Senator Panfilo M.Lacson said on Tuesday that retired Brig. Gen. Ricardo Morales, President and Chief Executive Officer of the Philippine Health Insurance Corporation (PhilHealth) and another ranking PhilHealth official are liable for malversation of public funds whose penalty is ‘’reclusion perpetua’’ (life imprisonment.)
(SENATE OF THE PHILIPPINES / MANILA BULLETIN FILE PHOTO)
The other official is Fund Management Sector Senior Vice President Renato Limsiaco Jr.
‘’In all cases, persons guilty of malversation shall also suffer the penalty of perpetual special disqualification and a fine equal to the amount of the funds malversed or equal to the total value of the property embezzled,’’ Lacson said, citing a provision of the Revised Penal Code (RPC) in his opening statement at the third in-person and virtual public hearing by the Senate Committee of the Whole.
The hearing focused on alleged widespread corruption at PhilHealth that has supposedly lost about P150 billion to corruption.
Lacson was referring to the recent failure of PhilHealth to collect two percent in expanded withholding tax from the P15 billion in the controversial Interim Reimbursement Mechanism (IRM) it gave to health care institutions.
Aside from its failure to withhold the taxes, PhilHealth also used its Corporate Operational Budget to remit to the Bureau of Internal Revenue (BIR).
To Lacson, both mistakes violate existing laws.
‘’Kaya huwag ninyo asahan na papatawarin kayo ng sambayanang Pilipino,’’ he added. (Don’t expect that the Filipino people will forgive you).
Lacson said that Philhealth officials involved in the mess "would most likely swim in many cases" to be prepared by Department of Justice (DOJ) Secretary Menardo Gueverra once Sotto has submitted the records of the public hearing of the Senate Committee of the Whole.
In his opening statement, Lacson read a provision and its subsequent amendment under RA 10951. Article 217, Chapter 4, Book 2 of Act 3815 or the RPC provides:
“MALVERSATION OF PUBLIC FUNDS OR PROPERTY. Art. 217. Malversation of public funds or property; Presumption of malversation — Any public officer who, by reason of the duties of his office, is accountable for public funds or property, shall appropriate the same or shall take or misappropriate or shall consent, through abandonment or negligence, shall permit any other person to take such public funds, or property, wholly or partially, or shall otherwise be guilty of the misappropriation or malversation of such funds or property, shall suffer” – I will now quote from the latest amendment of Art 217 of the Penal Code, which is Sec 40, RA 10951 – It says, “If the amount exceeds P8.8 million, the penalty shall be reclusion perpetua.”
Parts of his opening statement follow:
‘’Mr. Limsiaco, and probably PCEO Morales, I am sorry to say, being accountable officers of PhilHealth – bukod pa sa usapin ng pag-misappropriate ng kaban ng PhilHealth para bayaran ang withholding tax na maliwanag pa sa sikat ng araw ay kasong Malversation of Public Funds or Property under Article 217, Chapter 4, Book II of Act 3815, at iba pang kaso ng violations of the National Intenal Revenue Code and Anti-Graft and Corrupt Practices Act or RA 3019; kapag isinama pati ang mga binayaran ninyo na private dialysis centers, maternity care providers at infirmaries na walang kinalaman sa COVID-19 na siyang sakop ng IRM, malamang maliligo kayo ng kaso kapag ibinahagi na ni Senate President Tito Sotto kay Department of Justice (DOJ) Secretary Menardo Guevarra ang lahat na records ng proceedings ng pagdinig na sinasagawa namin ngayon, pati na po ng Task Force na pinangungunahan ni Secretary Guevarra ay inatasan ng Pangulo na mag-imbestiga ng mga katiwalian sa PhilHealth upang sampahan ng kaukulang kaso ang mga sangkot sa karumal-dumal na gawaing pinaguusapan natin ngayon at sampu ng ating mga kababayan ngayong panahon pa man din ng pandemya na hindi man lang ninyo pinatawad.
‘’Well, I am going to show you a memorandum signed by PCEO Morales dated August 7, four days before Mr Limsiaco patently lied before this committee, when he testified under oath he was not aware of PhilHealth’s obligation as a withholding tax agent. Base sa nasabing Memorandum ni PCEO Morales, nakapag-remita na ng 2 percent expanded withholding tax (EWT) ang PhilHealth sa BIR Pasig RDO 043 noong ika-3 ng Agosto. At galing daw ang buwis na ito sa na-release na pondo ng IRM sa HCIs hanggang July 31, 2020 na ang kabuuang halaga ay P156,738,887.
‘’Lumilitaw na bukod sa kulang-kulang na P15 billion na IRM releases, pinag-abono pa nila ang PhilHealth mula sa benefit claims ng kanilang Corporate Operating Budget (COB) na kanilang ipinangbayad ng buwis na dapat ay pinapataw na bago pa lamang i-release ang pondo ng IRM sa mga health care institutions. PAMI ang tawag dito.’’’ (Aside from the IRM releases, the use by PhilHealth from its Corporate Operating Budget (COB) in paying the withholding tax which should have been deducted from the IRM releases.)