1Sambayan, groups seek to block PhilHealth transfer, citing unconstitutionality

Their petition is based on two grounds — that the Constitution does not allow laws authorizing the transfer of appropriations and funds sourced through the public taxes for specific purposes cannot be used elsewhere

MANILA, Philippines — Another petition questioning the legality of the P89.9-billion fund transfer of PhilHealth back to the national treasury has reached the Supreme Court.

On Wednesday, October 16 — the day of the scheduled third tranche fund transfer — a group led by retired Supreme Court senior associate Justice Antonio Carpio filed a petition for certiorari and prohibition with the High Court. Their petition is based on two grounds — that the Constitution does not allow laws authorizing the transfer of appropriations and funds sourced through the public taxes for specific purposes cannot be used elsewhere.

“Ngayon, ang hinihingi namin ganito — dapat may temporary restraining order sa paglipat kasi sa pag nilipat mo ‘yan… pag nagastos na ‘yan, hindi na masasauli ‘yan. Kahit na under the law, kung sino ‘yung opisyal na naglipat ng pera, dapat isauli niya. Personally liable siya,” Carpio said in an interview with TeleRadyo Serbisyo.

(Now, what we’re asking for — there should be a temporary restraining order in the transfer of funds because if you remit that… once that is spent, the fund cannot be returned. Even though under the law, the official that authorized the transfer of funds, they would have to return it themselves. They would be personally liable.)

Carpio said Finance Secretary Ralph Recto would personally have to pay P89.9 billion to cover for the transfer if the High Court deems it unconstitutional.

“Wala siyang ganiyang kalaking assets (He does not have that big of an amount in assets.),” he said.

Carpio, along with 1Sambayan members former ombudsman Conchita Carpio Morales, former Commission on Audit commissioner Heidi Mendoza, and Lawyer Howie Calleja; Fr. Robert Reyes, Fr. Flavie Villanueva, Fr. Bong Sarabia, and Fr. Christian Buenafe; Kidney Foundation of the Philippines, Senior for Seniors, and law students from San Beda College Alabang filed the petition.

This is the second group that filed for a petition seeking to block the almost P90 billion PhilHealth fund transfer. In early August, a group led by Senator Aquilino “Koko” Pimentel also filed a petition for certiorari and prohibition with the SC, also seeking a temporary restraining order to prevent the transfer.

Who can authorize the fund transfer?

In July, Recto told the Senate panel that the Department of Finance’s (DOF) directive to PhilHealth to remit some of its excess funds is not illegal. He pointed to the RA 11975 or the General Appropriations Act of 2024, which introduced a new “special provision” that allows the government to collect excess funds from government-owned or -controlled corporations (GOCCs).

“Tumatalima lang kami sa batas na pinagtibay ninyo at hindi automatic naming iniimplement ito dahil binusisi muna namin kung may merito ba ang kautusan,” Recto said in July 30.

(We are just following the law you adopted and we are not automatically implementing this because we had to study first if the law has any merit.)

Carpio highlights, however, that the country’s Constitution — the supreme law of the land — provides limited exemptions for fund transfers:

• “No law shall be passed authorizing any transfer of appropriations; however, the President, the President of the Senate, the Speaker of the House of Representatives, the Chief Justice of the Supreme Court, and the heads of Constitutional Commissions may, by law, be authorized to augment any item in the general appropriations law for their respective offices from savings in other items of their respective appropriations.”

“Naka-specify kung sinong pwedeng lumipat ng savings (It specifies who can authorize the transfer of savings),” Carpio said. “Hindi kasama ‘yung secretary of finance (The finance secretary is not included).”

Untouchable funds

Carpio also puts emphasis on how the Constitution also provides that “funds raised through taxation for a special purpose cannot be used for any other purpose, except for that purpose specified by law.”

PhilHealth gets funds through member contributions and covers indigent Filipinos through subsidies from the government, some of which are sourced through excise tax. Recto had previously confirmed that the P90-billion will come from unused government subsidies.

“Kahit na ‘yung presidente, hindi niya pwedeng ilipat (Even the president cannot authorize the transfer),” Carpio said.

The former Supreme Court senior associate said these funds could only be repurposed if the agency had already accomplished its projects or it had already decided to abandon it.

The P30 billion transfer this October is the second to the last installment of the controversial fund transfer. PhilHealth remitted P20 billion last May and another P10 billion back to the Treasury last August. The final tranche amounting to P29.9 billion is set for November.

Meanwhile, the Supreme Court alredy set the oral arguments for petitions concerning the PhilHealth case months after the fund transfers — on January 14, 2025. – Rappler.com