Group files plunder complaint vs Recto, ex-PhilHealth chief over P60-B fund transfer

A group calling itself the Save the Philippines Coalition has filed complaints for plunder, technical malversation, and grave misconduct against Executive Secretary and former finance secretary Ralph Recto and former PhilHealth president Emmanuel Ledesma before the Office of the Ombudsman.

The complaint stems from the alleged illegal transfer of P60 billion in PhilHealth reserve funds to the National Treasury. The group cited the Supreme Court decision issued on 5 December ordering the return of the funds to PhilHealth.

“P60 Billion from the PhilHealth Reserve Funds, was diverted, albeit illegally to the National Treasury, violating Section 11 of RA 11223, which was recently declared unconstitutional by the Supreme Court, thru a unanimous vote,” the complaint stated.

The group noted that under the law, PhilHealth’s reserve funds are intended to be invested in specific financial instruments such as interest-bearing bonds and preferred stocks of solvent corporations or institutions operating under Philippine laws.

“Reserve Funds, shall be invested in certain instruments. It does not authorize the transfer of any of its excess or reserve funds, to the national treasury or any agency, except for income (interest) bearing instruments,” the complaint added.

One of the complainants, Elmer Jugalbot, said the Supreme Court ruling clearly addressed the constitutionality of the fund transfer.

“There is no criminal case or liability,” Jugalbot said, adding that claims asserting Recto has no criminal liability stem from concurring and dissenting opinions of some justices.

“But in fact, it was a unanimous vote that it was unconstitutional,” he added.

When asked who the group considers the principal plunderer, members pointed to former Department of Finance secretary Recto. They said they are leaving it to the Office of the Ombudsman to determine whether criminal or administrative liabilities exist for Recto and former PhilHealth chief Ledesma.

In response, Recto said he respects citizens’ right to seek legal remedies and vowed full cooperation with the Ombudsman’s investigation, adding that he would remain focused on his work in government.

“I respect every citizen’s right to seek redress before the courts and will fully cooperate with the Office of the Ombudsman during the conduct of preliminary investigation. I welcome the opportunity to clarify the issues raised by the Save the Philippines Coalition, with representation by the Office of the Solicitor General,” Recto said.

“Nevertheless, I will not get distracted by political noise. The work of improving government performance and services is my priority. I will let my lawyers address those issues,” he added.

Recto emphasized that he is innocent of the allegations against him and said he acted in good faith and in accordance with a direct mandate from Congress when he ordered the remittance of PhilHealth’s unused funds during his time as finance secretary.

“But let me reiterate my innocence, as opined by Supreme Court Justices, that no criminal liability may attach to me, as former Secretary of Finance, for acting in good faith and in accordance with a direct mandate from Congress in ordering the remittance of PhilHealth’s unused funds,” Recto said.

“In my more than 30 years in government, this is the first case of such kind that I have confronted, and view it as part of public service,” he added.

As of press time, former PhilHealth president Ledesma has yet to issue a statement on the complaint.