Morales' move to quit won't absolve him, Palace says as Duterte accepts resignation

MANILA, Philippines — President Rodrigo Duterte has accepted the resignation of Philippine Health Insurance Corp. (PhilHealth) president Ricardo Morales but his decision to quit won't absolve him of possible criminal and administrative liabilities, Malacañang said Thursday.

Morales, who has been in hot water over the alleged fraudulent schemes in PhilHealth, resigned from his post last Wednesday after Duterte advised him to do so supposedly to allow him to attend to his health issues. His resignation came as a multi-agency task force is looking into allegations that a "mafia" in the state-run insurer has pocketed billions in funds through anomalous transactions.

"The resignation of general Morales has been accepted. There is no replacement yet," presidential spokesman Harry Roque said at a press briefing.

"The president has always been of the opinion that health should come first. He is hoping that the resignation of Gen. Morales will lead to the recovery of general Morales from his current ailment," he added.

Morales, a retired Army general, is suffering from lymphoma and has been advised by his doctor to go on leave to undergo chemotherapy. Roque previously said Duterte won't pressure Morales to resign while authorities are investigating the alleged massive corruption in PhilHealth.

Among the irregularities tied to PhilHealth are the padding of hospital claims to the health insurer, the procurement of allegedly overpriced coronavirus test kits and information technology equipment, and the unauthorized release of funds to hospitals that have not yet logged coronavirus cases. PhilHealth officials have denied the allegations and have promised to cooperate with investigators.

Roque said PhilHealth officials may still face charges even if they quit their posts.

"The law is very clear: If there is a criminal liability incurred when you are in office, it subsists; and public officers can be held liable for them whether or not they continue to be in office," the Palace spokesman said.

Roque said there is no timeline for the naming of Morales' successor but expressed hope that the next PhilHealth chief would help the state-run insurer regain the public's trust.

"The replacement should have no record of corruption, should have managerial skills, should have skills in the field of insurance and health service. Since PhilHealth is not just an insurance company but also the implementer of universal healthcare, the successor should have a background in community health and public health," he said.

"We do not lack people who are capable of providing service but the president will choose the one who has the qualifications that will allow PhilHealth to recover. The president admits that PhilHealth requires his personal attention... He needs someone who can help him restore the public's trust in PhilHealth."

Roque said the president is already considering some names for the post but is very careful in making his choice. The Palace spokesman also shrugged off Morales' comment that he can now take over PhilHealth.

"I’m praying for your good health. May you recover and may you live long," said Roque, who previously criticized Morales for supposedly failing to cleanse PhilHealth of corruption.

Pressed if he is willing to take over PhilHealth, Roque replied: "I’m presidential spokesperson. I’m busy with my job right now."