MANILA — A group led by retired Supreme Court (SC) Senior Associate Justice Antonio Carpio filed a petition for certiorari and prohibition challenging the constitutionality of transferring P89.9-billion in Philippine Health Insurance Corp. (PhilHealth) funds to the Bureau of the Treasury.

The petition was filed before the SC on Wednesday, the same day that the third tranche of funds amounting to P30 billion would be transferred to the national treasury.

Labor group asks SC to stop transfer of PhilHealth funds to treasury

Carpio, lead convenor of 1Sambayan, said the transfer of the excess PhilHealth funds violates the 1987 Constitution, which bars laws authorizing the transfer of appropriations.

“Ngayon, 'yung 2024 General Appropriations Act (GAA), the Secretary of Finance, authorizes to transfer excess funds of PhilHealth to the National Treasury to fund the unprogrammed appropriations. That is a direct violation because the general rule is no law shall be passed authorizing the transfer of appropriations,” he said.

He said the President can “transfer savings from one item budget to another to augment that other item but only within the Executive Department.”

Carpio said, however, that that is only allowed “within the Executive Department" and only by "the President, not the Secretary of Finance.”

He added that PhilHealth should not have surplus funds at all. 

 “Eh for PhilHealth wala namang surplus, kasi hindi pa tapos yung Universal Health Services. Ang dami pang nangangailangan ng gamot. Kulang pa yung mga hospitals. So di pa na-accomplish yung purpose ng PhilHealth so walang savings.”

Groups turn to SC to block diversion of P89.9B PhilHealth funds

Carpio said special funds raised through taxation for a specific purpose — in this case, excise taxes on "sin" products — cannot be used for any other purpose, as indicated in the Constitution.

“That is a special fund raised for a specific purpose. Under the Constitution, you cannot use those special funds for any other purpose,” he said.

He stressed that abandoning that special purpose will have to be done by law or if the purpose of the special funds has alreayd been met.

"'Di pa naman na-accomplish yung purpose ng PhilHealth,” he said.

This is why the petitioners are requesting a temporary restraining order (TRO) from the Supreme Court, saying the transfer would cause irreparable damage.

“Pag na-gasta na 'yan there is nobody in the government that can reimburse that. Kasi the rule is, if it’s illegal disbursement, nag-disburse illegally, we have to return the money. But how can anyone wdo that with P89.9 billion? ” he said.

 Former Finance Undersecretary Cielo Magno echoed Carpio’s sentiment, saying it is important that PhilHealth has the means to fund the Universal Health Insurance Program.

“Ang value po siguro kung magkakaroon ng decision sa January ay 'yung pag deklara ng unconstitutional itong ginagawa ng Department of Finance at ng Kongreso natin sa pagkuha ng pondo ng PhilHealth. 'Yun po ang magiging value ng decision na' yun – na sanay ay mapigilan at 'di na maulit ang insidenteng ito,” Magno said.

'DANGEROUS BUDGET PRACTICES'

Meanwhile, former Commision on Audit Commisioner Heidi Mendoza emphasized the need to stop dangerous budget practices within the government.

 “Recently nakita po natin tumataas yung unprogrammed funds di po ba? Now, 'di ho simpleng usapin ang pagtaas ng unprogrammed funds dahil ang unprogrammed funds po, lessen po ang control as compared to the regular funds. There is a chance 'di sya magamit dun sa purpose for which it is appropriated,” she said.

Mendoza filed her candidacy for senator this month, saying her priority, if elected would be helping people understand the budget process and help them keep an eye on government spending.