By Ruth Abbey Gita-Carlos | Philippine News Agency
Malacañang on Friday said it respects the Supreme Court’s (SC) order to restore the Philippine Health Insurance Corporation’s (PhilHealth) P60-billion idle funds that were transferred to the National Treasury in 2024.
In a statement, Executive Secretary Ralph Recto said the Executive branch would abide by the SC’s directive and ensure that the fund return is carried out in accordance with existing laws and budgetary procedures.
“Tulad ng lagi naming sinasabi bago pa man ang desisyon, susunod po ang Ehekutibo sa kautusan ng Korte Suprema, gaya rin ng pagsunod at pagtalima namin sa direktiba ng Kongreso noon na gamitin ang natutulog na pondo ng mga GOCCs (government-owned or -controlled corporations) para sa kapakanan ng taumbayan,” Recto said.
President Ferdinand R. Marcos Jr. took proactive steps as early as Sept. 20 to restore PhilHealth funds, in recognition of the agency’s stronger performance, increased absorptive capacity, and expanded benefits, Recto noted.
Recto reaffirmed the Marcos administration’s commitment to maximizing government resources to ensure that “no Filipino is ever denied healthcare.”
“Our goal remains the same: to make every hard-earned peso of the Filipino taxpayer count—for our people, for their families, and for their health,” he said.
“We also stress that PhilHealth’s ability to deliver services was never impaired by the fund transfer, and no member contributions were taken. In fact, the correction led to the agency’s largest expansion of benefit packages in Universal Health Care history, alongside the rollout of zero balance billing to protect Filipino families from rising medical costs,” Recto added.
Recto said the Executive merely complied with the congressional mandate under the 2024 General Appropriations Act, adding that the Department of Finance’s (DOF) role is “solely in revenue generation and debt and deficit management.”
“We believed then, and still believe, that the directive was a common-sense approach to optimize government coffers without resorting to additional borrowing or new taxes,” Recto, the country’s former Finance chief, said.
“Before any remittance occurred, the Office of the Government Corporate Counsel, the Governance Commission for GOCCs, and the Commission on Audit gave DOF the green light to do so. The PhilHealth board also approved the transfer.”
In a separate statement, Presidential Communications Office Acting Secretary Dave Gomez said the Office of the Solicitor General would review the ruling and take the appropriate action, which may include filing a motion for reconsideration.
Gomez said the House of Representatives incorporated the restoration in the General Appropriations Bill, and the Senate would uphold the directive in its committee report.
In its decision dated Wednesday, the SC unanimously ordered the return of the P60 billion previously transferred to the National Treasury and permanently prohibited the transfer of the remaining P29.9 billion fund balance.
By a majority vote, it also declared void Special Provision 1(d), Chapter XLIII of the 2024 General Appropriations Act (2024 GAA), and DOF Circular No. 003-2024 for having been issued and implemented with grave abuse of discretion amounting to lack or excess of jurisdiction.
The special provision authorized the return of excess reserve funds of GOCCs to the National Treasury to fund unprogrammed appropriations under the 2024 GAA; while DOF Circular No. 003-2024 meanwhile, directed the transfer of P89.9 billion to the National Treasury, representing the fund balance or excess reserve funds of PhilHealth.
Then SC said the special provision “impliedly repeals Section 11 of the Universal Health Care Act (UHCA) and the Sin Tax Laws.”
Under Section 11 of the UHCA, PhilHealth is required to maintain reserve funds up to a ceiling equivalent to two years of projected program expenses. It also expressly provides that no portion of the reserve fund or its income may be transferred to the National Government or any of its agencies.
The SC stressed that Congress cannot repeal Section 11 through the GAA, which may only provide appropriations consistent with existing laws. It also ruled that the Finance Secretary cannot, in any capacity, augment any item in the GAA because this power belongs to the President.
Meanwhile, the SC ruled that President Marcos did not commit grave abuse of discretion when he certified as urgent House Bill No. 8980, now the 2024 GAA.
The SC also denied the petitioners’ request to determine the liability of the DOF Secretary for technical malversation and/or plunder, ruling that such matters are improper for resolution in this case. (with a report from Benjamin Pulta/PNA)
