Recto maintains no criminal liability over PhilHealth fund transfer

Executive Secretary Ralph Recto maintained he has no criminal liability over the controversial transfer of PhilHealth funds during his tenure as finance secretary, Malacañang said Thursday, stressing that he acted in good faith and in accordance with the law.

Palace Press Officer Undersecretary Claire Castro said Recto has repeatedly maintained his innocence, citing the 2024 General Appropriations Act (GAA) as the legal basis for the fund remittance ordered at the time.

“Nasagot na po iyan noong kamakailan ni ES Recto na siya lamang po ay sumusunod kung ano iyong naaayon sa batas, ito nga po iyong 2024 GAA (Recto has recently addressed the issue, saying that he is only acting according to the law, that is the 2024 GAA),” Castro said during a press briefing, adding that the Office of the Executive Secretary has yet to receive a copy of the complaint.

The statement came in response to questions on a criminal complaint reportedly filed by a group of lawyers and doctors against Recto over the transfer of PhilHealth’s unused funds to the national treasury. 

The complainants cited a Supreme Court ruling that later declared the finance order null and void.

According to Castro, Recto respects the right of individuals or groups to seek legal remedies, but emphasized that Supreme Court justices themselves have opined that no criminal liability attaches to him.

“We respect the right of any individual or group to seek redress through the legal process. At this time, we have yet to receive a copy of the complaint,” Castro quoted the Office of the Executive Secretary as saying. 

“No less than members of the Supreme Court have already opined that no criminal liability can attach to the Secretary of Finance, now ES Recto, who acted in good faith pursuant to a law then presumed valid and constitutional,” Castro added. 

Recto, in a separate statement, reiterated that the issue has already been settled by the High Court and that the government has fully complied with its ruling, including the return and restoration of PhilHealth funds.

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

He added that, as finance secretary, he merely implemented a “direct mandate from Congress” and acted in good faith when he ordered the remittance of unused PhilHealth funds.

“I will not get distracted by political noise. The work of improving government performance and services is my priority,” Recto said, stressing his commitment to uphold the rule of law and due process.

President Ferdinand R. Marcos Jr. had earlier directed the return of the funds to PhilHealth in September 2025, following the Supreme Court ruling. 

The Palace said it remains confident that the facts and the law will prevail as any allegations are evaluated by the appropriate institutions.