Opposition to challenge Recto’s PhilHealth funds order in SC

MANILA, Philippines — An opposition coalition will “test the validity” of Finance Secretary Ralph Recto’s order for the Philippine Health Insurance Corporation (Philhealth) to return its excess funds to the Bureau of Treasury before the Supreme Court.

Retired Justice Antonio Carpio and Howard Calleja, convenors of the 1Sambayan coalition, said they will make the move once Recto refuses to recall his policy regarding the funds of Philhealth.

The DOF issued Department Circular No. 003-2024 directing PhilHealth, among other government-owned and -controlled corporations, to remit to the national treasury its unutilized subsidies amounting to P89.9 billion from 2021 to 2023 to fund the government’s unprogrammed appropriations.

“In the event that no recall is made, we will be constrained to test the validity of the circular in the Supreme Court,” the 1Sambayan said in a letter dated Aug. 22.

Both Carpio and Calleja noted that the law only authorizes the President to transfer savings from one item to another in the appropriations for the Executive Branch under the General Appropriations Act.

They said the delegation of power to Recto in doing such a move “is unconstitutional for being an undue delegation of constitutional power that belongs exclusively to the President.”

The transfer of unused funds will also result in “technical malversation” which could lead to the crime of plunder, according to them.

“Under Section 29 (3), Article VI of the Constitution, the funds of Philhealth are Special Funds raised through taxation for a specific purpose and can be used only for the specific purpose intended by law, which is the universal health of the Filipino people, a purpose that has not been accomplished or abandoned,” they said.

For his part, Recto said he would not green light the move if it was illegal, but as far as the Department of Finance’s point of view, it is legal.

“If Congress passes a law to instruct me to stop it and to return the money, I will. If the Supreme Court says the same thing, I will follow,” he told Philippine Daily Inquirer.

READ: BIZ BUZZ: PhilHealth fund transfer ‘legal’ and ‘efficient,’ says Recto