Senate panel calls for filing of charges, deportation for Michael Yang
MANILA, Philippines — The Senate Blue Ribbon Committee has recommended on Tuesday the filing of criminal charges and deportation of former presidential economic adviser Michael Yang for his role in the multibillion-peso deal between Pharmally Pharmaceutical Corp. and the budget department, among other criminal violations.
Yang was earlier identified as Pharmally's financier and guarantor to Chinese suppliers. The start-up company— which only had P625,000 in paid-up capital— bagged the largest of pandemic contracts from the Philippine government and was accused of selling "overpriced" medical supplies.
According to a 113-page partial committee report on the investigation on the government's pandemic spending, the panel claimed that Yang's violation of several laws, including tax evasion, "justifies the filing of criminal charges, his declaration as an undesirable alien and immediate deportation."
“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,” the report, a copy of which was shared with reporters through Viber, said.
Based on evidence gathered from hearings, Yang owns various properties across the country, including Davao mall chain DCLA and other buildings in Manila and Clark, Pampanga.
The report also claimed that Yang is liable for criminal contempt since he evaded questions and lied to the panel, which was chaired by Senator Richard Gordon.
"He refuses to tell the Committee the source of his money, the extent of his businesses and holdings, how much taxes he has paid," the report read.
“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 Php 288,000 for the year, and paying a measly amount of Php 7,600.00. 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," it continued.
The partial report, which only has the signature of Sen. Gordon so far, said that it will release a more comprehensive report in the coming days.
Panel says President Duterte may face charges for role in controversy
While President Rodrigo Duterte is immune to being sued while in office, the panel said that charges may be considered against him when he steps down.
"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," the report read.
"In the course of doing so, the President attempted to diminish the Senate and COA (Commission on Audit), institutions that safeguard our democracy and integrity," it added.
The report alleged that the President "betrayed the public trust", which runs counter to his oath of office under the 1987 Constitution because he appointed Michael Yang as an economic adviser to the president in 2018; discredited the credibility of the COA and Senate; and ordered a "patently-illegal" memorandum barring his cabinet and other officials from attending the hearings, among others.
"Based on the President’s own behavior, one cannot help but conclude that he was aware of, allowed, and condoned the misdeeds of his closest associates and appointees. For this, he must be held accountable," the report said.
Panel recommends filing of charges vs. two former gov't officials
The Blue Ribbon Committee also called for the filing of multiple administrative and criminal charges against two former officials of the Procurement Service of the Department of Budget and Management (PS-DBM), namely Christopher Lao and Warren Rex Liong, for their role in the controversial deal with Pharmally.
The report suggested the filing of anti-graft and corruption, plunder, tax evasion, and procurement violation cases against former PS-DBM officer-in-charge Lao and former procurement director Liong.
Liong is also facing an additional document falsification case.
The panel said that Lao and Liong facilitated the partnership between Pharmally and PS-DBM.
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