SC Urged to Issue TRO on P90B PhilHealth Funds

The Supreme Court (SC) has been urged to immediately issue a temporary restraining order (TRO) to halt the transfer of P89.9 billion in PhilHealth funds to the national treasury, as delaying the decision may lead to the funds’ dissipation, a lawmaker said Thursday.

A total of P20 billion was already transferred to the national treasury in May, along with another P10 billion in August.

The third tranche, amounting to P30 billion, was reportedly transmitted last week, and the remaining funds are scheduled to be diverted in November.

Cagayan de Oro Rep. Rufus Rodriguez stated that if the SC waits until 14 January—the date set for the hearing on petitions questioning the legality of the PhilHealth fund transfer—it may fail to protect the reserves from further depletion.

“Unless a restraining order is issued immediately, PhilHealth might turn over the remaining multi-billion balance to the treasury as early as next weekend,” he stressed.

“Next week will already be November, so the window for the Supreme Court to prevent the handover of the balance is closing,” Rodriguez, a lawyer, emphasized.

“Perhaps the entire fund will be used up by January. What's the use of grass if the horse is dead? The hearing will have lost its purpose and usefulness,” he pointed out.

Health groups and others, including 1Sambayan, composed of retired SC Justice Antonio Carpio and Senator Aquilino "Koko" Pimentel III, have challenged the constitutionality of the PhilHealth fund transfer before the high court.

The petitioners argued that transferring PhilHealth funds to the national treasury constitutes technical malversation or plunder, as proponents led by the Department of Finance applied public funds to a purpose other than that for which the PhilHealth funds were appropriated.

The group stressed that no provision in the Constitution authorizes the transfer of funds sourced from public taxes for specific purposes to be used for any other purpose except that specified by law.

Carpio even warned that Finance Secretary Ralph Recto would have to shell out P89.9 billion from his own pocket to cover the transfer if the SC declares it unconstitutional.

The fund transfer follows Memorandum Circular No. 003-2024 issued by the DoF, instructing government-owned and -controlled corporations, including PhilHealth, to divert their idle funds to the national treasury to finance unprogrammed appropriations in Republic Act No. 11975, or the 2024 General Appropriations Act.

The P89.9 billion in excess PhilHealth funds were accumulated over the last three years from the state-run health insurer's dormant funds.

Some groups have raised suspicions that the unprogrammed appropriations would be used to finance the Maharlika Investment Fund, the country's sovereign fund.

Rodriguez urged President Ferdinand Marcos Jr. to instruct the DoF and the Department of Budget and Management to withhold the use of the transferred PhilHealth funds in deference to the SC and also ask PhilHealth to halt any further remittance.

“Let us respect the high court. Let us await its decision on this issue,” he said.

Rodriguez warned that executives who use the funds while the petitions are pending may be held liable and be subject to accusations of bad faith and lack of prudence.