Recto urged to recall directive on PhilHealth funds

MANILA, Philippines — Finance Secretary Ralph Recto should rescind his directive for the state health insurer to transfer excess funds to the national coffers, according to a group including retired Supreme Court justice Antonio Carpio.

“Unused” funds of the Philippine Health Insurance Corp. (PhilHealth) are being remitted to the Bureau of the Treasury to finance unprogrammed appropriations including the congressional pork barrel this year.

In an Aug. 22 letter, Carpio and lawyer Howard Calleja – convenors of multisectoral group 1Sambayan – urged Recto to review the transfer of PhilHealth funds, saying this violates the Constitution on two grounds.

“First, in the Executive Branch, only the President can be authorized by law to transfer savings from one item to another in the appropriations for the Executive Branch under the GAA (General Appropriations Act),” the letter read.

Carpio and Calleja explained that the delegation of power to the finance secretary to transfer savings, from government-owned and controlled corporations (GOCCs) to the Treasury, is unconstitutional, as it is an undue delegation of constitutional power that belongs exclusively to the President.

“Second, the two transfers of idle or unused funds to date from PhilHealth result in technical malversation of public funds and constitute the crime of plunder,” they noted.

PhilHealth’s funds are special funds raised through taxation for a specific purpose, which is the universal health of Filipinos, they maintained.

If Recto fails to recall the funds, Carpio and Calleja said they will be constrained to challenge the transfer.

Last week, former senator Panfilo Lacson also questioned the transfer of PhilHealth’s excess funds to finance unprogrammed appropriations.

The PhilHealth Law and the Universal Health Care Act are special laws that outline how excess funds from the state insurer can be used, he said during an interview with “Storycon” on One News on Aug. 23.

“From that alone, you know that it is not allowed. It’s illegal, unconstitutional,” he asserted.

It will be up to the Supreme Court to decide on the matter, Lacson said.

Advocates led by Senate Minority Leader Aquilino Pimentel III earlier