Ombudsman clears Ralph Recto, PhilHealth chief Ledesma over P60B fund transfer

The Ombudsman has dismissed the criminal and administrative complaints filed against Executive Secretary Ralph G. Recto and Philippine Health Insurance Corp. (PhilHealth) president and CEO Emmanuel Rufino Ledesma Jr.

The raps were in connection with the transfer of P60 billion in PhilHealth reserve funds to the National Treasury when he was still the Secretary of Finance.

The complaints alleged technical malversation, violations of Section 3 of Republic Act No. 3019, and plunder arising from the transfer of PhilHealth reserve funds pursuant to provisions of the 2024 General Appropriations Act (GAA).

In a 40-page consolidated resolution, the Ombudsman said the actions of Recto and Ledesma did not constitute the crimes alleged against them because the transfer of funds was provided for under the 2024 General Appropriations Act or the national budget.

“All things considered, respondents' criminal liability was not proven with reasonable certainty in order for them to be indicted. Complainants failed to prove the existence of a corrupt intent, dishonest design and unethical interest which goes to the very nature of the offenses charged,” the resolution read.

“The gravamen of the offense of plunder is the amassing, accumulation

or acquisition of ill-gotten wealth amounting to at least P50 million. It is

this element of amassing, accumulation, or acquisition of ill-gotten wealth that converts the criminal acts of misappropriation, conversion, misuse, or

malversation of public funds or raids on the public treasury into plunder.

Without this core element, there can be no plunder,” it added.

The Ombudsman also said that Recto ultimately decided to return the P60 billion funds to PhilHealth in compliance with a 2025 Supreme Court decision declaring the budget law provision allowing such transfer illegal, making the allegation of personal enrichment without basis.

“The return of the P60 billion to PhilHealth militates against the allegation that respondents took advantage of their positions for “personal enrichment,’” the Ombudsman said.

In dismissing the administrative complaint, the Ombudsman said, “On the administrative aspect of the complaint, the elements of corruption, clear intent to violate the law or flagrant and palpable breach of duty are not manifest in the present case.”

“In the absence of contrary evidence, what will prevail is the presumption that respondents regularly performed their duties,” the resolution said. –NB, GMA News