PACC probes PhilHealth’s P866-M stocks

MANILA, Philippines — The Presidential Anti-Corruption Commission (PACC) is continuing its probe into irregularities in Philippine Health Insurance Corp., (PhilHealth), including a P865.9 million investment in common shares of stock.

PACC Commissioner Greco Belgica said the agency’s investigation of PhilHealth’s stock investments covered 40 officials.

“In PhilHealth common stock investment scam, we saw that P865,927,169 of the P1 billion initial investment was invested by the Philhealth in common stock. We found in their charter that they don’t have the right or the authority to invest in common stock, only in preferred stocks,” Belgica told a press briefing on Monday.

Belgica was referring to Republic Act No. 10606, or the PhilHealth charter, which states that investments should only be in preferred shares.

Common shares entitle company shareholders to vote unlike preferred shares.

The PACC is also investigating allegations that the income from investments in common shares were being divided among PhilHealth board of directors and the executive committee.