Malacañang on Friday said it respects the Supreme Court’s decision directing the return of ₱60 billion in unused PhilHealth funds that were earlier transferred to the National Treasury and allegedly linked to irregular flood control projects.
Executive Secretary Ralph Recto assured that the executive branch will follow the ruling.
“Tulad ng lagi naming sinasabi bago pa man ang desisyon, susunod po ang Ehekutibo sa kautusan ng Korte Suprema,” he said, noting that the transfer was done in compliance with Congress’ directive to use idle GOCC funds for public benefit.
The SC unanimously ruled that the remitted amount formed part of ₱89.9 billion in excess PhilHealth reserves that should not have been moved.
Recto reiterated that the Executive merely followed the 2024 General Appropriations Act: “We reiterate that the Executive simply complied with the congressional mandate… and that the Department of Finance’s role is solely in revenue generation and debt and deficit management.”
He defended the decision as a practical fiscal move: “We believed then, and still believe, that the directive was a common-sense approach to optimize government coffers without resorting to additional borrowing or new taxes.”
Recto added that multiple agencies—including OGCC, GCG, and COA—had cleared the transfer, and PhilHealth’s board had approved it.
“PhilHealth’s ability to deliver services was never impaired… no member contributions were taken,” he said, pointing to expanded benefit packages and the rollout of zero-balance billing as proof.
He also recalled that President Bongbong Marcos had already ordered steps to reimburse the funds in September.
“Inaasahan namin na lalo pang palalawakin ng PhilHealth ang kanilang mga benepisyo,” Recto added, reaffirming the administration’s commitment to ensuring accessible healthcare.
Meanwhile, PCO Acting Secretary Dave Gomez said the Office of the Solicitor General will study the ruling and determine whether to file a motion for reconsideration.
“We note that majority of the members of the high tribunal declared as unconstitutional a provision of the GAA 2024… the executive simply complied with the congressional mandate,” Gomez said.