For being on top of the pilfering of P60 billion from the Philippine Health Insurance Corp. (PhilHealth), Executive Secretary Ralph Recto and former PhilHealth president Emmanuel Ledesma are facing criminal charges. 

Both are subjects of complaints in the Office of the Ombudsman for technical malversation, violation of Republic Act 7080, and grave misconduct in connection with the P60 billion in PhilHealth reserve funds transferred to the National Treasury.

The cases were lodged by a coalition of doctors, health advocates, and lawyers led by Atty. Dean Rodel Taton before the Ombudsman on Thursday.

Cited in the complaint was Department of Finance Circular 003-2024 which directed the transfer of the “excess” funds to finance unprogrammed appropriations (UA) under Republic Act 11975 or the 2024 General Appropriations Act (GAA).

In December 2025, the Supreme Court ordered the return of P60 billion to PhilHealth through the 2026 GAA and prohibited the transfer of the remaining fund balance of P29.9 billion.

The SC decision declared void Special Provision 1(d) of Chapter XLIII of the 2024 GAA, Finance Circular 003-2024, and the transfer of the P60 billion as having been issued with grave abuse of discretion amounting to lack or excess of jurisdiction.

“Clearly, the transfer of the P60 billion to the National Treasury violated RA 7875 and RA 11223. In fact, in its pronouncement, the Supreme Court declared the act as unconstitutional,” the group noted in their complaint. 

According to the complainants, despite the respondents’ full awareness of prohibitions under the law, they “willfully, and maliciously, acting with evident bad faith, dishonesty, and grave misconduct, unlawfully and intentionally” caused the transfer of the P60 billion in PhilHealth reserve funds. 

Raps pile up 

The complainants said the reserve funds were strictly earmarked for investment only in specific financial instruments, such as interest-bearing bonds and preferred stocks, and may not be transferred to the National Treasury or any government agency.

In response, Recto in a press statement said he respected any individual’s or group’s right to seek legal remedies and to avail themselves of the processes provided under the law.

He said the issue had been addressed by the Supreme Court and the government had fully complied with its ruling.

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

The former finance secretary insisted on his innocence, vowing to uphold the rule of law and due process, and said he believed the appropriate institutions would evaluate any allegations fairly and objectively.

“Let me reiterate my innocence, as opined by SC 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 his statement.

“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 be distracted by the political noise. The work of improving the government’s performance and services is my priority,” he added.

Ombudsman Jesus Crispin Remulla said the complaint will be evaluated to determine if it would warrant any further action by his office.

“If we find it to be properly done and the legal basis is solid, then we will proceed, but we will have to evaluate it first, we need to study it,” Remulla said.

Palace covers for Recto

Meanwhile, 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 at the time.

“Recto has recently addressed the issue, saying that he was only acting according to the law, that is, the 2024 GAA,” Castro said in a press briefing.  The Office of the Executive Secretary had yet to receive a copy of the complaint, she added.

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