Executive Secretary Ralph Recto said he will fully cooperate with the Office of the Ombudsman following the filing of complaints linked to the transfer of Philippine Health Insurance Corporation funds to the National Treasury, stressing that the issue will be resolved through proper legal channels.
The complaints were filed by the Save the Philippines Coalition against Recto and former PhilHealth president and chief executive officer Emmanuel Ledesma Jr. They allege technical malversation, plunder, and grave misconduct in connection with the transfer of PHP60 billion in PhilHealth reserve funds during Recto’s term as Secretary of Finance.
“I respect every citizen’s right to seek redress before the courts and will fully cooperate with the Office of the Ombudsman during the conduct of preliminary investigation,” Recto told reporters in a text message.
He said he welcomes the opportunity to address the allegations and emphasized that the matter should be clarified through established legal processes. “I welcome the opportunity to clarify the issues raised by the Save the Philippines Coalition, with representation by the Office of the Solicitor General,” he added.
Recto said the complaints will not distract him from his current responsibilities as Executive Secretary. “Nevertheless, I will not get distracted by political noise. The work of improving government performance and services is my priority. I will let my lawyers address those issues,” he said.
In 2024, the Department of Finance ordered the transfer of PHP89.9 billion in unused PhilHealth subsidies to the National Treasury. Of that amount, PHP60 billion had already been remitted, while about PHP29 billion remained with PhilHealth after the Supreme Court issued a temporary restraining order on the transfer.
The Supreme Court later unanimously ordered the return of the PHP60 billion to PhilHealth, ruling that the fund transfer from the state health insurer to the National Treasury in 2024 was unconstitutional. The ruling also permanently prohibited the transfer of the remaining PHP29.9 billion balance.
In a separate statement, Recto said the High Court affirmed his innocence for acting in good faith and in accordance with a direct mandate from Congress in ordering the remittance of PhilHealth’s unused funds. “In my more than 30 years in government, this is the first case of such kind that I have confronted, and view it as part of public service,” he said.
PhilHealth’s reserve funds are sourced from member contributions and government subsidies and are intended to ensure the sustainability of benefits and the continued operations of the state health insurer.
