Executive Secretary Ralph Recto said he will fully cooperate with the Office of the Ombudsman following complaints over the controversial transfer of ₱60 billion in PhilHealth reserve funds to the National Treasury.
The Save the Philippines Coalition filed the complaints, accusing Recto and former PhilHealth President and CEO Emmanuel Ledesma Jr. of technical malversation, plunder, and grave misconduct in connection with the fund transfer during Recto’s tenure as Finance Secretary.
“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 said, adding that he “welcomes the opportunity to clarify the issues raised,” with representation by the Office of the Solicitor General.
“Nevertheless, I 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 added.
The controversy stems from a 2024 DOF directive transferring ₱89.9 billion in unused PhilHealth subsidies to the National Treasury.
Of this, ₱60 billion had already been remitted before the Supreme Court ruled the transfer unconstitutional, ordering the return of the ₱60 billion to PhilHealth and permanently blocking the transfer of the remaining ₱29.9 billion.
PhilHealth’s reserve funds, sourced from member contributions and government subsidies, are intended to ensure the long-term viability of benefits and operations, keeping the handling of the funds under close public and legal scrutiny.