Public health advocate and physician Dr. Tony Leachon formally initiated legal action on Monday, May 25, by filing plunder and technical malversation complaints with the Office of the Ombudsman against Executive Secretary Ralph Recto and various Cabinet members. The charges stem from the alleged unauthorized diversion of billions of pesos originally earmarked for national healthcare and financial deposit safeguards.
The complaint centers on the reported transfer of ₱60 billion from PhilHealth’s reserve funds to the National Treasury in 2025. Leachon argues that this reallocation flagrantly violates the Universal Health Care (UHC) Law and the Sin Tax Law, which mandate that such funds be utilized strictly for healthcare services and support for indigent patients.
According to the complaint, this fiscal maneuver exacerbated a ₱356.6-billion PhilHealth deficit recorded between 2023 and 2025.
“The damage was swift and brutal. PhilHealth’s ₱356.6 billion deficit from 2023–2025 left hospitals unpaid, cancer and dialysis programs starved, and millions of Filipinos abandoned in their hour of need,” Leachon stated.
Beyond healthcare, the suit addresses the alleged diversion of ₱107 billion from the Philippine Deposit Insurance Corporation (PDIC).
Leachon contends that tapping into these reserves undermines the safety net designed to protect bank depositors and threatens the long-term stability of the country’s financial institutions.
“These were not isolated missteps but a deliberate pattern of unconstitutional reallocation that endangered both health and financial security,” he added.
The legal challenge invokes Republic Act No. 7080, known as the Anti-Plunder Law, asserting that the scale of the fund transfers meets the criteria for ill-gotten wealth. Furthermore, the complaint cites Article 220 of the Revised Penal Code regarding technical malversation, which prohibits the unauthorized use of public funds regardless of personal gain.
“Even without proof of personal enrichment, the misuse of earmarked health and insurance funds for unauthorized purposes constitutes technical malversation,” Leachon explained.
Concluding his statement, Leachon emphasized that the filing serves as a moral stand against the perceived betrayal of public trust.
“This is not merely a legal matter but a moral one. The ₱60 billion could have saved lives, kept hospitals afloat, and brought dignity to families in despair. Instead, it was stolen from the sick and the poor. Filing these charges is a duty to the Filipino people — to restore integrity, deter future abuses, and reclaim the promise of universal health care.”