FINANCE Secretary Ralph Recto faces serious allegations of “technical malversation and/or plunder” after ordering the transfer of P89.9 billion in excess funds from the Philippine Health Insurance Corporation (PhilHealth) to the national treasury.

This controversial decision is now the subject of a third case filed at the Supreme Court by the 1Sambayan Coalition, along with members of the University of the Philippines Law Class of 1975, led by retired Senior Associate Justice Antonio Carpio.

The 45-page petition seeks to declare Recto’s order unconstitutional, as well as the provision in the 2024 General Appropriations Act (GAA) that authorized the transfer.

Notable petitioners include former Ombudsman Conchita Carpio Morales, former Senator Richard Gordon, and various members of the legal and academic community.

The petition argues that transferring special PhilHealth funds to the national treasury constitutes technical malversation, as it applies public funds to a purpose other than that for which they were originally appropriated. It cites a 2006 Supreme Court ruling which defines technical malversation as the misapplication of public funds by an accountable officer.

The petition highlights that Recto's actions diverted PhilHealth funds, which are intended for specific public health uses, to different purposes without lawful abandonment or fulfillment of their original intent.

“There shall be no reallocation of PhilHealth funds unless abandoned or their purpose has been accomplished,” the document states.

In addition to technical malversation, the petition alleges plunder, claiming that public officials involved have accumulated ill-gotten wealth through a series of misappropriations of public funds.

Carpio noted that the petition is grounded in constitutional violations, particularly the prohibition against laws that allow the transfer of appropriations and the requirement that special funds can only be used for their intended purpose.

Recto responded to the allegations, asserting that his office acted according to the directives of Congress as outlined in the GAA 2024, and expressed respect for the Supreme Court’s forthcoming decision.

The Supreme Court has scheduled oral arguments for January 14, 2025, on two related cases questioning the legality of the PhilHealth fund transfer. Petitioners are also requesting a temporary restraining order (TRO) to prevent further transfers of PhilHealth funds, citing potential irreparable harm if the funds are spent.

Former Commission on Audit Commissioner Heidi Mendoza joined the press conference, emphasizing the risks associated with unprogrammed appropriations and the importance of a TRO to curb “dangerous budget practices.”

As the Bureau of the Treasury prepares to receive a third tranche of P30 billion from PhilHealth, concerns are growing that the case may become moot before a ruling is issued.(CMM)

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