Culpability for plunder (2)

If the crime disclosed by the people will go unpunished, it will be a very bad precedent in this decade. It will mark the end of the hope of the Filipino people for a really better New Philippines.

The overriding national objective of the New Philippines to satisfy the basic needs of the Filipino people, to improve their incomes, and sustain the prudent management of the country’s resources to ensure the achievement of the goals of the New Philippines has been unnecessarily compromised.

Former finance secretary Margarito Teves, in addition to what he had earlier proposed, has also opined that the more efficient and practical approach would be for the current finance secretary to focus on increasing the efficient collection of taxes and recommending new tax measures to ensure that the country is within prudent international standards in managing its fiscal responsibilities.

The two top current fiscal managers, however, took the easy way. DBM Secretary Amenah Pangandaman simply added all the savings of government-owned and -controlled corporations of over P200 billion to fund unprogrammed appropriations to propel the national economy and sustain its growth.

Meanwhile, the opponents challenging the controversial directive of Finance Chief Ralph Recto to transfer the PhilHealth funds to the National Treasury to fund unprogrammed projects have quickly increased to a formidable force.

Among them is former Senior Associate Justice Antonio Carpio who said that remitting the excess PhilHealth funds to the National Treasury to finance unprogrammed appropriations violates the Constitution. Under the General Appropriations Act, only the President is authorized to transfer savings from one item to another in the appropriations of the executive branch.

The finance secretary has no authority to transfer savings from government-owned and -controlled corporations to the National Treasury. It is unconstitutional, for it is made to appear as if there was a delegation of the constitutional power that belongs exclusively to the President.

The two transfers and the use of idle or unused funds of PhilHealth has resulted in the technical malversation of public funds and constitutes the crime of plunder.

PhilHealth’s funds are special funds raised through taxation for a specific purpose — to finance the universal health of Filipinos — and if the finance secretary fails to recall the funds, Carpio said he shall be constrained to challenge its transfer.

Also joining the opponents are other such past officials as National Economic and Development Authority directors general Cielito Hipolito and Ernesto Pernia former Budget and Management Secretary Florencio Abad, and former Health Secretary Enrique Ona.

Senator JV Ejercito, the principal sponsor of the Universal Health Care (UHC) Law, stressed the excess PhilHealth funds could greatly help more poor patients, and called for a probe of the fund transfer.

Last Wednesday, Ejercito also asked for the head of PhilHealth CEO Emmanuel Ledesma Jr. for failing to live up to the purpose of the UHC law.

Oppositors have also warned that the transfer of funds to the National Treasury could compromise the administration’s senatorial bets’ victory in the 2025 midterm elections as the public could very well see the transfer as financing their campaign.

Political analyst Dennis Concepcion said the Supreme Court should do its part in protecting the PhilHealth funds by either issuing a TRO or ruling against the transfer altogether.

Cielo Magno, a member of the original group that had petitioned the SC to block the fund transfer, questioned the appropriateness of diverting resources intended for social insurance to fund other government programs.

A former DoF executive, who has just been named co-chair of the UN Open Government Partnership Global Summit in 2025, said the finance secretary should be reminded that a functioning social health insurance program is part of our aspirations, and taking away PhilHealth funds to finance other government programs minimizes the value of the health of Filipinos.

(To be continued)