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By Chloe Mari A. Hufana, Reporter
THE SUPREME COURT (SC) issued on Tuesday a brief restraining order (TRO) on the further transfer of excess funds of Philippine Health Insurance Corp. (PhilHealth) to the National Treasury.
“The TRO is effective immediately,” SC Spokesperson Camille Sue Mae L. Ting said. “The TRO is just really to stop the further transfer of more funds from PhilHealth to the National Treasury.”
The SC consolidated the petitions filed by 1SAMBAYAN Coalition, a bunch led by Senator Aquilino Martin “Koko” D. Pimentel III and one other group led by Bayan Muna Chairman Neri J. Colmenares.
The three petitions were filed to stop the transfer of P89.9 billion in excess funds from PhilHealth to the National Treasury.
“All three petitions challenge the return of excess reserve funds from government-owned and -controlled corporations to the National Treasury to fund unprogrammed appropriations,” the SC public information office said in a press release.
The TRO was issued after P60 billion in PhilHealth funds have already been transferred to the Treasury in three tranches since May.
A fourth and final tranche price P29.9 billion was scheduled to be transferred to the Treasury in November.
Ms. Ting said it remains to be possible for the High Court to tackle the plea for a establishment ante order, which could allow the return of the P60 billion to PhilHealth’s coffers.
The oral arguments scheduled for Jan. 14, 2025, would push through, she added.
A replica of the TRO had yet to be released.
In a press release, Finance Secretary Ralph G. Recto said the department “respects the Supreme Court’s intervention.”
“I recognize the fitting of each citizen to hunt redress from the courts. Rest assured that the DoF (Department of Finance) will fully comply with the order of the Supreme Court,” he said.
“We give our full cooperation to the Supreme Court as we sit up for the chance to make clear the problems presented throughout the oral arguments.”
A provision included within the 2024 General Appropriations Act allowed the DoF to issue Circular No. 003-2024, authorizing PhilHealth and the Philippine Deposit Insurance Corp. to transfer P89.9 billion and P110 billion, respectively.
These would help fund unprogrammed appropriations price P203.1 billion, which might support government programs in health, infrastructure and social services.
“We reiterate that before proceeding with the utilization of GOCC (government-owned or -controlled corporation) idle funds, our agency exercised due diligence and consulted extensively with the federal government’s legal experts,” Mr. Recto said.
“These include the Governance Commission for GOCCs, the Government Corporate Counsel and the Commission on Audit. These efforts were undertaken to make sure full compliance with our laws,” he added.
In a press release, PhilHealth said it fully respects and can abide by the ruling.
PhilHealth said it stays focused on its mission to supply healthcare to Filipinos through “higher and responsive benefit packages and availment policies that ensure greater access to healthcare services.”
Solicitor-General Menardo I. Guevarra, whose office represents government agencies in legal cases, said they might “respect the TRO,” noting that it’s “limited to PhilHealth funds only.”
One in every of the petitioners, former SC Senior Associate Justice Antonio T. Carpio, said the TRO “saves the poorest of the poor of Filipinos… whose only source of life-saving medicine is PhilHealth.”
“We hope that the Executive branch will return all of the transferred funds back to PhilHealth pending the ultimate decision of the Supreme Court,” he said in a Viber group chat message with reporters.
Mr. Carpio, together with 1SAMBAYAN, said of their petition that since PhilHealth funds are “special funds,” they can not be transferred unless their purpose has been abandoned or completed.
They added that the fund transfers violated Article VI, Section 25 (5) of the Structure. Under the Charter, “no law shall be passed authorizing any transfer of appropriations.”
Former Finance Undersecretary Cielo D. Magno, who filed the first petition questioning the transfer with Mr. Pimentel, said they’re hoping the highest court would declare the fund transfer as unconstitutional.
“This measure will temporarily stop the financial hemorrhage of PhilHealth,” she told BusinessWorld in a Viber message.
