Malacañang urged to withhold P60B PhilHealth funds pending SC ruling

A senior lawmaker urged the Palace on Wednesday to withhold the P60 billion in remitted PhilHealth funds to the national treasury pending the final decision of the Supreme Court (SC), which temporarily stopped 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 later rules 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, only covers future transfers.

The P29.9 billion, which is the last tranche scheduled for transfer in November, was part of the P89.9 billion excess PhilHealth funds ordered by the Department of Finance (DOF) to be returned to the national treasury.

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

The petitioners argue that the transfer of PhilHealth funds to the national treasury constitutes technical malversation or plunder as the DOF and other proponents would be applying public funds to a purpose other than that for which the PhilHealth funds were appropriated.

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 support unprogrammed appropriations in Republic Act No. 11975 or the 2024 General Appropriations Act.

Rodriguez, however, stressed that PhilHealth’s P89.9-billion funds are 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 lamented.

Some groups have raised suspicions that the unprogrammed appropriations would be used to support the controversial Maharlika Investment Fund, the country’s sovereignty fund.

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

Rodriguez supports the petitioners’ prayer to issue a status quo ante order that would effectively return the fund transfers 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’s excess funds accumulated from the state-run health insurer's dormant funds over the past three years.