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Elizabeth Marcelo - The Philippine Star
January 16, 2026 | 12:00am
MANILA, Philippines — A group of doctors, lawyers and members of Philippine Health Insurance Corp. have filed a criminal and administrative complaint before the Office of the Ombudsman against Executive Secretary Ralph Recto and former PhilHealth president and chief executive officer Emmanuel Ledesma Jr. in connection with the transfer of P60 billion in excess fund of the health insurer to the national treasury.
In their 33-page complaint affidavit filed yesterday, the complainants – composed mostly of doctors based in Iloilo – urged the ombudsman to investigate Recto and Ledesma for possible criminal offenses of plunder, technical malversation and graft as well as for the administrative offense of grave misconduct.
The complainants said Recto and Ledesma must be held criminally and administratively liable for their blatant violation of existing laws explicitly prohibiting the return of PhilHealth’s Reserve Funds to the general fund of the government.
Reacting to the filing of the complaint, Recto insisted the government has adhered to the Supreme Court’s decision on the PhilHealth funds.
“The issue has already been addressed by the Supreme Court, and the government has fully complied with its ruling. Consistent with this, funding for PhilHealth has since been restored and even augmented in order to better serve our countrymen,” Recto said in a statement.
“Let me also reiterate my innocence, as opined by Supreme Court justices, that no criminal liability may attach to me, as former secretary of finance, for acting in good faith and in accordance with a direct mandate from Congress in ordering the remittance of PhilHealth’s unused funds,” he added.
Recto vowed to continue to uphold the rule of law, respect due process and work to uplift the lives of Filipinos.
“We remain confident that the facts and the law are clear, and that the appropriate institutions will evaluate any allegations fairly and objectively,” he said.
“I will not get distracted by political noise. The work of improving government performance and services is my priority,” he maintained.
‘In good faith’
At a briefing, Recto maintained that he issued DOF Circular No. 003-2024 “in good faith” and thus, the SC – while declaring the circular as void and unconstitutional – did not find any criminal liability on his part.
“The issue has already been addressed by the Supreme Court, and the government has fully complied with its ruling. Consistent with this, funding for PhilHealth has since been restored and even augmented in order to better serve our countrymen,” Recto said.
The complainants, however, cited the recent ruling of the Supreme Court declaring the P60 billion transfer of PhilHealth’s excess funds to the national treasury as unconstitutional and ordered its return to PhilHealth through the 2026 General Appropriations Act (GAA).
The complainants also cited Section 11 of Republic Act 11223 or the Universal Health Care Act (UHCA) which requires PhilHealth to maintain reserve funds up to a ceiling equivalent to two years of projected program expenses.
The same provision of UHCA also states that any excess from the reserve fund ceiling shall not be returned to the national treasury but must instead be used by PhilHealth to increase program benefits for members or decrease the amount of members’ contributions.
“Indeed, the respondents are being charged with Plunder committed through Section 1 (d) (1 & 6) of RA 7080 (Anti-Plunder Law) because of a persistent pattern of transferring (excess) reserve funds from government-owned and controlled corporations (GOCCs) such as PhilHealth when ghost and substandard projects are prevalent funded through unprogrammed appropriation,” the complaint read.
“The amount involved is far more than the threshold amount of PhP50 Million as provided under the Anti-Plunder Act,” it added.
Ledesma, meanwhile, must be held liable for his acquiescence to the DOF Circular despite knowing that it is against the provision of the UHCA and the PhilHealth Act, the complainants pointed out.
“Without doubt, when Respondents Recto and Ledesma Jr. caused the transfer of P60 billion from PhilHealth excess reserve funds to the National Treasury to fund unappropriated programs, they committed deliberate transgression of the law, specifically RA 7875 as amended, and RA 11223,” the complainants said.
“Indeed, the facts of the surrounding case shows a clear intent to violate the law and constitute flagrant disregard of an established rule,” they added.
Ombudsman Jesus Crispin Remulla said his office would thoroughly evaluate the complaint.
“If we find it to be properly done and the legal basis to be solid, then we will proceed [with the investigation],” Remulla said.
New MAIFIP rules
The Department of Health (DOH), in a post on social media, said it is set to come up with new guidelines for its Medical Assistance for Indigent and Financially Incapacitated Persons (MAIFIP) program.
The move is in response to President Marcos’ directive to Health Secretary Ted Herbosa to ensure that medical financial aid for Filipinos is easily accessible and without intervention from politicians.
But a group of private hospitals said it will continue to accept guarantee letters issued by politicians to patients while awaiting an official order from the DOH to disregard the practice.
The Private Hospitals Association of the Philippines Inc. (PHAPI) said though there are already congressmen who stopped issuing guarantee letters, several of their hospitals continue to honor them when presented by patients.
“So far, the Department of Health has no advice yet regarding the MAIFIP so most hospitals continue accepting it (GLs). It is better than doing promissory notes,” PHAPI president Dr. Jose Rene de Grano said in an interview.
Sen. Risa Hontiveros, for her part, urged the DOH to ensure that its plan to draft a new administrative order on medical assistance would strike out the requirement for guarantee letters.- .Alexis Romero, Rhodina Villanueva, Marc Jayson Cayabyab
