Press Release
September 29, 2020

Hontiveros bares contracts of DBM's overpriced, China-made PPEs

Senator Risa Hontiveros on Tuesday revealed the 11 contracts entered into by the Department of Budget and Management (DBM) to procure overpriced Personal Protective Equipment (PPE) in April and May.

"You want evidence? Here are 11 pieces. DBM should plainly explain these contracts. Huwag nilang linlangin ang taumbayan gamit ang pagpapa-ikot ng maling impormasyon. What we need is clarity," the senator said.

"Representative Mike Defensor also came out to defend DBM, claiming that what the agency procured was cheaper than that procured by the previous administration. If that's the case, then pa-imbestigahan at kasuhan nila. As Senator during the current administration, I am simply exercising our Congressional oversight. May nakita kaming mali, kaya kinukwestiyon," she also said.

Hontiveros further presented a table of the contracts studied from April to May, which details the name of the manufacturing company, the price of each PPE set, the number of units acquired, and the total money spent by the agency.

Date of NOA Contractor Unit Price Number of Units Total Price
April 3, 2020 Xuzhou Const. Machinery Group  P2,000 less 12% VAT P1,785.71 250,000 P446,428,571.43
April 3, 2020 Wen Hua Dev't Industrial Co., Ltd. P1,980.50 less 12% VAT P1,768.30 42,000 P74,268,674.99
April 7, 2020 Chushen Company Ltd. P1979.56 less 12% VAT P1,767.46   588,000 P1,039,266,480
April 22, 2020 Nikka Trading P1,980.20  50,000 P99,010,000
April 24, 2020 Pacific Field (Hong Kong) Ltd. P1,900.00 28,000 P53,200,000
May 6, 2020  Pharmally Pharmaceutical Corporation P1,910.00 2,000,000 P3,820,000,000
May 7, 2020 Xuzhou Const. Machinery Group Imp. and Exp. Co. Ltd. P1,898.00 1,000,000  P1,898,000,000
May 11, 2020  Wen Hua Dev't Industrial Co., Ltd. P1,923.00 less 12% VAT P1,716.96 800,000 P1,373,568,000
May 11, 2020  Warmus Trading P1,898.00 20,000 P37,960,000
May 11, 2020 Shanghai Puheng Medical Equipment Co. Ltd. P1,923.00 less 12% VAT P1,716.96 200,000 P343,392,000
May 19, 2020  Hafid N' Erasmus Corporation P1,700.00 30,000 P51,000,000

The table revealed that DBM did sign four contracts with local companies, including Hafid N' Erasmus, which had the cheapest PPE cost at only P1,700. However, DBM signed more contracts with Chinese companies, whose costs were higher.

"Huwag din sabihin ng DBM na walang kakayanan nung umpisa ng pandemya ang lokal na mga kumpanya. As early as February 6, binalita na na ang Bataan-based firm called Medtex ay kayang gumawa ng 2 million face masks monthly. At meron din silang sister company under the Medtec Group of Companies na nagproproduce ng PPEs. Bakit hindi sa mga katulad nila nag-negotiate ang DBM? Bakit inuna ang foreign companies?" the senator shared.

Hontiveros also revealed that the Department of Health (DOH) released Department Circular No. 2020-0157 and 2020-0144, instigating a price freeze for supplies needed for our COVID-19 response, covering March 23 to April 13. This price freeze meant that the eight components of procured PPE sets could only cost a maximum total of P945.

"Of the 11 contracts, three of these are in the same time period as DOH's price freeze. Almost P1,000 lang dapat ang cost ng isang PPE set kung sa local companies binili. But no, DBM opted to transact with Chinese firms. Kaya kung tutuusin, ang P1 billion overpricing is highly conservative. Mukhang mas malaki at mas malalim pa ang pangungupit," Hontiveros said.

"We have so many questions for the DBM, and again, we do need answers to better inform our budget deliberations in the Senate. Dapat narin maumpisahan na ang audit ng COVID-19 funds hindi lang para sa kaduda-dudang mga PPEs na ito, pati narin sa lahat na ginastos ng gobyerno," Hontiveros concluded.

Please see attached contracts in google link

Access contracts here:


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