Recto faces second plunder rap over PhilHealth fund transfer

National

FRESH charges for plunder and grave misconduct have been filed against Executive Secretary Ralph Recto and former PhilHealth head Emmanuel Ledesma Jr. over the transfer of P60 billion to national treasury.

A coalition of doctors, health advocates, and lawyers led by Rodel Taton, dean of San Sebastian College-Recoletos Graduate School of Law, filed the complaint before the Office of the Ombudsman on Thursday, Jan. 15.

In a 31-page petition, the group asked the antigraft body to conduct a preliminary investigation to determine Recto and Ledesma’s possible criminal, civil, and administrative liability, including grave misconduct.

The coalition argued that the transfer, which was declared unconstitutional by the Supreme Court, violated Republic Act No. 7875, or the National Health Insurance Act of 1995, as amended, and Republic Act No. 11223, or the Universal Health Care Act.

The complainants alleged that Recto and Ledesma, fully aware of the legal prohibitions, acted deliberately and maliciously in carrying out the transfer of PhilHealth reserve funds.

The petition cited Department Circular No. 003-2024, issued by Recto in 2024 while serving as finance secretary, which directed government-owned and controlled corporations including PhilHealth to remit excess funds to the national treasury to fund unprogrammed appropriations under the 2024 General Appropriations Act.

The group said Ledesma willingly complied with the directive despite the explicit prohibition in RA 11223. They argued the transfer caused “immense injury to the Filipino people,” as the funds could have been used to improve health services, expand benefits, or reduce members’ contributions.

Responding to the complaint, Recto reiterated his innocence, saying in an Inquirer report, “Let me also reiterate my innocence, as opined by Supreme Court Justices, that no criminal liability may attach to me, as former Secretary of Finance, for acting in good faith and in accordance with a direct mandate from Congress in ordering the remittance of PhilHealth’s unused funds.”

He added that he respects the right of individuals or groups to seek legal remedy and remains confident that institutions will fairly evaluate any allegations. He said he will not be distracted by political noise while focusing on improving government performance and services.

The controversy dates back to December 2025, when the Save the Philippines Coalition filed similar charges. That month, the Supreme Court ordered the return of the P60 billion remitted to the national treasury and permanently barred the transfer of the remaining P29.9 billion.

The decision, penned by Associate Justice Amy Lazaro-Javier, addressed the grave abuse of discretion in the transfer but did not rule on Recto’s potential criminal liability. Four justices separately noted that Recto, as finance secretary, acted in good faith in implementing Special Provision 1(d) and that no criminal liability could attach to him.(MyTVCebu)