Ex-health chief belies claim of P10.6-B PhilHealth funds diversion

MANILA — Former health secretary Janette Garin on Wednesday refuted the accusation that she and former PhilHealth president Alex Padilla diverted the PHP10.6 billion originally meant for the payment of senior citizens’ insurance premiums to establish rural health units of the Department of Health (DOH) nationwide.

“No such diversion. While there were collectibles submitted by the finance department of PhilHealth, these were not justified. As there are conditions required prior to release of said fund, (and) this was not met,” Garin told the Philippine News Agency (PNA) in a text message.

She noted that the Department of Budget and Management (DBM) turned down the release of the amount for the Health Facilities Enhancement Program (HFEP) and Human Resource Program among others.

Garin was reacting to statements made by PhilHealth Officer-in-Charge Celestina Jude dela Serna during the Senate probe into her travel expenses and the issue on the sustainability of the agency’s funds.

During the hearing, dela Serna gave copies to the media of the graft complaint against Garin and Padilla filed before the Office of the Ombudsman.
In the complaint, dela Serna alleged that the PHPP10.6 billion originally meant for the payment of senior citizens’ insurance premiums was diverted by Garin and Padilla in favor of the establishment of DOH’s rural health units.

Based on the complaint, on April 28, 2015, Padilla sent a letter to Garin to ask the DBM to process the Special Allotment Release Order and release the funds as payment for the senior citizens, as mandated by Republic Act No. 10645 or the Expanded Senior Citizens Act and the National Health Insurance Program.

The complaint also said that nearly four months after, on Aug. 5, 2015, the two former officials wrote a letter to then budget chief Florencio Abad and requested, without approval of the PhilHealth Board, for the immediate release of the PHP10.6 billion for the DOH’s HFEP instead.

Garin decried being used as a scapegoat by the PhilHealth chief to “cover up” the financial mess the state-run health insurer is in.

“Culprits of fraud and financial mismanagement in PhilHealth should not use me as a scapegoat to cover up their current disastrous financial situation,” she said in the text message.

She also called on the government to lead a credible audit of the financial condition of PhilHealth.

“PhilHealth has been mismanaged. I call on our government to direct an external, credible audit team and salvage (the) institution before it becomes too late,” she added. (Leilani Junio/PNA)

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