MANILA, Philippines — A third petition challenging the transfer of P89.9 billion in unused funds from the Philippine Health Insurance Corp. (PhilHealth) to the National Treasury was filed before the Supreme Court on Wednesday, October 16.
The latest filing coincides with the expected transfer of the third tranche of funds to the national coffers.
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The petitioners, including members of the 1Sambayan coalition, former Supreme Court Senior Associate Justice Antonio Carpio, and former high-ranking government officials, filed for certiorari and prohibition along with a temporary restraining order to halt the funds' transfer.
Accompanying the petitioners are former Finance Undersecretary Cielo Magno, former Commission on Audit Commissioner Heidi Mendoza and former Ombudsman Conchita Carpio-Morales.
Constitutional challenge. The petition assails the Department of Finance circular issued in February 2024 that allowed the fund transfer, citing a constitutional provision that limits the authority to transfer appropriations to certain high-ranking officials.
The petitioners argue that Finance Secretary Ralph Recto is not among those authorized to make such transfers.
"The Constitution provides that 'No law shall be passed authorizing any transfer of appropriations; however, the President, the President of the Senate, the Speaker of the House of Representatives, the Chief Justice of the Supreme Court, and the heads of Constitutional Commissions may, by law, be authorized to augment any item in the general appropriations law for their respective offices from savings in other items of their respective appropriations,'" the petition states.
The petitioners contend that PhilHealth funds are "special funds" that cannot be classified as government savings. They argue that these funds cannot be transferred unless their purpose has been fulfilled or abandoned, which is not the case for PhilHealth.
As of the filing, PhilHealth has already transferred P30 billion in two tranches, with the third tranche of P30 billion expected to be transferred on the same day as the petition filing.
Legal implications. The petition suggests that the transfer authorized by Recto could constitute technical malversation, a crime under the Revised Penal Code.
Former Ombudsman Conchita Carpio-Morales indicated that criminal or administrative charges could be filed against responsible individuals if law violations are proven.
“The transfer of special PhilHealth funds to the national treasury constitutes technical malversation because Respondents applied public funds to another use other than that for which PhilHealth funds were appropriated,” the petition read.
The petitioners argue for a temporary restraining order, claiming irreparable damage once the funds are disbursed. "There is irreparable damage because once the P89.9 billion is disbursed, Sec. Recto cannot return the money because the amount is so huge. His assets will not be sufficient to pay for the damage," the petition states.
Previous petitions
This is the third petition filed on the PhilHealth fund transfer. The Supreme Court has consolidated the previous two petitions and set oral arguments for January 2025.
In response, the Office of the Solicitor General has asked the Supreme Court to dismiss the pleas, arguing that the challenged Department of Finance Circular and the General Appropriations Act are constitutional and do not violate the people's right to health.