Finance Secretary Ralph Recto is facing mounting pressure to reverse his directive requiring the state health insurer, Philippine Health Insurance Corp. (PhilHealth), to transfer excess funds to the national treasury.
The latest critics include a group led by retired Supreme Court Justice Antonio Carpio and lawyer Howard Calleja.
In a letter dated August 22, Carpio and Calleja – convenor of the multisectoral group 1Sambayan – argued that the fund transfers violate constitutional provisions.
They claim that only the President, not the finance secretary, has the authority to move savings within the Executive Branch's appropriations as outlined in the General Appropriations Act (GAA).
Carpio and Calleja further stressed that the delegation of power to the finance secretary to transfer funds from government-owned and controlled corporations (GOCCs) to the Treasury constitutes an unconstitutional delegation of presidential authority.
They also contend that the transfers could be classified as technical malversation and even plunder.
PhilHealth's funds are special funds designated for universal health coverage and should not be diverted to unprogrammed appropriations, including the congressional pork barrel, the convenors stated.
If Recto does not reverse the directive, Carpio and Calleja indicated they may challenge the transfers in court.
Solons’ criticisms
Former Senator Panfilo Lacson has also criticized the fund transfers, asserting that they contravene the PhilHealth Law and the Universal Health Care Act.
Lacson highlighted that the increase in premiums, despite the excess funds, undermines the justification for reallocating these resources.
Senate Minority Leader Aquilino Pimentel III and other advocates have previously petitioned the Supreme Court to declare unconstitutional the GAA provision and the Department of Finance (DOF) circular that authorized the fund transfers.
The DOF defends the transfers, arguing that utilizing these "sleeping funds" will prevent the need for additional loans and stimulate economic growth.
DOF Director Euvimil Nina Asuncion stated that using these funds could boost GDP growth by 0.7 percent and create more jobs.
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