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Leachon files plunder, technical malversation raps vs Recto, Cabinet officials over PhilHealth, PDIC funds

Published May 25, 2026 01:59 pm
(Photo: Tony Leachon Facebook page)
(Photo: Tony Leachon Facebook page)
Physician and public health advocate Tony Leachon on Monday, May 25, filed plunder and technical malversation charges before the Office of the Ombudsman against Executive Secretary Ralph Recto and several Cabinet officials over the alleged diversion of P60 billion in PhilHealth reserve funds and P107 billion from the Philippine Deposit Insurance Corporation (PDIC).
In a press statement, Leachon alleged that Recto ordered the transfer of P60 billion from PhilHealth reserves to the National Treasury in 2025 despite provisions under the Universal Health Care (UHC) Law and Sin Tax Law that supposedly earmark the funds for healthcare services and indigent patients.
Leachon claimed that the transfer contributed to a reported P356.6-billion PhilHealth deficit from 2023 to 2025, allegedly affecting hospitals, dialysis services, and cancer treatment programs.
“The damage was swift and brutal. PhilHealth’s P356.6 billion deficit from 2023–2025 left hospitals unpaid, cancer and dialysis programs starved, and millions of Filipinos abandoned in their hour of need,” he stated.
Likewise, Leachon questioned the alleged diversion of P107 billion from the PDIC, claiming it weakened safeguards intended to protect bank depositors and eroded public trust in financial institutions.
“These were not isolated missteps but a deliberate pattern of unconstitutional reallocation that endangered both health and financial security,” he added.
According to Leachon, the complaint alleged violations of Republic Act No. 7080 or the Anti-Plunder Law, claiming that the transfers supposedly met the threshold for “ill-gotten wealth.”
(Photo: Tony Leachon Facebook page)
(Photo: Tony Leachon Facebook page)
The complaint also cited Article 220 of the Revised Penal Code or technical malversation, which penalizes the use of public funds for purposes other than those authorized by law.
“Even without proof of personal enrichment, the misuse of earmarked health and insurance funds for unauthorized purposes constitutes technical malversation,” he said.
Leachon said the filing of the complaint was both a legal and moral issue tied to the public’s right to health and accountability in the use of government funds.
“This is not merely a legal matter but a moral one,” he said.
“The P60 billion could have saved lives, kept hospitals afloat, and brought dignity to families in despair. Instead, it was stolen from the sick and the poor,” he went on.
“Filing these charges is a duty to the Filipino people — to restore integrity, deter future abuses, and reclaim the promise of universal health care,” he further said.
The Manila Bulletin has emailed Recto through the email address posted on his official Facebook page to seek his comment on the charges, but he has yet to issue a statement as of posting time. His side will be published once available.

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