent (30%) of its declarations, there is substantial under-
declaration of taxable sales, receipts, or income which is a prima facie evidence of
false or fraudulent returns in clear violation of the Tax Code.
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https://drive.google.com/drive/folders/1NuuFk6gz8rgVrcaR890pw7VR-5Yk_EBr?usp=sharing
96
The disconcerting anomalies in Pharmally’s audited financial statements have
several implications including but not limited to a total tax deficiency (inclusive of
penalties, surcharges, and interest) in the amount of approximately Six Billion and
Three Hundred Million Philippine Pesos (P6.3 billion), and the very real possibility of
ghost deliveries.
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1. Tigerphil Corporation
2. Yang Hong Ming
3. Lin Weixiong
4. Mohit Dargani
5. Twinkle Dargani
6. Linconn Ong
7. Huang Tzu Yen
8. Christopher Lao
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I. Violations of the Revised Corporation Code, Section 166.
(Acting as Intermediaries for Graft and Corrupt Practices)
SECTION 166. Acting as Intermediaries for Graft and Corrupt Practices;

Penalties. — A corporation used for fraud, or for committing or concealing graft
and corrupt practices as defined under pertinent statutes, shall be liable for a
fine ranging from One hundred thousand pesos (P100,000.00) to Five million
pesos (P5,000,000.00).
When there is a finding that any of its directors, officers, employees, agents,
or representatives are engaged in graft and corrupt practices, the
corporation's failure to install: (a) safeguards for the transparent and lawful
delivery of services; and (b) policies, code of ethics, and procedures against
graft and corruption shall be prima facie evidence of corporate liability under
this section.
SECTION 167. Engaging Intermediaries for Graft and Corrupt Practices;

Penalties. — A corporation that appoints an intermediary who engages in graft
and corrupt practices for the corporation's benefit or interest shall be
punished with a fine ranging from One hundred thousand pesos
(P100,000.00) to One million pesos (P1,000,000.00).
SECTION 168. Tolerating Graft and Corrupt Practices; Penalties. — A director,

trustee, or officer who knowingly fails to sanction, report, or file the
appropriate action with proper agencies, allows or tolerates the graft and
corrupt practices or fraudulent acts committed by a corporation's directors,
trustees, officers, or employees shall be punished with a fine ranging from
Five hundred thousand pesos (P500,000.00) to One million pesos
(P1,000,000.00).
SECTION 169. Retaliation against Whistleblowers. — A whistleblower refers

to any person who provides truthful information relating to the commission
or possible commission of any offense or violation under this Code. Any
person who, knowingly and with intent to retaliate, commits acts detrimental
to a whistleblower such as interfering with the lawful employment or
livelihood of the whistleblower, shall, at the discretion of the court, be
punished with a fine ranging from One hundred thousand pesos
(P100,000.00) to One million pesos (P1,000,000.00).
1. Pharmally Pharmaceutical Corporation

2. Huang Tzu Yen
3. Twinkle Dargani
4. Mohit Dargani
5. Linconn Ong
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7. Lin Weixiong
J. Violations of the Government Procurement Reform Act
(Republic Act No. 9184), Article XXI (Penal Clause), Sections 65 (a)
(5) and (b) (4)
SECTION 65. Offenses and Penalties. — (a) Without prejudice to the

provisions of Republic Act No. 3019, otherwise known as the "Anti-Graft and
Corrupt Practices Act" and other penal laws, public officers who commit any of
the following acts shall suffer the penalty of imprisonment of not less than six
(6) years and one (1) day, but not more than fifteen (15) years:
(1) Open any sealed Bid including but not limited to Bids that may have
been submitted through the electronic system and any and all
documents required to be sealed or divulging their contents, prior to the
appointed time for the public opening of Bids or other documents.
(2) Delaying, without justifiable cause, the screening for eligibility, opening
of bids, evaluation and post evaluation of bids, and awarding of
contracts beyond the prescribed periods of action provided for in the
IRR.
(3) Unduly influencing or exerting undue pressure on any member of the

BAC or any officer or employee of the procuring entity to take a
particular action which favors, or tends to favor a particular bidder.
SEIDAC
(4) Splitting of contracts which exceed procedural purchase limits and

competitive bidding.
(5) When the head of the agency abuses the exercise of his power to reject
any and all bids as mentioned under Section 41 of this Act with manifest
preference to any bidder who is closely related to him in accordance
with Section 47 of this Act.
When any of the foregoing acts is done in collusion with private individuals,
the private individuals shall likewise be liable for the offense.
In addition, the public officer involved shall also suffer the penalty of
temporary disqualification from public office, while the private individual shall
be permanently disqualified from transacting business with the government.
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(b) Private individuals who commit any of the following acts, including
any public officer, who conspires with them, shall suffer the penalty of
imprisonment of not less than six (6) years and one (1) day but not more
than fifteen (15) years:
(1) When two or more bidders agree and submit different Bids
as if they were bona fide, when they knew that one or
more of them was so much higher than the other that it
could not be honestly accepted and that the contract will
surely be awarded to the pre-arranged lowest Bid.
(2) When a bidder maliciously submits different Bids through

two or more persons, corporations, partnerships or any
other business entity in which he has interest to create
the appearance of competition that does not in fact exist
so as to be adjudged as the winning bidder.
(3) When two or more bidders enter into an agreement which

call upon one to refrain from bidding for Procurement
contracts, or which call for withdrawal of Bids already
submitted, or which are otherwise intended to secure an
undue advantage to any one of them.
(4) When a bidder, by himself or in connivance with others,

employ schemes which tend to restrain the natural rivalry
of the parties or operates to stifle or suppress
competition and thus produce a result disadvantageous
to the public.
In addition, the persons involved shall also suffer the penalty of temporary
or perpetual disqualification from public office and be permanently disqualified
from transacting business with the government.
(c) Private individuals who commit any of the following acts, and any public
officer conspiring with them, shall suffer the penalty of imprisonment of not less
than six (6) years and one (1) day but not more than fifteen (15) years:
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(1) Submit eligibility requirements of whatever kind and nature
that contain false information or falsified documents
calculated to influence the outcome of the eligibility
screening process or conceal such information in the
eligibility requirements when the information will lead to
a declaration of ineligibility from participating in public
bidding. SEIDAC
(2) Submit Bidding Documents of whatever kind and nature that

contain false information or falsified documents or
conceal such information in the Bidding Documents, in
order to influence the outcome of the public bidding.
(3) Participate in a public bidding using the name of another or

allow another to use one's name for the purpose of
participating in a public bidding.
(4) Withdraw a Bid, after it shall have qualified as the Lowest

Calculated Bid/Highest Rated Bid, or refuse to accept an
award, without just cause or for the purpose of forcing
the Procuring Entity to award the contract to another
bidder. This shall include the non-submission within the
prescribed time, or delaying the submission of
requirements such as, but not limited to, performance
security, preparatory to the final award of the contract.
(d) When the bidder is a juridical entity, criminal liability and the
accessory penalties shall be imposed on its directors, officers or employees
who actually commit any of the foregoing acts.
1. Christopher Lloyd A. Lao

3. Huang Tzu Yen
4. Twinkle Dargani
5. Mohit Dargani
6. Linconn Ong
8. Lin Weixiong
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K. Violation of the Constitution prohibiting ownership by aliens of
real estate in the Philippines
1. Lin Weixiong
For all these crimes committed against the People of the Philippines, the
President and all those involved must be made answerable.
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Summary of recommended criminal charges
Filing of cases to support Michael Yang
deportation of an undesirable Lin Weixiong
alien Qing Jin Ke
Violation of RA 3019 or the Christopher Lloyd Lao

Anti-Graft and Corrupt Warren Rex H. Liong
Practices Act, paragraphs (e) Pharmally Pharmaceutical directors and
and (g) officers
Michael Yang
Lin Weixiong
Violations Of Plunder Law – Christopher Lloyd Lao

Section 2 Of Republic Act No. Warren Rex H. Liong
7080 (An Act Defining And Linconn Ong
Penalizing The Crime Of Mohit Dargani
Plunder) As Amended By Ra Twinkle Dargani
7659 Krizle Grace Mago
Huang Tzu Yen
Michael Yang
Lin Weixiong
Estafa, Art. 315 of the Revised Pharmally Pharmaceutical

Penal Code - Krizle Grace Mago, Mohit Dargani
Frauds Against the Public Christopher Lloyd Lao

Treasury and Similar Offenses Warren Rex H. Liong
(Art. 213, Revised Penal Code,
as amended by RA 10951
Perjury/False Testimony, Michael Yang

under Art. 183, Revised Penal Pharmally Pharmaceutical- Linconn Ong,
Code Krizle Grace Mago, Mohit Dargani
Rose Nono Lin
Falsification of Public Warren Rex H. Liong

Documents, under Art. 171 of Jorge L. Mendoza
the Revised Penal Code, as Mervin Ian D. Tanquintic
amended by Republic Act No.
10951;
Violation of Bayanihan to Heal Michael Yang

as One Act (Republic Act No. Lin Weixiong
11469, Sec. 6(c) Linconn Ong
Pharmally Pharmaceutical - Linconn Ong,
Mohit Dargani, Krizle Grace Mago
Disobedience to Summons Pharmally Pharmaceutical - Linconn Ong,
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Issued by Congress, under Mohit Dargani
Art. 150, Revised Penal Code Michael Yang
Violations of the Revised Pharmally Pharmaceutical Corporation

Corporation Code, Section Huang Tzu Yen
166. (Acting as Intermediaries Twinkle Dargani
for Graft and Corrupt
Mohit Dargani
Practices)
Linconn Ong
Krizle Grace Mago
Lin Weixiong
Violations of the Government Christopher Lloyd A. Lao

Procurement Reform Act Warren Rex H. Liong
(Republic Act No. 9184), Huang Tzu Yen
Article XXI (Penal Clause),
Twinkle Dargani
Sections 65 (a) (5) and (b) (4)
Mohit Dargani
Linconn Ong
Krizle Grace Mago
Lin Weixiong
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V. NOT QUITE THE EPILOGUE YET
As public officials we have all sworn an oath to defend and protect our people
and that is what we are doing in this committee… we are doing our job. This is not
personal.
We the senators are representatives of the people and we want to find out the
truth and account for every single, precious, hard- earned centavo. We cannot shirk
from our responsibility to those who have given us mandates to perform our duties;
we cannot turn a blind eye to the Constitution which commands us to perform our
function. We cannot violate our oaths.
How do you betray your own country? Our Revised Penal Code punishes
Treason- levying war against your country, or adhering to the enemy, giving them aid
and comfort. That is a fact.
This Partial Report sadly gives us a painful, if not horrific, example of treason
when there is no armed conflict.
The country is already beset by a deadly pandemic – an ENEMY, which has
made millions of people sick, killed thousands, destroyed livelihoods, bankrupted
businesses, stopped the schools, and disrupted our lives. What the people needed was
for their leaders to come up with a plan for a strong response to the pandemic,
providing testing, hospital beds, medicines, and the most basic supplies to allow them
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to survive this terror-filled time, securing vaccines from abroad immediately and in
large quantities, and supporting those who had become jobless, impoverished, and
hungry.
Instead, an international survey measuring the Covid response and recovery of
countries places us at the bottom of the list, likely because of the government’s
seeming knee-jerk solutions and reactionary strategy.
This happened because the leaders in whom we have placed our trust and on
whom we are supposed to lean during the most trying of times not only botched their
jobs, but worst of all, turned a blind eye to graft and corrupt practices in the
procurement of life-saving supplies for our frontliners - the health workers who are
the heroes of this pandemic.
Instead of ensuring that crucial supplies were made available, the officials
responsible lined their pockets, acquiring grossly over-priced equipment for
stockpiling, favoring an unqualified, undercapitalized company which was exceedingly
assisted by the foreign citizen Presidential Adviser on the economy who turned out to
be so influential in the critical acquisition of supplies favoring his supplier-friends
abroad. There is always an opportunity in crisis, indeed.
Instead of assisting the Senate in properly performing its job in investigating
malfeasance in government, the president chose to discredit COA, threaten the Senate
and the senators, erected obstacles, and abused his power by preventing the
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appearance of executive department officials. All to prevent a co-equal branch from
discovering the truth, from exposing graft and corruption, and from making known to
the people the atrocity of the misdeeds of certain officials in this administration
The nation has been betrayed. While millions are unemployed, have become
poorer and hungrier, are desperate even for just a glimmer of hope, what this
administration has done is to exacerbate the already execrable and hopeless state the
people are all in. None can be more unforgivable. When history is finally written about
this moment in our journey as a nation, it will be said that we were the most
unfortunate, the most ill-starred, the most blighted to have lived through this
maladministration.
The tragedy in all of these is this realization: that all these acts of malfeasance,
misfeasance, and/or nonfeasance were consummated and undertaken with
brazenness under the nose of the President. The amounts involved in the dirty
transactions were enormous, producing a stench that would have been impossible to
ignore in Malacanang. The President as Chief Executive should have known what his
appointees and friends were doing. If he did not know prior to the Senate
investigation, then it certainly came to his attention when the hearings were
underway, and instead of investigating the matter or supporting any such
investigation, he chose to defend and protect those closest to him who had dipped
their fingers into the coffers of the nation. To make it more egregious, it happened
at a time when our people needed the resources of the government the most and
when their lives depended on it. Clearly, the following public officials violated the law
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in illegally favoring an underfunded and unqualified supplier: PS-DBM OIC Christopher
Lloyd A. Lao and Atty. Warren Rex H. Liong. Likewise, in cahoots with the
aforementioned public officials are the following private persons who broke the law:
Pharmally Pharmaceutical Corporation, Huang Tzu Yen, Mohit Dargani, Twinkle
Dargani, Linconn Ong, Krizele Grace Mago, Gerald T. Cruz, Rose Nono Lin, Lin
Weixiong, and Michael Yang.
The President thus betrayed the public trust, in violation of his oath of office
under the 1987 Constitution by, among others:
A. appointing Michael Yang, a foreign national, as “Economic Adviser to the
President” in 2018. Yang then introduced numerous Chinese suppliers with
whom the government transacted and in the process enriched himself
immensely;
B. accepting that an undercapitalized corporation owned by a Taiwanese fugitive,
and with proven ties to Michael Yang, had dominance over pandemic
procurement of COVID-19 supplies;
C. seeking to discredit COA, whose Constitutional duty it is to conduct an audit of
all government expenditures, and which had previously flagged the anomalous
transaction, and through threats, prevent it from functioning;
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D. trying to discredit the credibility of the Senate by publicly attacking, maligning,
and disrespecting the Senate as an institution, a co-equal branch of
government, and its members duly performing their duties, and in doing so
attempting to render inutile the Senate’s role in investigating corruption;
E. ordering the issuance of a patently illegal memorandum preventing his cabinet
members and other officials of his administration from attending the hearings;
and
F. refusing to run after his appointees despite calls from the public and the Senate
to compel their attendance, in order to further the search for truth,; failing to
hold accountable these appointees for one of the biggest plunders of the
Philippines' coffers in recent history.
The most troubling question remains - why was the President so quick to defend
those closest to him once their names were linked to the anomaly and then so eager
to discredit the Senate investigation, prevent his appointees from cooperating, and
absolve them of any liability? Why the massive attack and offensive based on false
and unfounded accusations against a co-equal branch of government that was merely
doing its job to protect the country not only from the unseen enemy that is COVID-
19, but also from perfidious enemies from within who deprived, for the sake of a
greedy few, the Filipino people of the protection and succor that they needed during
the most trying time of their lives. Unfortunately, based on the President’s own
behavior, one cannot help but conclude that he was aware of, allowed, and condoned
110
the misdeeds of his closest associates and appointees. For this, he must be held
accountable.
As responsible citizens, we cannot sit idly by and say that this is not our
problem. On the contrary; to not say anything, to not do anything is to be complicit
in this heinousness. Not to act is to indict ourselves as a people, who during a time of
crisis, insecurity, poverty, and perdition chose not to confront and punish the corrupt,
but tolerate brutal inhumanity.
Respectfully submitted:
RICHARD J. GORDON
Chairman
Members
SONNY ANGARA PANFILO M. LACSON

Vice Chairperson
EMMANUEL “Manny” D. PACQUIAO GRACE POE
111
CYNTHIA A. VILLAR WIN GATCHALIAN
AQUILINO “Koko” PIMENTEL III MANUEL “Lito” M. LAPID
PIA S. CAYETANO CHRISTOPHER LAWRENCE T. GO
RAMON Bong REVILLA Jr. IMEE R. MARCOS
FRANCIS “Tol” N. TOLENTINO RISA HONTIVEROS
FRANCIS “Kiko” PANGILINAN LEILA M. DE LIMA
FRANKLIN M. DRILON JUAN MIGUEL “Migz” F. ZUBIRI
112
RALPH G. RECTO
113

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EIGHTEENTH CONGRESS OF THE PHILIPPINES )

REPUBLIC OF THE PHILIPPINES )

COMMITTEE REPORT NO. _______

Submitted by the Committee on Accountability of Public Officers and

2020 COA REPORT AND OTHER ISSUES RELATED TO BUDGET UTILIZATION OF

Privilege Speech of Senator Risa Hontiveros entitled, “MANDATE OF THE

Recommending approval of the Committee Report.

Sponsor: Senator Richard J. Gordon

The Committee on Accountability of Public Officers and Investigations (Blue Ribbon)

has conducted an inquiry, in aid of legislation, on the alleged misfeasance, malfeasance,

The Committee on Accountability of Public Officers and Investigations (Blue Ribbon)

Recommending the adoption of the recommendations contained therein.

PARTIAL COMMITTEE REPORT

“Pity the nation whose people are sheep

-“PITY THE NATION”

V. EPILOGUE 106 to 111

1. The Senate Committee on Accountability of Public Officers and

Investigations (“Blue Ribbon Committee”), in advance and preliminary to a complete

Especially its Expenditures in the Fight Against COVID-19 Pandemic.

2. The Blue Ribbon Committee, motu proprio, pursues this investigation in

aid of legislation in accordance with its mandate, to wit:

“The Committee, in aid of legislation, shall have jurisdiction over all

(10%)3; the worst since 1947 or close to a century.

4. Unsurprisingly, the Philippines’ pandemic response has garnered distressing

2022 or early 2023.8

5. It is thus apparent that one of the Philippines’ prime concerns ought to be

prostrated healthcare system; credit ratings; foreign direct investments; job-generation;

emergencies, and to live lives beyond mere daily survival.

Philippines’ vision of a just and humane society.

7. Amidst massive corruption, the Senate Blue Ribbon Committee proceeds

unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of

government funds and properties.”10

8.1. Government Procurement Reform Act11;

9. The Senate Blue Ribbon Committee’s proceedings have uncovered

Service-Department of Budget and Management (“PS-DBM”) such as its former Office-in-

of the highest officials in the executive branch of the national government.

10. The pre-meditated plunder commences with appointing an all-in-one

highly-lucrative government posting. The once-in-a-century pandemic must have come

ang sambayanan ay nagdurusa sa hagupit ng mala-impyernong pamumuhay. As

Lloyd Christopher Lao at PS-DBM.

President and an erstwhile dubiously-appointed economic adviser despite being a foreign

discovered that in almost a quarter of a century of staying in the Philippines, conducting

paying a measly amount of Seven Thousand Philippine Pesos (P7,600.00).19 Financing

Yang Hong Ming aka Michael Yang.

international criminal drug syndicates, needed to erase his fingerprints in the

Philippines by ensuring crucial positions in the conspiracy are held by long-standing

from questionably legitimate health- supplier/corporations and select opportunistic

opportunities for immoral pecuniary gain.

of lucre - or fruits of corruption - in a time of pandemic. This is Pharmally

Pharmaceutical Corporation (“Pharmally”).

from his department to PS-DBM22 to hasten the purchase of much-needed supplies

issued an RFQ to the undercapitalized Pharmally Pharmaceutical Corporation. On the one

Francisco Duque III.

17. As the Senate investigation unfolded, revealing the participation of well-

the ongoing proceedings.

19. When the Senate (a co-equal branch of government) investigations started

investigation, attempting to discredit a co-equal branch of the government. Duterte