Leachon: PhilHealth fund transfer opens new avenue for graft

đź“·Dr. Tony Leachon

WHILE it is proper to compensate healthcare workers who have been risking their lives in perusal of their duty, former government health adviser Tony Leachon finds the transfer of Philippine Health Insurance Corp. (PhilHealth) funds to the national treasury alarming and may open a new avenue for corruption.

Leachon, who was part of the government task force on top of the national health emergency amid the global pandemic, particularly hinted at the Department of Finance (DOF) circular which he claimed could become a new way for the government to misappropriate funds.

Aside from Leachon, former Finance Undersecretary Cielo Magno and Filomeno Sta. Ana III, executive director and cofounder of local think tank Action for Economic Reforms, expressed apprehension over what they referred to as “highly irregular.”

According to them, the mere transfer of PhilHealth member contributions violates Section 11 of Republic Act 11223 (Universal Health Care Act of 2019) which says that whenever actual reserves exceed the required ceiling at the end of the fiscal year, the excess can be used only to increase the program’s benefits and decrease the members’ contribution amounts.

The same law provides that no portion of the reserve fund or income can go to the general fund of the national government or any of its agencies or GOCCs.

However, Finance Secretary Ralph Recto defended the DOF circular even as he claimed that the P20-billion fund that was used to cover the unpaid allowances of healthcare workers, did not come from PhilHealth member contributions.

Recto said that the supposed funds that were transferred to the national government were the billions in unused subsidies from the national government.

The Finance chief added that such fund transfer is in compliance with the provisions under the 2024 General Appropriations Act, which was approved by Congress, allowing excess funds of government-owned and -controlled corporations (GOCCs) to be returned to the national coffers.

On July 5, Budget Secretary Amenah Pangandaman approved a special allotment release order amounting to P27.453 billion to settle the remaining unpaid HEA, upon the directive of President Marcos.

This was the same amount the DOH was requesting under its proposed 2025 budget for HEA claims to finally cover some five million remaining validated unpaid HEA claims and 4,283 COVID-19 sickness and death compensation claims of eligible health-care and nonhealth-care workers who served at the height of the pandemic.

“This is a promise fulfilled,” said Pangandaman, adding that while the DOH had requested the money in its 2025 budget, her department exerted extra effort to find funds for the unpaid claims of health-care workers.

Meanwhile, members of the House minority bloc called for a congressional inquiry over the controversial fund transfer.

House Assistant Minority Leader Arlene Brosas who sought an investigation in aid of legislation described the fund transfer as “highly irregular” too.

This comes as Senate Finance Subcommittee chair Pia Cayetano expressed concerns on the “transfer and utilization of the reserve funds” of PhilHealth, and hinted at launching a parallel congressional inquiry over the matter. (ANGEL F. JOSE)

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