Akbayan Senator Risa Hontiveros has backed the assertion of Health Secretary Francisco Duque III that the PhilHealth board did not know about the alleged diversion of the P10.6-billion PhilHealth funds originally earmarked for the payment of senior citizens’ insurance premiums.
At that time, Hontiveros said she was a member of the board of directors of PhilHealth.
She said this matter was never discussed and approved by the PhilHealth board of directors.
Senator JV Ejercito, who conducted a congressional inquiry on PhilHealth’s performance and more than P1-billion losses, said it was only then Health Secretary Janette Garin and PhilHealth president Alex Padilla who knew about the transfer of funds.
PhilHealth executive vice president Ruben John Basa said on Aug. 5, 2015, Garin and Padilla jointly wrote a letter to then budget chief Florencio Abad requesting the transfer of P10.6 billion from the 2015 budget for the DoH Health Facilities Enhancement Program.
The amount, supposed to fund the additional benefits under the Expanded Senior Citizens Act, was parked in the Miscellaneous Personnel and Benefits Fund.
The Health department’s enhancement program included the construction of Tamang Serbisyo sa Kalusugan ng Pamilya (TSeKAP) health stations in public elementary schools, and equipment for barangay health stations for TSeKAP accreditation.
The transfer was approved by Abad and former executive secretary Paquito Ochoa.
Health Secretary Francisco Duque III said the letter is “evidence by itself” that the P10.6-billion funds for the expanded Senior Citizens Act was diverted from its original use.
Duque said he could not understand Garin as saying this was used to cover up the financial irregularities at PhilHealth.
“But there’s a letter. We just abide by what the letter says. The thing speaks for itself,” he said.
Garin and Padilla’s request came around the same time the former Health chief asked for P3.5 billion for the anti-dengue vaccination program.
Garin, Abad and former President Benigno Aquino III are facing criminal charges over the Dengvaxia mess that has imperiled the safety of over 800,000 Filipino children.
The PhilHealth Independent Director for Monetary Board Dr. Anthony Leachon stressed this was just one of the causes of the agency’s dwindling funds.
He said the P10.6 billion had been included in PhilHealth’s financial statement as payments receivable from the national government.
“We indicated it in our accounts receivables,” said Leachon, adding they were hoping to get it.
Saying that net loss is multi-factorial, he said this was one reason that worsened the financial statement because PhilHealth’s reserve funds were reduced.
Garin claimed politics had triggered the accusations being hurled against her, saying Leachon merely wanted to become PhilHealth president.
But Leachon, an internist-cardiologist at Manila Doctors Hospital, refuted Garin’s allegation, saying he’s happy where he was now.
“I have been fortunate to join landmark advocacies and to lead respected organizations and won a few recognitions for my efforts,” he said.
Padilla said the letter was not proof of a diversion and that the DBM still had the final say on the transfer of funds.
However, the DBM certified on May 9, 2018 that funds for the construction of RHUs and barangay health stations were sourced from the 2015 Miscellaneous Personnel Benefits Fund savings.