Executive Secretary Ralph Recto dismissed the latest complaint over the transfer of PhilHealth funds as a “nuisance” and “harassment” case, insisting that he merely followed a congressional mandate under the 2024 national budget when he was finance secretary.
In a strongly worded statement on Monday, Executive Secretary Recto said the case should be thrown out, citing separate opinions of Supreme Court justices who said criminal liability should not attach to him for implementing Special Provision No. 1(d) of the 2024 General Appropriations Act.
“This is nothing but a nuisance and a harassment case. And it should not be tossed aside gently. It should be thrown out with great force,” the Executive Secretary said.
The statement came after physician and health advocate Dr. Tony Leachon, through counsel, filed plunder and technical malversation charges against Recto and other officials before the Office of the Ombudsman in connection with the transfer of PhilHealth funds to the national treasury.
Recto maintained that the transfer was ordered by law, saying Congress directed the Department of Finance to carry out the remittance.
“At the onset, the transfer was mandated by law under the General Appropriations Act of 2024. Inutusan ng Kongreso ang Department of Finance Secretary,” he said.
The controversy stems from the transfer of P60 billion in PhilHealth funds to the national treasury. The Supreme Court earlier ordered the return of the P60 billion and permanently barred the transfer of the remaining P29.9 billion in PhilHealth funds. The decision, however, did not rule on Recto’s criminal liability because the petitions before the Court were limited to the issue of grave abuse of discretion.
Recto cited the separate opinions of several justices who found that he acted in good faith and in compliance with a law then presumed valid.
Quoting Associate Justice Raul Villanueva, Recto said holding him liable would be “like punishing him for simply doing his job.”
He also cited Associate Justice Ricardo Rosario, who said no liability for technical malversation may attach because officials carried out a statutory command in good faith and without intent to divert funds contrary to legislative will.
Recto further invoked the opinion of Associate Justice Rodil Zalameda, who said the finance secretary’s actions were ministerial and based on the “explicit and mandatory language” of the 2024 GAA provision.
He said Associate Justices Samuel Gaerlan and Jhosep Lopez also noted that the claims of plunder or technical malversation were not substantiated based on the records of the case.
Recto said P60 billion had already been returned to PhilHealth’s coffers.
He also denied claims that he personally benefited from the PhilHealth funds, calling the allegation “an outright falsehood” and “libelous.”
“An elementary understanding of public expenditure would lead one to conclude that I was not and never in a position to have been able to touch a single centavo of it,” Recto said.
He said accusations that he enriched himself had “no iota of truth,” adding that he would not allow what he described as a campaign of slander to go unanswered.
The government previously said it had fully complied with the Supreme Court ruling and that PhilHealth funding had since been restored and increased. In earlier statements, Recto also said he respected the right of individuals and groups to seek legal remedies but maintained that he acted in good faith under congressional authority.
The new complaint keeps alive the political and legal fallout from the PhilHealth fund transfer, a controversy that has pitted fiscal authorities’ reliance on the 2024 budget law against health advocates’ argument that state health insurance funds should remain protected for the benefit of PhilHealth members.
The controversy also drew attention online after screenshots circulated allegedly showing Rep. Leandro Leviste sharing materials connected to Leachon’s accusations with media contacts and in Viber groups. The screenshots have not been independently verified, and Leviste has not publicly commented on the allegation as of posting.