PhilHealth Operations Unaffected by Idle Fund Transfer, Says Recto

Manila: Executive Secretary Ralph Recto has asserted that the operations of the Philippine Health Insurance Corporation (PhilHealth) remained unaffected following the transfer of its idle funds. Recto addressed concerns amidst a motion for reconsideration filed with the Office of the Ombudsman, which aims to overturn the dismissal of graft and plunder complaints related to the fund transfer.

According to Philippines News Agency, the complaints involve allegations against Recto and former PhilHealth president Emmanuel Ledesma regarding the transfer of PHP60 billion in surplus funds from the state insurer to the national treasury. Recto defended the government's actions, stating they were in line with existing fiscal management policies and supported by explanations from relevant agencies.

Recto emphasized that the fund transfer did not impact PhilHealth's operations or its delivery of services. He explained that the transferred funds originated from excess government contributions and reserve funds that PhilHealth was not utilizing at the time.

The complainants argued that the Ombudsman overlooked the broader context of the fund transfer, including Recto's previous roles as a representative of Batangas' 6th District and as a member of the bicameral conference committee on the 2024 General Appropriation Act. Recto, however, reiterated that the benefits and services provided by PhilHealth to its members were not diminished due to the fund transfer.

Recto further highlighted the government's policy of optimizing the use of idle public funds to support priority programs and reduce borrowing. He dismissed allegations linking him to projects supposedly funded by the transferred resources, clarifying that budget allocation is determined by Congress and executed by the Department of Budget and Management.

Recto also downplayed the motion for reconsideration, noting the lack of new arguments presented by the complainants. Nonetheless, he expressed respect for the democratic and legal processes, acknowledging the broader political context surrounding the issue.