Recto faces plunder, graft over PhilHealth fund transer

MEMBERS of the group Save the Philippines Coalition filed plunder and graft complainst against Executive Secretary Ralph Recto and former Philippine Health Insurance Corp. (PhilHealth) president Emmanuel Ledesma Jr. over the transfer of P60 billion in alleged excess reserve funds to the national treasury.

In a 15-page complaint lodged before the Office of the Ombudsman on Monday, the group accused Recto and Ledesma of technical malversation under Article 220 of the Revised Penal Code, violations of the Anti-Graft and Corrupt Practices Act (RA 3019) and the Anti-Plunder Law (RA 7080), as well as grave misconduct under the Code of Conduct and Ethical Standards for Public Officials (RA 6713). The complainants are seeking their dismissal from government service.

The complainants argued that the transfer violated provisions of the PhilHealth Law (RA 7875), which state that excess reserves should be used to increase benefits or reduce member contributions.

They also cited Section 11 of RA 11223, which prohibits PhilHealth reserve funds from accruing to the national government or any of its agencies.

Recto was faulted for including PhilHealth reserves among excess funds of government-owned and -controlled corporations, while Ledesma was accused of allowing the transfer to proceed.

The group said the fund transfer endangered the country’s healthcare system.

Earlier this month, the Supreme Court ordered the return of the P60 billion to PhilHealth and permanently barred further transfers of its remaining reserve funds.