Philippine Senator Richard Gordon released on 1 February the draft report of the Senate Blue Ribbon Committee which investigated the anomalous US$920 million Covid-19 government supply contracts with Pharmally Pharmaceutical Corporation. The report recommends filing of plunder, graft and other criminal charges against Department of Health Secretary Francisco Duque III, Department of Budget and Management Undersecretary Lloyd Christopher Lao, Deputy Ombudsman Rex Warren Liong, Duterte economic adviser Michael Yang and Pharmally top executives.

The report also recommended filing charges against President Rodrigo Duterte when he steps down from office for the betrayal of public trust, for his hand in allowing his friends to rob government coffers, as well as for obstructing the investigations of the Commission on Audit and the Philippine Senate.

The Senate Blue Ribbon Committee uncovered several anomalous transactions, including the granting of at least eight government supply contracts worth US$226 million to Pharmally, based on the backing of Duterte adviser Michael Yang. Pharmally did not have sufficient capital, was not a manufacturer of the supplies and would just serve as a middleman for the supplies coming from China.

The report revealed that personal protective equipment supplied by Pharmally were found to be about 102% overpriced, while Covid-19 test kits were 86% overpriced. The company also supplied expired face shields by tampering the expiration dates on the boxes.

Pharmally used Armed Forces of the Philippines planes to transport the supplies from China. And despite pocketing billions of pesos from the government supply contracts, the company and its executives did not pay Philippine taxes. It was also reported that government officials signed for deliveries which never arrived.

Commenting on the Senate investigation, the Communist Party of the Philippines said, “It is impossible that Rodrigo Duterte has nothing to do with the grand conspiracy… He is in the center of the swindle perpetrated mainly by his Chinese businessman friend Michael Yang, officials of Pharmally and officials of the Department of Budget and Management.”

A majority of the 24-member Philippine Senate would still need to approve the report of the Blue Ribbon Committee before it becomes official. Sen. Gordon said 11 senators have already committed to sign the report but also pointed out that at least three are hesitating to sign.

Majority of the Senate are known Duterte associates, including Senators Bong Go, Imee Marcos, Ronald dela Rosa, Pia Cayetano and Francis Tolentino.