Recto, ex-PhilHealth chief face new Ombudsman complaint over P60B fund transfer

Former finance secretary Ralph Recto and former Philippine Health Insurance Corp. president Emmanuel Ledesma are facing another complaint filed Thursday before the Office of the Ombudsman by a group of health advocates over the alleged illegal transfer of P60 billion in PhilHealth funds to the National Treasury.

The complaint accuses the respondents of technical malversation, violation of Republic Act No. 7080, and grave misconduct, stemming from the remittance of what was described as “excess” PhilHealth funds.

The group cited Department of Finance Circular No. 003-2024, which directed the transfer of the funds to finance unprogrammed appropriations under Republic Act No. 11975, or the 2024 General Appropriations Act.

“Regardless if they spent the transferred money or not, the transfer violated our laws,” lawyer Ronel Taton said.

In December 2025, the Supreme Court of the Philippines ordered the return of the P60 billion to PhilHealth through the 2026 General Appropriations Act and barred the transfer of the remaining P29.9 billion fund balance.

The high court, sitting en banc, declared void Special Provision 1(d), Chapter XLIII of the 2024 GAA, Finance Circular No. 003-2024, and the transfer itself, citing grave abuse of discretion amounting to lack or excess of jurisdiction.

“Clearly, the transfer of the PhP60 Billion to the NationalTreasury violates RA 7875 as amended and RA 11223. In fact, in its pronouncement, the Supreme Court declared the said act as unconstitutional,” the group stated in the complaint.

The complainants alleged that the respondents, despite full awareness of legal prohibitions, “willfully, and maliciously, acting with evident bad faith, dishonesty, and grave misconduct, unlawfully and intentionally,” caused the transfer of PhilHealth reserve funds to the National Treasury.

The filing follows an earlier complaint lodged with the Ombudsman raising similar arguments that PhilHealth reserve funds are earmarked solely for specific investment instruments and cannot be transferred to the National Treasury or other government agencies.

In response, Recto, now executive secretary, said he respects the right of individuals or groups to seek legal remedies.

According to Recto, the issue has already been resolved by the Supreme Court and the government has fully complied with the ruling.

“Consistent with this, funding for PhilHealth has since been restored and even augmented in order to better serve our countrymen,” Recto said.

He reiterated his innocence and vowed to uphold due process.

“Let me also 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.

“For our part, we will continue to uphold the rule of law, respect due process, and work to uplift the lives of our kababayan. I will not get distracted by political noise. The work of improving government performance and services is my priority,” he added.

Ombudsman Jesus Crispin Remulla said the complaint will undergo evaluation to determine whether it merits further action.

“Siyempre if we find it to be properly done, and the legal basis is solid, then we will proceed but we will have to evaluate first, kailangan pag-aralan ‘yan,” Remulla said.