Executive Secretary Ralph Recto is facing new complaints, including plunder, over the transfer of ₱60 billion in reserve funds of the Philippine Health Insurance Corporation (PhilHealth) to the national treasury when he was still finance chief in 2024—a move later ruled unconstitutional by the Supreme Court.
A group of doctors and lawyers filed complaints for graft, technical malversation and grave misconduct before the Office of the Ombudsman on Thursday, January 15. Also named as respondent was former PhilHealth President and CEO Emmanuel Ledesma.
“There is no doubt that the respondents willfully, intentionally and illegally transfer PhilHealth’s reserve funds to the National Treasury to fund unprogrammed appropriations, thus, a clear diversion of the funds from the very purpose for which they have been originally appropriated,” the complaint stated.
“There is an immense injury to the Filipino people as the ₱60 billion could have instead been used for the betterment of health services or increase the scope of the Program’s benefits and to decrease the amount of members’ contributions as stipulated in RA 11223,” it added, referring to the Universal Health Care law.
In December, the Supreme Court ordered the return of the ₱60 billion to PhilHealth, directed that it be included in the 2026 General Appropriations Act, and stopped the transfer of the remaining ₱29.9 billion to the treasury.
“Ang sinasabi natin na ang mga naka-reserve para sa PhilHealth ay para sa PhilHealth, and hindi para sa ibang proyekto na some of them are even, since it is unprogrammed, it may be for insertions, it may be for other projects that are for the benefit of some officials,” complainant Rodel Tanton said.
Tanton acknowledged that the high court noted Recto may have acted in good faith, but argued this does not rule out liability.
“There can be gross inexcusable negligence,” he said.
While the Supreme Court declined to rule on Recto’s criminal liability for technical malversation and plunder, citing that it is not a trier of facts, Tanton said this prompted complainants to pursue criminal action.
A separate group had earlier filed similar complaints against Recto and Ledesma in December.