Recto, former PhilHealth boss face plunder raps

MANILA, Philippines — Executive Secretary Ralph Recto and former Philippine Health Insurance Corp. president Emmanuel Ledesma Jr. are facing plunder charges before the Office of the Ombudsman over the transfer of P60 billion in “excess” PhilHealth funds to the national treasury.

Apart from plunder, complainant Save the Philippines Coalition also urged the ombudsman to investigate Recto and Ledesma for possible violation of
 Republic Act 3019 or the Anti-Graft and Corrupt Practices Act and for technical malversation under Article 220 of the Revised Penal Code.

The advocacy group said Recto and Ledesma must also be held administratively liable for grave misconduct.

The complaint was signed by Save the Philippines Coalition members Irene Caballes, Elmer Jugalbot, Gerlyn Ogong, Emerita Pecson, Susan Villar, Mussolini Lidasan, Jose Jessie Olivar and Jaime Miralles.

The complainants cited the recent ruling of the Supreme Court declaring the P60-billion transfer of PhilHealth’s excess funds to the national treasury as unconstitutional and ordered its return to the state insurer through the 2026 General Appropriations Act (GAA).

The complainants said 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 complainants cited Section 11 of RA 11223 or the Universal Health Care Act (UHCA), which requires PhilHealth to maintain reserve funds up to a ceiling equivalent to two years of projected program expenses.

The complainants pointed out that under Section 11 of UHCA, any excess from the reserve fund ceiling shall not be returned to the national treasury but must instead be used by PhilHealth to increase program benefits for members or decrease the amount of members’ contributions.

The complainants also cited Section 27 of RA 7875 or the National Health Insurance Act of 1995, which established PhilHealth, stating that no reserve funds of the state-owned health insurance firm shall be transferred elsewhere except to income-generating investments, which must benefit PhilHealth members.

The complainants specifically wanted Recto to be held liable for his issuance of Department of Finance (DOF) Circular No. 003-2024 during his term as finance secretary, which included P89 billion in reserve funds of PhilHealth as among the reserve funds of government-owned and controlled corporations (GOCCs) ordered transferred to the national treasury.

The complainants said Ledesma must be held liable with Recto as he acquiesced to the lattter’s “unlawful directive.” — Helen Flores