Plunder, graft raps vs Recto dismissed

MANILA, Philippines — The ombudsman has cleared Executive Secretary Ralph Recto and former Philippine Health Insurance Corp. (PhilHealth) president Emmanuel Ledesma of charges including technical malversation, plunder and graft over the transfer of P60 billion worth of PhilHealth reserve funds to the National Treasury in 2024.

In its 40-page consolidated resolution promulgated last June 2, Ombudsman Jesus Crispin Remulla “approved” the dismissal of the complaints against Recto and Ledesma for technical malversation, plunder and violations under Section 3 of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.

A copy of the resolution was shared with reporters yesterday, but Assistant Ombudsman Mico Clavano asked to “allow me to check ASAP.”

The three sets of complaints against Recto and Ledesma were all dismissed “for lack of prima facie evidence with reasonable certainty of conviction,” according to the resolution.

The ombudsman declared respondents Recto – who was Department of Finance (DOF) secretary when he was slapped with the complaints – and Ledesma “caused the transfer of the P60-billion PhilHealth Reserve Funds to the National Treasury as necessary and/or incidental to the enactment of Special Provision 1 (d) (of the 2024 General Appropriations Act) – which acts were considered valid and legal prior to the pronouncement of the Supreme Court in Pimentel.”

It referred to the high tribunal’s decision in December 2025 that ordered the return of the P60-billion reserve funds to the PhilHealth under the 2026 national budget.

“The DOF Circular No. 003-2024 attached to the Taton et al. complaint, which is the only evidence provided by the complainants, is insufficient to prove respondents’ intent to perpetrate the offense, considering that the act of issuing the said circular is not illegal, having been done within the authority and functions of DOF Secretary Recto,” the ombudsman added, referring to the offense of technical malversation alleged against them.

The SC ruling declared as void both Special Provision 1 (d) and the DOF circular “for having been issued and implemented with grave abuse of discretion amounting to lack or excess of jurisdiction.”

Meanwhile, there was lack of proof to charge Recto and Ledesma with graft as “the actions of respondents in this case were actually aligned and done in the faithful exercise of their respective official duties as DOF secretary and PhilHealth president/CEO, respectively, to the implementation of Special Provision 1(d),” according to the ombudsman.

Additionally, the ombudsman found Recto and Ledesma were not liable for plunder “for his commitment to return the P60 billion to PhilHealth,” referring to Recto.

“Thus, the return of the P60 billion to PhilHealth militates against the allegation that respondents took advantage of their positions for ‘personal enrichment,’” it noted.