Malversation, Plunder Raps Filed vs Ralph Recto & PhilHealth’s Ledesma Over Fund Transfer

Legal Heat Rises as Recto, PhilHealth Chief Face Charges Over P60 Billion Transfer

RALPH RECTO – Executive Secretary Ralph Recto is now facing serious accusations after complaints were filed over the controversial transfer of PhilHealth’s excess funds.

A formal complaint has been filed against Executive Secretary Ralph Recto and former Philippine Health Insurance Corporation (PhilHealth) president and chief executive officer Emmanuel Ledesma over the controversial transfer of PhilHealth’s excess funds to the national treasury.

The Save the Philippines Coalition lodged complaints of malversation and violations of the Anti-Graft and Corrupt Practices Act before the Office of the Ombudsman on Monday, December 22. In addition to these charges, the group also filed complaints under the Anti-Plunder Law and for grave misconduct, citing what it described as serious irregularities in the handling of PhilHealth’s surplus funds.

Ralph Recto
Photo Source: Inquirer

Apart from seeking accountability, the coalition also asked for the preventive suspension of Recto and Ledesma. In its complaint, the group stressed the urgency of such action, arguing that the respondents’ continued stay in office could compromise the case.

“With all due respect, Complainants respectfully [submit,] it is very clear that the evidence of guilt is strong, the charges would warrant [respondents’] removal from office,” the complaint read.

The filing further emphasized concerns about possible interference with evidence should the respondents remain in their posts. “The continuous stay in office of Respondent HON RALPH G. RECTO, Executive Secretary Respondent EMMANUEL R. LEDESMA, JR, if still in government service, will allow the suppression of evidence against them by causing the loss or destruction of the same, which will make apt, the issuance of an “Order” preventively suspending said Respondents from their respective offices,” it added.

The controversy traces back to the transfer of PhilHealth’s excess funds to the national treasury. On December 5, the Supreme Court ordered the return of P60 billion in PhilHealth excess funds from the national treasury back to the state health insurer. Before this ruling, PhilHealth had been directed to remit a total of P89.9 billion in surplus funds to the national coffers.

Before the Supreme Court issued a temporary restraining order halting the transfer of the remaining P29.9 billion, the agency had already remitted P60 billion.

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Reacting to the complaint, Recto said that he respects “every citizen’s right to seek redress before the courts” and assured that he will “fully cooperate with the Office of the Ombudsman during the conduct of preliminary investigation.”

“With the able representation by the Solicitor General, I welcome the opportunity to clarify the issues, prove my innocence, and debunk the allegations put forth,” Recto’s statement read.

He further maintained his position, saying, “But let me 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.”

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