The controversial transfer of billions of pesos from the funds of Government-Owned and -Controlled Corporations (GOCCs), particularly the Philippine Health Insurance Corporation (PhilHealth), to the National Treasury remains a subject of debate, long after the transfer occurred.

Retired Supreme Court Associate Justice Antonio Carpio recently alleged in an online news channel interview that the questionable fund transfer stemmed from special provision "insertions" in the 2024 national budget supposedly linked to former Albay Second District congressman Joey Salceda.

Salceda has repeatedly denied the allegations. In a new report from the Institute of Risk and Strategic Studies, which he chairs, Salceda detailed his defense.

“First, I was never a member of the Appropriations Committee, the bicameral panel or the small committee in the 19th Congress. Thus, such insertion by me is procedurally impossible,” he said.

He further argued that the premise linking the 2024 provision to his previous legislative effort is inaccurate.

“My bill never became law. It sought to amend the 2023 budget and allow GOCC excess funds to be tapped only if they are unencumbered by benefit obligations. Under that rule, PhilHealth could not remit anything if it had legal liabilities to fund,” said Salceda.

Salceda claimed the operative provision in the 2024 national budget was fundamentally different.

“It mandated GOCCs to reduce their reserves to historical levels and imposed deadlines for their submission, effectively compelling the release of any free cash on hand. That is why it ran into constitutional issues, especially for GOCCs whose charters protect their reserve funds,” he said.

Salceda clarified that he did introduce House Bill No. 9513 to help fund the 2023 Covid-19 borrowings, a measure passed by the House but which did not become law. He said the proposal was necessary to find legal ways to fund the Public Health Emergency Allowance and the Health Facilities Support Fund, both needing around 52 billion pesos each, given the government's commitment to a no-new-taxes pledge.

“Any connection between me and that idea ended there. I never filed any bill for the 2024 budget,” Salceda said. “Now, whether the budget committees copied that bill to fund the 2024 budget is entirely up to their discretion. It is customary for other members of Congress to copy from my bills.”