The Supreme Court, in a decision dated January 28, 2021, affirmed the notices of disallowance by the Commission on Audit (COA) on some P204.7 million granted by the Philippine Health Insurance Corporation (Philhealth) to its officials and its employees in various kinds of benefits in 2007 and 2008 – 13 to 14 years ago.
The court, in the unanimous decision written by Justice Jean Paul B. Inting, said the Philhealth officials who approved the grant of money benefits are liable to return P16.2 million. It also ordered the recipients of the other amounts to refund them “since it was erroneously given to and received by them.”
The amounts disallowed by the COA included birthday gifts totalling P5.97 million; special benefit allowance, P8.7 million; nominal gift, P29.5 million; educational assistance, P49.28 million; project completion benefit, P4.98 million; payment of liability insurance premium for the board of directors and officers, P638,000; corporate transition and achievement premium, P81.05 million; and medical mission critical allowance, P7.91 million.
The disallowed funds were found to have been disbursed without approval from the Office of the President as required by Memorandum Order No. 20 of June, 2001, and Administrative Order No.103 of August 31, 2004. The payment of liability insurance premiums for the Philhealth directors and officers was also held to be in violation of Republic Act 9184, the Government Procurement Reform Act, and Government Procurement Policy Board Resolution No. 21-05.
on July 12, 2012, the COA Corporate Government Sector denied the appeals filed by Philhealth; and on December 27, 2016, the COA main office dismissed the petition for review filed by Philhealth..
The Supreme Court agreed with the Commission on Audit and said Philhealth should have observed the policies and guidelines issued by the Office of the President on the granting of additional personnel benefits.
In its decision, the Supreme Court ordered the officials who approved the monetary benefits to return P16.2 million. It also ordered the employees to return the amounts they received.
This is the law and it must be upheld. But the administration might want to assist the thousands of small employees who received benefits over the last 13 to 14 years from educational, medical, birthday and other gifts approved by Philhealth officials. The small ordinary employees were grateful for this assistance, especially the medical and educational aid, which seemed legitimate at the time.
These decisions of the Philhealth board have now been declared illegal. The law is indeed clear – the money must be returned. But so many employees may need help, which the Duterte administration, which has become known for its concern for such small people in need, can give, perhaps with a special loan program .