MANILA, Philippines — The Philippine Health Insurance Corp. (PhilHealth) made some P4.93 billion in risky investments in 2018, the Commission on Audit (COA) said in its annual audit report, adding that some officials documents were not notarized, exposing the amount to possible irregularities.
“Lapses in the selection of corporate bond investment totaling P14.345 billion were noted… exposing government funds to undue risk of loss,” said the report which did not name the specific companies or financial institutions that PhilHealth had invested in.
The audit agency noted other irregularities involving PhilHealth’s reserve funds, including unaudited financial statements, the lack of evaluation of the bond issuers’ capacity to pay interest on securities, and unethical investments, including one in a holding company engaged in power generation and distribution.
“The use of coal and oil requires minerals through mining… is among the ‘negative list’ of investments considered not ethically and socially responsible by PhilHealth,” the COA said. —Patricia Denise M. Chiu