SC asked to order return of PhilHealth funds transferred to treasury

INQUIRER FILE PHOTO

MANILA, Philippines —  The 1Sambayan Coalition and UP Law Class of 1975 on Wednesday petitioned the Supreme Court (SC) to order the return of excess funds transferred by the Philippine Health Insurance Corporation (PhilHealth) to the National Treasury upon orders of the Department of Finance (DOF).

The petition was filed following the DOF’s issuance of Circular 003-2024, which allowed the transfer of the P89.9-billion unused PhilHealth funds to the Bureau of Treasury in four tranches. It will be used for other government expenditure.

In May, P20 billion was transferred to the national treasury, followed by P10 billion on Aug. 21. The third tranche, at P30 billion, is set to be sent this October.

Due to this, the petitioners asked the SC to declare null and void the provision in the General Appropriations Act 2024 and the DOF’s circular, which allowed the transfer of PhilHealth’s excess funds to the national treasury.

It also asked the high court to prohibit all respondents from enforcing the DOF’s circular and to order the return of the funds that had already been remitted to PhilHealth.

The groups also requested the SC to issue a temporary restraining order and a writ of preliminary injunction, “to prevent any irreparable injury to petitioners due to the infringement of their Constitutional rights.”

They cited the potential impact of the transfer on millions of Filipinos, especially indigents and senior citizens who rely on PhilHealth.

In their 47-page petition, they pointed out that the fund transfer was unconstitutional, citing Article VI, Section 25 (5) of the 1987 Constitution which states that “no law shall be passed authorizing any transfer of appropriations” apart from the President, the Senate President, Speaker, Chief Justice, and heads of Constitutional Commissions for their respective offices.

“Only the above-mentioned government officials, therefore, are allowed by law to transfer appropriations to augment any item in the general appropriations for their respective offices from savings in other items of their respective appropriations,” the petition read.

“The Secretary of the Department of Finance is not among the enumerated officials that may authorize the transfer,” it added.

Furthermore, the petitioners argued that since PhilHealth funds are classified as “special funds,” it cannot be transferred unless its purpose has either been abandoned or accomplished under Article VI, Section 29 of the 1987 Constitution.

“Any attempt to appropriate PhilHealth funds for another reason, no matter how noble or good, is contrary to the Constitution,” the petition read.

“The transfer of special PhilHealth funds to the national treasury constitutes technical malversation because Respondents applied public funds to another use other than that for which PhilHealth funds were appropriated,” it added.

READ: Petition filed at SC vs PhilHealth fund transfer, cites constitutionality