Lawmaker says Tingog Party-List won't handle PhilHealth, DBP funds in healthcare financing program

MANILA, Philippines — A Tingog Party-List representative said on Monday, December 16, that the group will not manage any government funds under the memorandum for the program aimed at expanding hospital infrastructure and healthcare financing.

Rep. Jude Acidre (Tingog Party-List) addressed in his privilege speech on Monday the controversies surrounding the memorandum his party-list signed with the Development Bank of the Philippines (DBP) and Philippine Health Insurance Corp. (PhilHealth). 

The memorandum for the Maalagang Republika: Rural Financing Health Development Program, signed on December 6, seeks to build more hospitals and provide funding for underfunded rural healthcare facilities.

“The funds are managed by DBP and PhilHealth. All we’re doing is lending a hand to these local government units that don’t have the technical capacity to go through these complex processes on their own,” Acidre said. 

The party-list representative emphasized in his speech that Tingog’s focus is on its advocacy. Acidre said they want to help local governments “navigate the tedious process of applying for loans” for hospital upgrades.

“Tingog’s role in this program is simple and clear: advocacy and assistance. We do not touch the funds, we don’t choose which LGUs participate,” he added. 

What’s being criticized 

Since the program’s funds will be sourced from the DBP and PhilHealth, health and finance experts have criticized the memorandum, warning of the potential for corruption and misuse of funds to gain support from local government units (LGUs) for the 2025 midterm elections.

One of its strongest critics, former Health Secretary Tony Leachon, called the memorandum “patently illegal” on December 9, saying it may also be unconstitutional for violating the non-partisanship mandate of government programs.

“This particular MOA (memorandum of agreement) to me is patently illegal, unconstitutional and there might be signs of electioneering,” he said in an interview with ANC. 

Former Finance Undersecretary Cielo Magno also said in a podcast on December 11 that the memorandum is not just a form of “political patronage,” but could also lead to corruption.

Leachon argued that a third party is unnecessary since the Universal Healthcare Law tasks PhilHealth and the DOH with expanding hospital infrastructure and providing the “technical assistance” such as consultation and advisory services.

“It’s not in the mandate of PhilHealth to provide funding for LGU facilities because that’s the responsibility and job of the DOH,” he said.

“You don’t need a third party to do that. They’re an independent agency. … So why do you need a third party to force PhilHealth to fulfill its duties?” Leachon added.   

He also said that the legislative branch should not be involved in the budget execution of this program. 

According to Acidre, Tingog's role is to facilitate the preparation of “hospital development plans” and “financial and operational feasibility studies” for LGUs. 

Leachon also questioned whether Tingog would be involved in the procurement and bidding processes for training, support and facilities, stressing that these fall under the DOH's responsibilities.

Tingog’s defense

Acidre explained that the MOA “ensures that funds are used for their intended purpose” and will be spent and accounted for according to the Commission on Audit’s guidelines. 

He added that LGUs are still required to comply with procurement laws and DBP charter should they participate in the program. 

The lawmaker countered the argument that the memorandum violates the Universal Healthcare Law, saying that PhilHealth cannot reimburse hospitals “if there are no hospitals to begin with.”

In an earlier statement, Tingog clarified that their role is to complement agencies like the DOH by building LGU capacity, facilitating access to DBP’s credit facility, and providing direct medical assistance programs.

Rep. Janette Garin (Iloilo, 1st District) defended the MOA during the plenary session on Monday, saying that the funds will not be transferred to Tingog. 

“Financial arrangements are strictly between the DBP and LGUs, all subject to DBP's mechanisms for accessing the loan,” she added.

Tingog Party-List is also represented by Yedda Marie Romualdez, the wife of House Speaker Martin Romualdez.