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Manila Bulletin devider Philippines devider National devider Recto, Ledesma charged with plunder, graft on transfer of P60-B PhilHealth funds to National Treasury

Recto, Ledesma charged with plunder, graft on transfer of P60-B PhilHealth funds to National Treasury

Published Jan 15, 2026 12:41 pm
Executive Secretary Ralph G. Recto, as former finance secretary, and then president and chief executive officer (CEO) Emmanuel R. Ledesma Jr. of the Philippine Health Insurance Corporation (PhilHealth) were charged with plunder and graft before the Office of the Ombudsman.
Recto and Ledesma were allegedly criminally liable for the transfer of the P60 billion excess or reserve funds of PhilHealth to the National Treasury.
Aside from plunder under Republic Act No. 7080, they were charged with violations of RA 3019, the Anti-Graft and Corrupt Practices Act; Article 220 of the Revised Penal Code on technical malversation; and grave misconduct under RA 6713, the Code of Conduct and Ethical Standards for Public Officials and Employees.
The complaints were filed on Thursday, Jan. 15, by Rodel A. Taton, Dr. Cynthia C. Ng, Dr. Milagros Tespoer Layson, Dr. Edna Atacador Medez, Dr. Noel G. Binayas, Dr. Cynthia O. Amatril, Dr. Maria Evelyn D. Divinagracia, Dr. Louie Tirador, Justin Francis C. Binoat, and Dr. Marcelo Jaen.
The Supreme Court (SC) had voided, for grave abuse of discretion, a special provision in the 2024 General Appropriations Act (GAA) that authorized the return of excess or reserve funds of government-owned or controlled corporations (GOCCs) to the National Treasury to fund unprogrammed appropriations.
Nullified by the SC was Special Provision 1(d), Chapter XLIII of the 2024 GAA, and Department of Finance’s (DOF) Circular No. 003-2024 that directed the transfer of P89.9 billion funds of PhilHealth to the National Treasury.
With the ruling, the SC ordered the return to PhilHealth of the P60 billion already transferred to the National Treasury and permanently stopped the transfer of the remaining P29.9 billion.
The complainants told the Ombudsman that RA 11223, the Universal Health Care Act (UHCA), requires that PhilHealth funds, especially the reserve funds, be protected and maintained in interest-earning or income-generating investments. The law expressly forbids the transfer of the reserve funds to the National Treasury, they said.
However, they said the law was circumvented by the 2024 GAA which became the basis for the transfer of P60 billion to the National Treasury.
The complainants alleged that Recto and Ledesma caused substantial damage and serious prejudice to PhilHealth and its beneficiaries when they transferred the P60 billion to the National Treasury, which even the SC deemed as "unconstitutional."
"Recto caused the inclusion of PhilHealth Reserve Funds in the GOCC excess funds through Special Provision Section 1 of the 2024 GAA," and “Ledesma Jr... should also be held liable for his acquiescence to the directive given by respondent Recto."
Neither Recto nor Ledesma could be contacted for comments as of posting time.
During an interview after the filing, the complainants said that Recto and Ledesma were at fault because "these funds were utilized not for the purpose for which they were appropriated."
"It violates the existing laws. It is tantamount to amendment of existing laws," they stressed.
"This one is for the universal healthcare and this one is for every Filipino who is unable or incapable or cannot afford na pumunta sa (to go to) hospital," they pointed out.
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