Group appeals dismissal of raps vs. Recto, others over PhilHealth funds

MANILA, Philippines —A coalition of doctors and lawyers on Thursday urged the Office of the Ombudsman to review its resolution that cleared top government officials over the controversial transfer of P60 billion from the state-run Philippine Health Insurance Corp. (PhilHealth) reserve funds to the national treasury.

The motion for reconsideration challenges the Ombudsman’s June 2, 2026, consolidated resolution, which dismissed plunder, graft, technical malversation, and grave misconduct complaints against current acting Executive Secretary (and former Finance Secretary) Ralph G. Recto, alongside former PhilHealth President and CEO Emmanuel R. Ledesma Jr.

The Ombudsman said the anti-graft body had previously ruled that there was insufficient evidence to hold the officials criminally or administratively liable.

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READ: Recto, ex-PhilHealth chief cleared of plunder, graft raps

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In their fresh filing, the group led by Atty. Rodel A. Taton, Dr. Cynthia C. Ng, and several other medical and legal professionals said the Ombudsman investigators committed serious errors of law and fact by failing to scrutinize who ultimately benefited from the diversion of the multibillion-peso fund.

The group said that Recto, before being appointed finance secretary in 2024, was the representative of Batangas’ Sixth District and was a member of the bicameral conference committee for the 2024 General Appropriations Act (GAA).

The group alleges that a critical insertion, referring to Special Provision 1(d), was introduced during these bicameral proceedings to authorize the sweeping transfer of government-owned and controlled corporations’ (GOCC) excess funds to the national coffers.

They pointed out that the said provision under the GAA later served as the legal foundation for DOF Department Circular No. 003-2024, which aimed to siphon a total of P89 billion from PhilHealth.

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“The sequence of events starting from the insertion of the Special Provision 1(d) in the 2024 GAA up until the transfer of the PHP 60 Billion from PhilHealth excess reserve funds to the National Treasury cannot belie the involvement of Respondents Recto and Respondent Ledesma who acquiesced to the former and should not be used as a justification to absolve him from any liability including Respondent Ledesma Jr.,” the complainants stated in their motion.

They noted that the financial benefit for Recto’s home district was immediate, such as an increase in unprogrammed allocations from P50 million in 2023 to P3.6 billion in 2024.

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The motion noted that 33 infrastructure project contracts in Lipa City were subsequently awarded in 2024.

“The Ombudsman failed to properly consider the clear chain of events showing who ultimately benefited from the transfer of PhilHealth funds,” the complainants asserted, stating that shifting these funds created breeding grounds for graft and corruption while undermining public welfare.

Meanwhile, in interpreting technical malversation, the group said the Ombudsman erred by requiring proof of criminal intent, corrupt motives, or personal enrichment to sustain the charges.

Citing established jurisprudence — Arnold James M. Ysidoro v. People of the Philippines — the motion emphasized that technical malversation is a “mala prohibita” offense. In such cases, the crime is defined entirely by the act of diverting public funds earmarked by law for a distinct public purpose to a completely different use. Consequently, claims of “good faith” or an “honest belief” by Recto and Ledesma are legally immaterial.

The original complaint was filed after the Supreme Court declared the movement of the P89 billion PhilHealth reserve funds illegal and ordered the government to halt the transfers and return the money to the state insurer.

Critics, healthcare advocates, and former government officials consistently maintained that the billions in excess reserves should have been used to expand medical benefits and lower healthcare costs for PhilHealth members, rather than to finance unprogrammed government appropriations.

Meanwhile, Recto said in a previous statement that the case was merely a harassment suit.

He maintained that the movement of the funds was mandated by law under the General Appropriations Act of 2024.

READ: PhilHealth fund transfer legal, plunder rap a harassment case – Recto

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“The Congress ordered the Department of Finance secretary. The Supreme Court justices themselves said that I have no criminal liability because I simply followed the law and implemented it in good faith,” he said. /atm