The Office of the Ombudsman has dismissed plunder, graft and administrative complaints against Executive Secretary and former Finance Secretary Ralph G. Recto and former Philippine Health Insurance Corporation (PhilHealth) President and CEO Emmanuel Rufino Ledesma Jr. over the transfer of ₱60 billion in PhilHealth reserve funds to the National Treasury.

In a 40-page Consolidated Resolution dated June 2, the Ombudsman found no prima facie evidence to hold Recto and Ledesma liable for plunder, graft, technical malversation and grave misconduct in connection with the fund transfer.

The complaints stemmed from the transfer of PhilHealth reserve funds to the National Treasury under provisions of the 2024 General Appropriations Act (GAA), which complainants alleged violated anti-graft and anti-corruption laws.

The Ombudsman ruled that the acts complained of did not constitute the offenses charged and said the transfer was authorized under the 2024 GAA.

“All things considered, respondents' criminal liability was not proven with reasonable certainty in order for them to be indicted. Complainants failed to prove the existence of a corrupt intent, dishonest design and unethical interest which goes to the very nature of the offenses charged,” the resolution read.

In dismissing the plunder complaint, the Ombudsman said the respondents' actions did not satisfy the elements of the offense, particularly the requirement that public officials amass, accumulate or acquire ill-gotten wealth worth at least ₱50 million.

“The gravamen of the offense of plunder is the amassing, accumulation or acquisition of ill-gotten wealth amounting to at least ₱50 million. It is this element of amassing, accumulation, or acquisition of ill-gotten wealth that converts the criminal acts of misappropriation, conversion, misuse, or malversation of public funds or raids on the public treasury into plunder. Without this core element, there can be no plunder,” the resolution stated.

The Ombudsman also noted that Recto later ordered the return of the ₱60 billion to PhilHealth following a 2025 Supreme Court ruling that declared unconstitutional the budget provision authorizing the transfer.

“The return of the P60 billion to PhilHealth militates against the allegation that respondents took advantage of their positions for ‘personal enrichment,’” it said.

The resolution also dismissed the administrative complaint, finding no evidence of corruption, intent to violate the law or a flagrant breach of duty on the part of the respondents.

“On the administrative aspect of the complaint, the elements of corruption, clear intent to violate the law or flagrant and palpable breach of duty are not manifest in the present case,” the Ombudsman said.

“In the absence of contrary evidence, what will prevail is the presumption that respondents regularly performed their duties,” it added.