Hold the P60B of PhilHealth, Palace urged

A senior lawmaker urged Malacañang on Wednesday to withhold the P60 billion in remitted PhilHealth funds to the national treasury, pending the Supreme Court’s final decision, which has effectively halted the transfer of the remaining excess funds of the state insurer.

Cagayan de Oro Rep. Rufus Rodriguez reiterated that officials responsible for the fund remittances and disbursements may be criminally liable if the SC would later rule that the transmittal is unconstitutional.

“Let us respect the Supreme Court. The executive branch should await the final decision on the constitutionality of the directive of Finance Secretary Ralph Recto for the national health insurer to remit a total of P89.9 billion to the treasury,” Rodriguez, a lawyer, said.

The SC on Tuesday issued a temporary restraining order (TRO) on the further transfer of P29.9 billion in PhilHealth funds following petitions from various groups, including 1Sambayan, a coalition led by retired Supreme Court Senior Associate Justice Antonio Carpio.

The TRO, however, covers only future transfers.

The P29.9 billion, the final tranche scheduled for transfer in November, is part of the P89.9 billion in excess PhilHealth funds ordered by the Department of Finance (DoF) to be turned over to the national treasury.

Of the total, P60 billion has already been transferred: P20 billion on 10 May, P10 billion on 20 August, and P30 billion on 16 October.

The petitioners argued that transferring PhilHealth funds to the national treasury constituted technical malversation or plunder, as the DoF and the other proponents would be using public funds for purposes other than those for which they were appropriated.

The fund transfer follows Memorandum Circular 003-2024 issued by the DoF, instructing government-owned and -controlled corporations, including PhilHealth, to divert their idle funds to the national treasury to bankroll unprogrammed appropriations in Republic Act 11975 or the 2024 General Appropriations Act.

Rodriguez, however, stressed that PhilHealth’s P89.9-billion was neither excess revenues nor loan proceeds.

“They are contributions from members and premiums set aside by Congress in the national budget for millions of poor people and senior citizens who cannot afford to pay for their health insurance,” the seasoned lawmaker pointed out.

Some groups have expressed concerns that the unprogrammed appropriations may be used to finance the controversial Maharlika Investment Fund, the country’s sovereign fund.

The SC has scheduled the hearing on the petitions questioning the legality of the PhilHealth fund transfer on 14 January.

Rodriguez is one with petitioners’ prayer to issue a status quo ante order that would effectively return all the funds to Philhealth, which the SC deemed “possible.”

Previously, Carpio 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 P89.9 billion in PhilHealth excess funds were an accumulation of the state-run health insurer’s dormant funds over the last three years.