Garin denies transfer of P10.6-B ‘senior citizens fund’ to health facilities construction

Former Health secretary Janette Garin on Wednesday denied allegations that she requested the Department of Budget and Management (DBM) to divert the P10.6-million fund for the expanded Senior Citizens Act to the construction of rural health units in 2015, causing a depletion in the Philippine Health Insurance Corp's (PhilHealth) reserve fund.

Garin said it was instead a letter request to the DBM to pay its debts to PhilHealth, and that the amount was not meant for senior citizens alone.

"Hindi po totoo na nag-request kami ng transfer of funds because in the first place, there was no fund in PhilHealth to the amount of P10.6 billion," Garin said in a Dobol B sa News TV interview.

"Meron pong nasa budget na unprogrammed funds. Noong sumulat po kami prior to that, ilang representation na ako sa DBM na sinusuportahan ko 'yung paniningil na ginagawa ng PhilHealth na may utang daw ang DBM sa kanila," she added.

"Bottomline po is, 'yung pondo po is sa pangkalahatan ng DOH... It's not directly earmarked for the senior citizens, it is unprogrammed funds for health expenditure, puwedeng gamitin sa PhilHealth," she added.

Senior citizens fund

Garin explained that the DBM had actually not granted any funding for senior citizens because PhilHealth had failed to meet certain conditions.

"No, it's in the GAA (General Appropriations Act). It's called unprogrammed funds... 'Yung unprogrammed funds, nakalista siya sa budget pero meron pong conditionalities. Meron pong certain conditions for it to be funded. Mapopondohan lang 'yon kapag ikaw ay nag-exceed sa collection. In this case, there was no excess in the sin tax collection kaya hindi ni-release ng DBM," she said.

Garin reiterated that when she assumed office, the DBM refused to release some of PhilHealth's collectibles due to some fraudulent and bloated financials discovered in its system.

"Ibig sabihin, andami nilang dine-declare na collectibles pero kung tingnan mo sa financial accounting hindi puwede kasi hindi ka puwede mag-retroactive enrollment," she said.

The former health secretary said the financial management of PhilHealth "should also be looked into." For this, Garin suggested that an audit team, preferably an external one, should be tapped to look into the financial problems supposedly plaguing PhilHealth.

"Marami po kaming alam. Minsan ang dine-declare ganito 'yung collection nila in paper, pero ang totoo, maraming bungi bungi. Huwag isisi sa akin, huwag isisi sa nakaraang administrasyon 'yung naging outcome ng PhilHealth because this has been a problem over the years that was aggravated with a poor management and a poor leadership of PhilHealth.

Garin blamed "politics" for the accusations being hurled against her, claiming Dr. Anthony Leachon, representative of the Monetary Board in the PhilHealth Board and allegedly aspiring to become PhilHealth president, had an ax to grind with her.

Garin recalled how she — while still Health chief — denied upon consultation with her DOH staff a recommendation to name Leachon as Health undersecretary.

Garin blamed Leachon for PhilHealth's financial disaster, saying the latter had promised its employees a wage increase but mismanaged the agency's coffers.

"Ang pinapakita po nila na 'Ganito ang pera namin kaya dapat ganito 'yung corporate operating budget.' Eh bakit ka gagastos ng pera na wala pa sa inyo at hinihingi at naghahanap ka pa lang? Hindi yata puwede 'yon. At hindi nila puwedeng sisihin ako o 'yung nakaraang administrasyon na andaming payables kasi ang totoo nga, the institution is highly mismanaged," she said.

Regarding the 3,200 rural centers that were supposed to have been completed but only 217 had certificates of completion as of the moment, Garin recommends the cancellation of the bidder's contract with the Department of Public Works and Highways (DPWH).

She said she handled the bidding with the LGUs but was put on hold pending the funding from the DBM, and that the DPWH disapproved with the Department of Health (DOH)'s costings.

Garin said she already called for the suspension of the program. However, when former Health secretary Paulyn Ubial took over her position, Ubial extended the contract.

"I am not blaming her, yet tingnan natin. Kung hindi maka-deliver ang contractor, huwag bayaran at i-cancel," Garin said.

"Yet I insist, hindi po totoo na kinuhanan ng pera ang senior citizens para gamitin sa barangay health stations at sa rural health centers," she added. —Jamil Santos/MDM/KG, GMA News