2 firms in mask, shield controversy see profits surge

MANILA, Philippines — Pharmally Pharmaceutical Corp. and Philippine Blue Cross Biotech Corp., companies at the center of the Commission on Audit (COA)’s report on questionable use of COVID-19 funds by the Department of Health (DOH), saw their respective incomes balloon in 2020, according to documents from the Securities and Exchange Commission (SEC).

Pharmally, for instance, saw its net income swell to P264.6 million in 2020 from a net loss of P25.5 million in 2019. Its sales reached P7.5 billion in 2020 from zero in 2019.

Furthermore, its total current assets grew to P271.8 million in 2020 from P599,450 a year ago.

The little known company had a paid-up capital of P625,000 when it registered with the SEC in September 2019, according to the company’s General Information Sheet.

Philippine Blue Cross Biotech, meanwhile, saw its net income balloon to P12.2 million in 2020 from just P260,666 a year ago. Sales likewise tripled to P908.5 million from P261.8 million a year ago, SEC documents also showed.

The company, registered in 1997, is engaged in the importation, exportation, buying and selling of diagnostic and hospital equipment including x-ray, imaging and other tools.

The COA earlier flagged the DOH for deficiencies involving some P67.323 billion worth of public funds.

The Senate launched an investigation on the COA reports, including how Pharmally was able to corner P8.7 billion in supply contracts, including the supply of personal protective equipment, masks, face shields and RT-PCR test kits.

Sen. Franklin Drilon had questioned Pharmally Pharmaceutical’s bagging of P8.68 billion worth of contracts. Incorporated only in September 2019, Pharmally has a paid-up capital of only P625,000, obviously insufficient to assume the huge risk for the delivery of P8.68 billion worth of procurement, he said.

“Official records will show that it sold face masks at a whopping P27.72, when other suppliers sold the same to PS-DBM at P13.50, P16.00, and P17.50 for the same period. It sold test kits at P1,720 when it could be bought at P925. It sold PPEs at P1,910 each when its market cost was at P945,” Drilon said.

He also questioned the government’s procurement of 1.32 million face shields from a single company, which was Philippine Blue Cross Biotech.

Aside from face shields, Blue Cross Biotech was able to bag a total of P432.17 million in contracts from PS-DBM, the opposition senator said.