Liable execs emerge

Several points came out during the resumption of the oral arguments before the Supreme Court on petitions to block the transfer of P89.9 billion in PhilHealth funds to the national treasury, not least of which were the lies that led to the moving of the funds.

The money was transferred from PhilHealth to the national treasury through an intricate process, from which funds were drawn for essential but displaced projects under the unprogrammed appropriations (UA).

The UA in the national budget mostly covered projects sidelined by the insertion of pet projects of legislators in the allocations of different agencies, primarily the Department of Public Works and Highways and the Department of Agriculture.

Associate Justice Amy Lazaro-Javier questioned the urgency of diverting the excess or idle funds, if there was such a thing, of the Philippine Health Insurance Corp. (PhilHealth).

Using PhilHealth resources for purposes other than providing care to sick people was questionable, according to the magistrate.

“It is a fact that money was taken, in fact, P89 billion. Although a little was restrained by the government, by the SC. So that’s the fact that billions of pesos were taken from the reserve funds of PhilHealth,” she said.

She said the laws covering the use of the funds were very specific.

“For the construction of a bridge that has not even started and that has been funded many times over? And a right of way that was already funded with billions, and the maintenance of roads that was already funded billions under the GAA?” she doubted.

The SC issued a temporary restraining order (TRO) in October on the transfer of the PhilHealth funds to the national treasury, which came after P60 billion had already been moved.

The stratagem was employed in the past years through the manipulation of the budget law where legislators embedded a provision authorizing the Department of Finance to sweep up excess funds from government-owned and controlled corporations (GOCCs).

The more than four-hour SC hearing established what critics of the PhilHealth funds reallocation have repeatedly insisted, which is that its reserves should be “used exclusively” for programs related to the corporation and not for other unrelated purposes.

Recto insisted that he acted in accordance with the budget law that contained the inserted provision that granted him authority over idle funds.

He said the funds remitted to the national treasury were intended to finance “urgent” national projects.

Former Health Undersecretary for Population and Development Dr. Juan Antonio Perez III earlier asserted that even the claim that there were idle or excess funds in PhilHealth was a deception.

PhilHealth, said the former official, had “negative equity” due to its liabilities of P1.163 trillion, a fact that was certified to by the Commission on Audit. Its deficit stood at P664 billion, which was the second highest among GOCCs.

“Whatever money is left in PhilHealth it is not enough for the healthcare of Filipinos. Especially this e-Konsulta, if it will be implemented, P190 billion will be spent on it,” Perez said.

He stressed that it should not be about whether PhilHealth has a lot or too much money since the reserves should meet the healthcare needs of every Filipino for consultations, hospital packages and medicines.

The way the discourse at the Supreme Court is going, it is highly probable the DoF would be found in violation of the Constitution for taking not only P60 billion from PhilHealth but a bigger P107 billion from the Philippine Deposit Insurance Corp.

Who then will be ordered to refund the government insurers the P167 billion taken from them?

Recto and Budget Secretary Amenah Pangandaman may have to start counting their savings if the court asks them to reimburse the state as a result of their acts.