Petition No. 3 challenges P89.9-B PhilHealth fund transfer

MANILA, Philippines — A third petition challenging the transfer of P89.9 billion in unused funds from the Philippine Health Insurance Corp. (PhilHealth) to the National Treasury was filed before the Supreme Court on Wednesday, October 16.

The latest filing coincides with the expected transfer of the third tranche of funds to the national coffers.

The petitioners, including members of the 1Sambayan coalition, former Supreme Court Senior Associate Justice Antonio Carpio, and former high-ranking government officials, filed for certiorari and prohibition along with a temporary restraining order to halt the funds' transfer.

Accompanying the petitioners are former Finance Undersecretary Cielo Magno, former Commission on Audit Commissioner Heidi Mendoza and former Ombudsman Conchita Carpio-Morales.

Constitutional challenge. The petition assails the Department of Finance circular issued in February 2024 that allowed the fund transfer, citing a constitutional provision that limits the authority to transfer appropriations to certain high-ranking officials.

The petitioners argue that Finance Secretary Ralph Recto is not among those authorized to make such transfers.

"The Constitution provides that 'No law shall be passed authorizing any transfer of appropriations; however, the President, the President of the Senate, the Speaker of the House of Representatives, the Chief Justice of the Supreme Court, and the heads of Constitutional Commissions may, by law, be authorized to augment any item in the general appropriations law for their respective offices from savings in other items of their respective appropriations,'" the petition states.

The petitioners contend that PhilHealth funds are "special funds" that cannot be classified as government savings. They argue that these funds cannot be transferred unless their purpose has been fulfilled or abandoned, which is not the case for PhilHealth.

As of the filing, PhilHealth has already transferred P30 billion in two tranches, with the third tranche of P30 billion expected to be transferred on the same day as the petition filing.

Legal implications. The petition suggests that the transfer authorized by Recto could constitute