P60 billion transfer lands Recto, ex-PhilHealth chief in Ombudsman’s sights

National

P60 BILLION.

That’s the amount of PhilHealth reserves at the center of plunder complaints filed against Executive Secretary Ralph Recto and former PhilHealth president Emmanuel Ledesma Jr., following a Supreme Court ruling declaring the transfer of these funds to the national treasury unconstitutional.

The complaints, lodged before the Office of the Ombudsman by advocacy group Save the Philippines Coalition, also called for an investigation of Recto and Ledesma for possible violations of Republic Act 3019, the Anti-Graft and Corrupt Practices Act, as well as technical malversation under Article 220 of the Revised Penal Code.

The group urged that both officials be held administratively liable for grave misconduct. Signatories of the complaint include Irene Caballes, Elmer Jugalbot, Gerlyn Ogong, Emerita Pecson, Susan Villar, Mussolini Lidasan, Jose Jessie Olivar, and Jaime Miralles.

The coalition cited the Supreme Court ruling that struck down the P60-billion transfer and ordered the funds’ return to PhilHealth through the 2026 General Appropriations Act (GAA).

“Recto and Ledesma pushed through with the fund transfer despite existing laws explicitly prohibiting the return of PhilHealth’s Reserve Funds to the general fund of the government,” the complaint said, as quoted by Philstar.

The group also highlighted that under Section 11 of Republic Act 11223, the Universal Health Care Act, PhilHealth is required to maintain reserve funds up to a ceiling equivalent to two years of projected program expenses, and any excess should be used to enhance benefits or reduce contributions. Similarly, Section 27 of RA 7875, the National Health Insurance Act of 1995, stipulates that PhilHealth’s reserve funds can only be allocated to income-generating investments benefiting its members, and cannot be transferred to the national treasury.

The coalition specifically urged Recto to be held accountable for issuing Department of Finance Circular No. 003-2024 during his term as finance secretary, which included P89 billion of PhilHealth reserves among government-owned and controlled corporations’ funds transferred to the treasury.

Ledesma, they said, should be held equally liable for following what they described as Recto’s unlawful directive.(MyTVCebu)