Recto, former PhilHealth chief slapped with plunder, graft raps over P60 billion fund transfer
Multiple charges have been filed against Executive Secretary Ralph Recto and former PhilHealth president Emmanuel Ledesma Jr., in connection with the transfer of P60 billion PhilHealth funds to the national treasury.
The Philippine STAR reported that advocacy group Save the Philippines Coalition urged the Ombudsman to investigate Recto and Ledesma for plunder, graft, technical malversation, and grave misconduct.
According to the complainants, the return of PhilHealth’s "excess" funds to the national treasury is unconstitutional as per the recent ruling of the Supreme Court. They also asked for its return through the 2026 General Appropriations Act.
The complainants alleged that Recto and Ledesma went on with the fund transfer despite the prohibition under existing laws.
They noted that PhilHealth should maintain reserve funds up to a ceiling equivalent to two years of projected program expenses under Section 11 of RA 11223 or the Universal Health Care Act. 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.
Under Section 27 of RA 7875 or the National Health Insurance Act of 1995 that chartered PhilHealth, 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 are seeking to hold Recto, then-Finance Secretary, liable for issuing Department of Finance Circular No. 003-2024, which included billions of PhilHealth funds as among the reserve funds of government-owned and controlled corporations moved to the national treasury.
The complainants are also finding fault in Ledesma for agreeing with Recto's “unlawful directive.”
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.
Recto to fully cooperate in the investigation
In a statement released on Monday, Dec. 22, Recto said he would fully cooperate in the probe.
“I respect every citizen’s right to seek redress before the courts and will fully cooperate with the Office of the Ombudsman during the conduct of preliminary investigation,” Recto told reporters in a text message, according to the Philippine News Agency.
“I welcome the opportunity to clarify the issues raised by the Save the Philippines Coalition, with representation by the Office of the Solicitor General.”
Recto noted he "will not get distracted by political noise."
"The work of improving government performance and services is my priority. I will let my lawyers address those issues," he said.