Supreme Court blocks transfer of Philhealth funds to nat’l treasury
MANILA, Philippines — The Supreme Court on Tuesday, October 29, issued a temporary restraining order (TRO) against the transfer of the remaining unused funds of the state-run Philippine Health Insurance Corp. (PhilHealth) to the national treasury.
In a press briefing, Supreme Court spokesperson Camille Ting said the respondents of the third petition against the fund transfer are also ordered to comment on the petition.
“The Court further required the Office of the Clerk of Court En Banc to personally serve the Court’s resolution on the respondents, who shall likewise file and serve their comments,” Ting said.
With the issuance of the restraining order, the remaining P29.9 billion, expected to be transferred in November, will remain in the coffers of the state-run health insurance agency.
The first tranche of unused funds, amounting to P20 billion, was transferred on May 10, followed by the second tranche of P10 billion on August 21.
The third tranche, totaling P30 billion, was transferred on October 16.
In an interview with Philstar.com on October 16, human rights lawyer Neri Colmenares, one of the petitioners, said the amount already transferred to the national treasury could be returned to PhilHealth if the high court issues a status quo ante order.
A status quo ante order is an order that a court issues to return a situation or state of affairs that existed previously.
Ting said it is still possible for the court to tackle the matter of a status quo ante order.
Reactions
In a statement sent to reporters, PhilHealth said it would respect the court’s decision and abide by the restraining order.
“We remain focused on our mission to provide all Filipinos with adequate financial protection against health risks through better and responsive benefit packages and availment policies that ensure greater access to healthcare services whenever and wherever they need them most,” PhilHealth’s statement read.
Meanwhile, Finance Secretary Ralph Recto noted that they will respect the court’s decision, emphasizing that the transfer of funds from government-owned and controlled corporations is mandated by the General Appropriations Act of 2024.
“We respect the Supreme Court’s intervention. As a public servant, I recognize the right of every citizen to seek redress from the courts. Rest assured that the Department of Finance will fully comply with the order of the Supreme Court,” Recto said in a statement sent to Philstar.com.
“We reiterate that before proceeding with the utilization of GOCC idle funds, our agency exercised due diligence and consulted extensively with the government’s legal experts. These include the Governance Commission for GOCCs, the Government Corporate Counsel, and the Commission on Audit. These efforts were undertaken to ensure full compliance with our laws,” he added.
In separate statements, the petitioners lauded the high court’s issuance of the restraining order.
For Colmenares, this is a “significant victory,” especially for PhilHealth beneficiaries who rely on the agency for their healthcare needs.
“The transfer of these funds would have jeopardized the benefits of countless Filipinos relying on PhilHealth for essential health services. This decision prevents a grave injustice from occurring,” the human rights lawyer said.
This sentiment was echoed by another petitioner, Sen. Koko Pimentel.
“We welcome this development so that at least the PhilHealth funds will not be dissipated pending the resolution of the case. In my belief, those funds are members' contributions and should be treated as ‘sacred funds,’” Pimentel said in a message to Philstar.com.
Meanwhile, former Senior Associate Justice Antonio Carpio stated the TRO “saves the poorest of the poor Filipinos” who rely on PhilHealth for their medicines.
“We hope that the Executive Branch will return all the transferred funds back to PhilHealth pending the final decision of the Supreme Court,” Carpio said in a message to Philstar.com.
Petitions
There are three petitions challenging the transfer of the unused funds.
The first is the Pimentel-led petition, along with former Finance Secretary Cielo Magno and other groups. They challenged the memorandum circular issued by the Department of Finance allowing the transfer of funds, arguing that it is unconstitutional.
The second petition was filed on September 6 by former representatives of Bayan Muna Party-list led by Colmenares.
The third petition was filed on October 16 by Carpio, lawyer Howard Calleja, and former Ombudsman Conchita Carpio-Morales, along with the 1Sambayan Coalition. They argued the constitution only grants the authority to transfer appropriations to certain high-ranking officials, which does not include Recto.
The Carpio-led petition argued that PhilHealth funds are “special funds” and should not be considered government savings.
According to the petitioners, these funds cannot be redirected unless their original purpose has been either fully achieved or discontinued, neither of which applies to PhilHealth.
The oral arguments for the case before the Supreme Court are scheduled for Jan. 14, 2025.
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