Executive Secretary Ralph Recto and several Cabinet officials are facing plunder and malversation complaints before the Office of the Ombudsman over the alleged diversion of funds from the Philippine Health Insurance Corporation and the Philippine Deposit Insurance Corporation in 2025.

The complaints were filed by former Department of Health official Tony Leachon, who argued that the reallocation of funds negatively affected PhilHealth beneficiaries and hospitals dependent on reimbursements.

Leachon alleged that Recto’s order to transfer P60 billion from PhilHealth to the National Treasury violated the Constitution by “stripping health financing of its rightful purpose.”

He further claimed that the state health insurer accumulated a deficit of P356.6 billion from 2023 to 2025, resulting in delayed payments to hospitals and leaving millions of Filipinos with limited access to healthcare services.

The health reform advocate described the fund diversion as a “deliberate pattern of unconstitutional reallocation” that undermined both health and financial security in the country.

“This is not merely a legal matter but a moral one,” Leachon said in a statement.

“The P60 billion could have saved lives, kept hospitals afloat, and brought dignity to families in despair. Instead, it was stolen from the sick and the poor,” he added.

In response, Recto dismissed the complaints as harassment and said the accusations should be “thrown out with great force.”

The finance secretary cited a ruling by the Supreme Court of the Philippines, which he said affirmed that no unlawful or unconstitutional act was committed in the transfer of funds.

Throughout a lengthy Facebook post, Recto quoted statements from associate justices who said he was “simply doing his job” in implementing provisions of the 2024 General Appropriations Act.

“It cannot be emphasized enough that the actions of the executive and legislative officials lacked the necessary criminal intent or procedural irregularity. The DOF Secretary’s actions were strictly ministerial and were executed pursuant to the explicit and mandatory language of the provision of the 2024 GAA,” Associate Justice Rodil Zalameda said in the ruling cited by Recto.

The former senator also accused Leachon of repeatedly spreading falsehoods and harboring political motives against him.

“This bitter man is again auditioning for a post in the next administration using a platform of lies. His claim that I have financially benefitted from said PhilHealth funds is an outright falsehood. This is libelous,” Recto said.

“The question now is who is financing this case, in a bid to divert the public attention to the scam that that mastermind had perpetrated?” he added.

Leachon later rejected Recto’s accusations, insisting that the complaint was not politically motivated ahead of the 2028 elections but stemmed from a citizen’s duty to uphold the Constitution and protect public health funds.

He acknowledged the Supreme Court opinions cited by Recto but maintained that the facts surrounding the transfer of funds warranted further scrutiny.

According to Leachon, accountability and transparency must prevail, including tracing every peso transferred from PhilHealth.

“This is not harassment. This is not slander. This is the exercise of a citizen’s duty to defend the Constitution and the people’s right to health,” he said.

“I hold no bitterness, only resolve. The Filipino people deserve clarity, justice, and assurance that their health funds will never again be compromised,” he added.