Jauhn Etienne Villaruel

Article (news)

Kaxandra Salonga

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px;display:block" width="960"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1779680548122176637197303920210309-recto-ralph-senate-PRIB-0.jpg" style="width:960px" class="fr-fic fr-dib" width="960"/><span class="fr-inner" style="text-align:left">Executive Secretary Ralph Recto, March 9, 2021. <em>Albert Calvelo, Senate PRIB/File</em><br/></span></span></span></div><p>MANILA — Health advocate Dr. Anthony “Tony” Leachon on Monday filed plunder, graft, and technical malversation complaints before the Office of the Ombudsman against Executive Secretary Ralph Recto and other officials over the alleged diversion of P60 billion in PhilHealth reserve funds and P107 billion from the Philippine Deposit Insurance Corporation (PDIC) to the National Treasury.</p><p>Aside from Recto, the complaint named Acting Finance Secretary Frederick Go, former Acting Budget Secretary Rolando Toledo, PhilHealth President Edwin Mercado, former PhilHealth chief Emmanuel Ledesma Jr., Health Secretary Teodoro Herbosa, and PDIC President Roberto Tan as respondents.</p><p>Leachon claimed the alleged diversion occurred in 2025, when Recto was still serving as finance secretary.</p><p>The filing follows a ruling by the Supreme Court which <a href="https://www.abs-cbn.com/news/nation/2025/12/5/supreme-court-orders-government-to-restore-p60-b-philhealth-fund-1435">declared the P60-billion PhilHealth transfer unconstitutional and void.</a></p><div><a href="https://www.abs-cbn.com/news/nation/2026/1/15/recto-ex-philhealth-chief-face-plunder-graft-raps-over-voided-fund-transfer-1226">Recto, ex-PhilHealth chief face new plunder, graft raps over voided fund transfer</a></div><p>“After the December 5 decision of the Supreme Court, they should’ve returned the money from the treasury to PhilHealth. They should not have waited for [the] 2026 budget and taxed that to taxpayers’ money,” Leachon told reporters in an ambush interview.</p><p>He added that the respondents’ actions “rise to the level of gross inexcusable negligence, if not evident bad faith,” considering that the legal infirmities of the transfer were already flagged by health policy experts and former PhilHealth officials prior to execution.</p><p>“Ignoring clear statutory text, Supreme Court doctrines on earmarked funds, and expert warnings constitutes a willful indifference to law and duty,&quot; the complaint read.</p><p>Leachon said the return of the funds to PhilHealth should be treated as urgent because contributors rely on the agency for health services.</p><p>He said the agency’s P356.6 billion deficit from 2023 to 2025 resulted in unpaid hospital claims and reduced funding for cancer and dialysis programs.</p><p>The complaint also claimed the alleged transfer of P107 billion from PDIC &quot;weakened depositor protections&quot; and hurt public confidence in financial institutions.</p><p>In a statement, Recto described Leachon’s complaint as a “nuisance and a harassment case.”</p><p>“This bitter man is auditioning for a post in the next administration, using a platform of lies. His claim that I have financially benefited from said PhilHealth funds is an outright falsehood. This is libelous,” Recto said.</p><p>“His claim that I have enriched myself has no iota of truth, and I will not allow a person who has waged a campaign of hate against me to get away with slander,” he added. </p><p>Recto maintained that the transfer was authorized under the General Appropriations Act of 2024.</p><p>Recto previously said the transfer of P60 billion in excess PhilHealth funds was “legal, moral and economically sound&quot; to maximize government resources without resorting to borrowing or new taxes.</p><p>He added that the P60 billion has since been returned to the PhilHealth coffers.</p><p>When asked to comment on the matter, Palace Press Officer Claire Castro said all individuals have the right to file cases, but the outcome will depend on the courts.</p><p>“Lahat ng tao ay may karapatan na magsampa ng kaso. So ang tanong na lang diyan ay kung ito ay mananalo o kung ito ay madidismiss. So maghintay na lang tayo,” Castro said during a briefing. </p><p>The other respondents have yet to issue statements on the complaint.</p><div><strong>RELATED STORIES: </strong></div><div><a href="https://www.abs-cbn.com/news/business/2026/1/9/philhealth-says-interest-waiver-on-unpaid-contributions-not-automatic-1517">PhilHealth says interest waiver on unpaid contributions ‘not automatic’ </a><br/><a href="https://www.abs-cbn.com/news/nation/2026/3/26/filipinos-may-now-apply-for-national-id-in-over-100-philhealth-offices-1832">Filipinos may now apply for National ID in over 100 PhilHealth offices </a><br/><a href="https://www.abs-cbn.com/news/business/2025/12/16/trying-to-claim-free-philhealth-medicines-and-failing-0929">Trying to claim free PhilHealth medicines, and failing</a></div><div><a href="https://www.abs-cbn.com/news/business/2025/12/16/trying-to-claim-free-philhealth-medicines-and-failing-0929"><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/IMX4KTQB9ic?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/8QES_9o_9KA?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span> </a></div>

<p>Dr. Tony Leachon filed the complaints before the Office of the Ombudsman on Monday.</p>

Dr. Tony Leachon filed the complaints before the Office of the Ombudsman on Monday.

Recto, other officials face plunder raps over alleged diversion of P60-billion PhilHealth funds

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Recto, other officials face plunder raps over alleged diversion of P60-billion PhilHealth funds

Kaxandra Salonga,

ABS-CBN News

Published May 25, 2026 11:47 AM PHT

|

Updated May 25, 2026 02:14 PM PHT

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Ralph Recto

plunder

PhilHealth

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