Opposition Sen. Leila de Lima is seeking an investigation on the transaction between the Philippine Red Cross (PRC) and the Philippine Health Insurance Corp. (PhilHealth).
De Lima said prima facie allegations of impropriety against Sen. Richard J. Gordon are serious enough to warrant a full-blown investigation on the precise nature of the transaction.
For the sake of the Senate and the PRC, Gordon should answer the allegations of impropriety against him, in his capacity as PRC chairman vis-à-vis as senator and as chairman of the Senate Blue Ribbon Committee, De Lima said.
De Lima, former Justice Secretary during the Aquino presidency, said the badges of irregularities are undeniable.
She said these are:
1. Gordon, in his capacity as Blue Ribbon Committee chairman, is still investigating PhilHealth when the Memorandum of Agreement (MoA) between PRC and PhilHealth was negotiated and signed. Gordon himself signed the MoA. “That is a clear conflict of interest,’’ De Lima said.
2. PhilHealth, as a government-owned and -controlled corporation, could not agree to advance payments as it is contrary to Philippine laws. “Yet, it was included in the MoA. In fact, P100 million was paid upfront upon execution of the MoA,’’ De Lima said.
De Lima maintained that the Bayanihan to Heal as One Act did not repeal or suspend the provisions of the State Auditing Code which prohibits payment of advances without prior approval of the President.
She stressed that it could not be argued that the basis for the advance payment agreement is the Interim Reimbursement Mechanism (IRM). Under PhilHealth Circular 2020-0007, the IRM is limited to Health Care Institutions (HCIs) directly hit by fortuitous event with clear and apparent intent to continuously operate and or rebuild.
‘’The PRC does not fall under this qualification,’’ she said.
Former PhilHealth executive lawyer Rodolfo del Rosario Jr. also admitted that the MoA with the PRC is not covered by the IRM, De Lima said.
"The apparent intent is for the MoA to be an agreement different from the IRM agreements under PhilHealth Circular 2020-0007. The MoA itself provides for a “prospective payment mechanism.” What then is the statutory basis for agreeing to advance payments?’’ De Lima asked.
3. Gordon’s report as previewed, it suspiciously left out the national leadership of PhilHealth, led by its former Chairman and Chief Executive Officer Ricardo Morales.
‘’These PhilHealth officials are the very same officials with whom the PRC negotiated the MoA. Mr. Morales and his fellow officers are now facing administrative and criminal charges recommended by Task Force PhilHealth and approved by no less than President Duterte,’’ she emphasized.
‘’We should investigate whether the questionable provisions in this MoA are repeated in other agreements entered into by PhilHealth. Even as many hospitals feel the pinch of having to wait for PhilHealth reimbursements for their COVID-19-related expenses, we see some institutions favored by not just prompt but advanced payments agreed to in spite of clear statutory prohibitions,’’ she said.
De Lima, a vocal critic of President Duterte, said that ‘’this administration’s actions on these allegations will reflect its commitment to the rule of law.’’