The Supreme Court ruled that determining the liability of former Finance Secretary and now-Executive Secretary Ralph Recto and other officials for technical malversation or plunder is “improper for resolution” in a certiorari case.
The Court emphasized that the only issue before it was the legality of the government issuances.
“Such matters are improper for resolution in this case. The only issue properly before it is the validity of the issuances and whether they were issued with grave abuse of discretion amounting to a lack or excess of jurisdiction,” it stated.
The justices also held that a finance secretary has no authority to augment any item in the General Appropriations Act, a power reserved exclusively for the president.
Recto had signed a 2024 DOF circular directing PhilHealth to transfer ₱89.9 billion in reserve funds, relying on a special budget provision allowing the use of fund balances from government-owned or controlled corporations.
The move drew criticism, with lawmakers questioning why PhilHealth held excess reserves while members faced unpaid hospital bills.
Recto said he respects the ruling but stood by the policy.
“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,” he said.
“We also stress that PhilHealth’s ability to deliver services was never impaired by the fund transfer and no member contributions were taken.”
PhilHealth remitted ₱60 billion to the National Treasury from May to October before the Supreme Court halted the remaining ₱29.9 billion transfer through a temporary restraining order.
The Court also clarified that “Special Provision (1)d is void because it impliedly repeals Section 11 of the Universal Health Care Act (UHCA) and the Sin Tax Laws.”
Recto assured that the administration remains committed to maximizing government resources, particularly in healthcare. The Office of the Solicitor General said it will review the decision and consider filing a motion for reconsideration.