Plunder, malversation complaints filed vs Recto, Ledesma over PhilHealth funds

A coalition of doctors, health advocates, lawyers, and PhilHealth members filed Thursday complaints against former Finance chief now Executive Secretary Ralph Recto and former PhilHealth president and chief executive officer Emmanuel Ledesma Jr. over the transfer of P60 billion worth of excess PhilHealth funds to National Treasury.

Complaints for plunder, technical malversation, graft, and other related administrative complaints were filed with the Office of the Ombudsman. 

"The transfer caused substantial prejudice to PhilHealth and its members, including estimated lost interest income exceeding P50 million that could have been used to enhance benefits and ease member contributions," the complainants said in a statement. 

In December 2025, the Supreme Court ordered the government to return the P60 billion excess funds back to PhilHealth through the 2026 General Appropriations Act (GAA).

In a 136-page decision, the SC En Banc declared void the Special Provision 1(d), Chapter XLIII of the 2024 GAA, Finance Circular No. 003-2024, and the transfer of the P60 billion for having been issued with grave abuse of discretion amounting to lack or excess of jurisdiction.

The Special Provision 1(d) authorized the return of the excess funds of government-owned or controlled corporations to the national treasury while the DOF circular directed the transfer of P89.9 billion from PhilHealth to the national treasury.

PhilHealth already remitted P60 billion before the SC issued a temporary restraining order to halt the transfer of the remaining P29.9 billion.

"Regardless if they spent the transferred money or not, the transfer violated our laws," lawyer Rodel Taton, one of the complainants, told reporters.

In a press statement, Recto said he respects the right of any individual or group to seek legal remedies and to avail themselves of the processes provided under our laws in connection with this issue,

He pointed out that the matter has already been addressed by the Supreme Court, and the government has fully complied with its ruling. 

''Consistent with this, funding for PhilHealth has since been restored and even augmented in order to better serve our countrymen,'' Recto said.

''Let me also reiterate my innocence, as opined by Supreme Court Justices, that no criminal liability may attach to me, as former Secretary of Finance, for acting in good faith and in accordance with a direct mandate from Congress in ordering the remittance of PhilHealth’s unused funds,'' he added.

Recto vowed that he would continue to uphold the rule of law, respect due process, and work to uplift the lives of our kababayan. 

''I will not get distracted by political noise. The work of improving government performance and services is my priority,'' he said.

GMA News Online reached out to Ledesma for comment and will publish it once available. —with a report from Anna Felicia Bajo/AOL, GMA Integrated News