The Office of the Ombudsman has dismissed all criminal and administrative complaints against Executive Secretary Ralph Recto and the head of the state health insurance agency regarding the transfer of billions in reserve funds to the National Treasury.

In a 40-page consolidated resolution made public Tuesday, the anti-graft body cleared Recto, the former finance secretary, and Philippine Health Insurance Corp. (PhilHealth) president and CEO Emmanuel Rufino Ledesma Jr. of technical malversation, plunder, and violations of the Anti-Graft and Corrupt Practices Act.

The Ombudsman ruled there was a lack of prima facie evidence to establish a reasonable certainty of conviction.

The legal dispute stemmed from the transfer of PhilHealth’s unused reserve funds to the national government, a move authorized by provisions in the 2024 General Appropriations Act to fund unprogrammed state expenditures.

“The respondents’ acts do not amount to the crime of plunder as defined by law,” the resolution stated, noting that Recto was actually commended in a separate case for his commitment to return P60 billion to PhilHealth.

"Thus, the return of the P60 billion to PhilHealth militates against the allegation that respondents took advantage of their positions for 'personal enrichment,'" the ruling added.

The Ombudsman also dismissed administrative charges of grave misconduct against both officials, finding no evidence of bad faith, corrupt motives, manifest partiality, or unlawful intent.

According to investigators, the transfer followed a direct congressional mandate in the national budget. The resolution noted that the action was backed by formal legal opinions and extensive consultations with state regulatory bodies, including the Office of the Government Corporate Counsel, the Commission on Audit, and the Governance Commission for Government-Owned or Controlled Corporations.

"The elements of corruption, clear intent to violate the law, or flagrant and palpable breach of duty are not manifest in the present case," the Ombudsman ruled. "In the absence of contrary evidence, what will prevail is the presumption that respondents regularly performed their duties."