Recto vows cooperation in Ombudsman review of PhilHealth fund transfer

Executive Secretary Ralph Recto on Monday said he will fully cooperate with the Office of the Ombudsman following the filing of a complaint against him over the transfer of excess funds from the Philippine Health Insurance Corporation to the national treasury.

Recto said he respects the right of citizens to seek redress before the courts and welcomed the opportunity to address the allegations raised by the Save the Philippines Coalition.

“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,” Recto told reporters in a statement.

The coalition earlier filed a complaint against Recto, in his capacity as former secretary of finance, and former PhilHealth president and chief executive officer Emmanuel Ledesma.

The complaint stemmed from the remittance of PhilHealth’s excess funds to the national treasury.

PhilHealth had been ordered to return P89.9 billion in unused funds. Of this amount, P60 billion was remitted last year before the Supreme Court issued a temporary restraining order halting the transfer of the remaining P29.9 billion.

The coalition cited the Supreme Court’s recent ruling, which directed the government to return the P60 billion already transferred to PhilHealth through the 2026 General Appropriations Act.

In its decision, the High Court declared void the earlier fund transfer, as well as Special Provision 1(d), Chapter XLIII of the 2024 General Appropriations Act, and Finance Circular No. 003-2024, for having been issued with grave abuse of discretion amounting to lack or excess of jurisdiction.

Recto maintained that he acted in good faith and in accordance with a mandate from Congress when he ordered the remittance of the funds.

“I welcome the opportunity to clarify the issues, prove my innocence, and debunk the allegations put forth,” he said, adding that Supreme Court justices had opined that no criminal liability may attach to him for actions taken while he was finance secretary.

Recto noted that in his more than 30 years in government service, this is the first time he has faced such a case, describing it as part of public service.

“I will not get distracted by political noise. The work of improving government performance and services is my priority,” he said, adding that his legal team, with representation from the Office of the Solicitor General, will handle the case.