PhilHealth suspends 5 officials over P114-M diversion of premium payments

MANILA, Philippines - The Philippine Health Insurance Corp. (PhilHealth) imposed yesterday a 90-day preventive suspension against five of the firm’s officials and personnel who were implicated in the diversion of P114-million worth of premium payments from a private company.

In a press briefing, PhilHealth president and chief executive officer Eduardo Banzon said that administrative charges would be filed against the five officials who were suspected to have been involved or have indirectly contributed to the commission of the anomalous transaction.

Banzon refused to identify the officials but he claimed that they belonged to the Information Technology and Management Department that has the “ability to access” the agency’s database. One of them is occupying a senior management position.

He claimed that the National Bureau of Investigation (NBI) and the Anti-Money Laundering Council (AMLAC) are now investigating the criminal liability of the suspects.

The anomaly was uncovered when PhilHealth’s Treasury Department noticed discrepancies in the premium collection records of Accenture Inc., a global management consulting, technology services and outsourcing company that employs 22,000 workers.

Former senator Ernesto Maceda exposed the anomaly in his column “Search for Truth” in The STAR.

Banzon said the “fictitious crediting of premium payments to Accenture in our treasury and membership database happened from October to December 2010 and from February to September 2011 and involve 10 checks worth P114 million.

“However, ongoing investigation found that the initial attempts of these anomalous transactions started in late 2009,” he noted. 

PhilHealth is now reviewing its records before this period to determine if similar irregularities were committed in the past.

Banzon clarified that Accenture’s premium payments “never reached PhilHealth” but they were diverted and irregularly encashed at two branches of a commercial bank in Batangas.

He added that to cover up the fund diversion, PhilHealth’s database was tampered to make it appear that the premium payments of Accenture had been remitted to PhilHealth and therefore made the private firm’s employees eligible for benefits.

Accenture employees were assured that their PhilHealth benefits would not be affected by the scam as the company had been “billed for the amount corresponding to the diverted premiums and the amount of availment of their employees for the particular period.”

Banzon refused to say if Accenture insiders were involved in the irregularity.

He assured the PhilHealth members that measures have been taken to make sure that the agency’s database will not be accessed illegally.

Banzon said that information technology experts from the University of the Philippines’ Department of Computer Science and Department of Science and Technology, among others, are now helping PhilHealth protect the agency’s records.

“Let me assure our members that we are doing this in the spirit of good governance. We want to make sure that this will not happen again, that is why we are bent on going after those who are truly accountable,” he added. 

Meanwhile, PhilHealth refused to comment on the corruption case that will be filed against former President and now Pampanga Rep. Gloria Macapagal-Arroyo concerning the alleged misuse of some P550 million in Overseas Workers Welfare Administration (OWWA) funds during her term in 2003.

“No comment yet,” said Banzon who assured the people that the agency will assist in any investigation or court proceeding involving the issue.

The Department of Justice (DOJ) recommended the filing of technical malversation charges against Arroyo, former executive secretary Alberto Romulo, former health secretary Francisco Duque III and former OWWA administrator Virgilio Angelo.

The charges stemmed from the complaint filed by former solicitor general Frank Chavez that OWWA Medicare Funds could be the source of millions of PhilHealth cards distributed by Arroyo before the 2004 presidential elections.

Banzon said the overseas Filipino workers (OFWs) program is a “key component of PhilHealth and we have been doing every effort to improve the program.”

“We believe that the National Health Insurance Program for all Filipinos and OFWs should be included. All information and benefits provided to members will be available (if needed by the court). Under my watch, no scam will be tolerated,” he added.

The DOJ found that disbursements of OWWA funds worth $293,500 or P16,510,900 to finance preparatory activities of the Philippine post in Kuwait, to purchase vehicle and for stockpiling of diplomatic posts in Lebanon, Jordan, Oman, Bahrain, Egypt and Iran in support of the United States-led war in Iraq had “no legal basis” since they did not serve the purpose of the funds that should benefit OFWs.

The department had similar conclusion on the transfer of OWWA funds worth P530,382,446 to PhilHealth.