Joselito Malig

Article (news)

Kaxandra Salonga

ABS-CBN News

MANILA (UPDATED) —  The Office of the Ombudsman has junked the complaints against Executive Secretary Ralph Recto over the transfer of P60 billion in PhilHealth reserve funds to state coffers during his tenure as finance secretary.In a resolution dated June 2, the graft-busting body cited a lack of prima facie evidence to warrant the filing of charges against Recto and former Philippine Health Insurance Corporation (PhilHealth) President and CEO Emmanuel Rufino Ledesma Jr.The complaints accused the two officials of plunder, technical malversation, graft, and grave misconduct. However, the Ombudsman said it found no reasonable certainty of conviction that their acts amount to the recommended criminal and administrative charges.It added that Recto could not be held liable for personal enrichment since the funds were returned following a high court order.&quot;On the contrary, DOF Secretary Recto was commended…for his commitment to return the P60 billion to PhilHealth. Thus, the return of the P60 billion to PhilHealth militates against the allegation that respondents took advantage of their positions for &#x27;personal enrichment,&#x27;&quot; the resolution read.The controversy arose after Recto signed Department of Finance (DOF) Circular No. 003-2024, which directed the remittance of P89.9 billion in PhilHealth excess reserve funds to back the unprogrammed appropriations under the 2024 General Appropriations Act (GAA). PhilHealth remitted P60 billion in three tranches before the Supreme Court issued a temporary restraining order and declared the transfer void on December 3, 2025.However, the Ombudsman said it found no sufficient basis to establish bad faith, corrupt motive, or manifest partiality on Recto’s part. In his counter-affidavit, Recto said he merely performed his &quot;legal and ministerial duty&quot; to operationalize the guidelines under the 2024 GAA, which he said was presumed constitutional at the time.“As to the claim that the transfer of the PhilHealth Reserve Funds to the National Treasury caused undue injury to the Filipino people by risking the health care program of the Philippines, RECTO contends that complainants did not elaborate how the supposed risk arose as the alleged &quot;risk&quot; to the health care program of the Philippines is not the undue injury that would give rise to violation of Section 3(2) of RA 3019,” it read.He also pointed out that his actions at the time were backed by prior legal consultations and favorable opinions from the Office of the Government Corporate Counsel (OGCC), the Governance Commission for GOCCs (GCG), and the Commission on Audit (COA).The executive secretary also asserted that &quot;mere movement of public funds does not, by itself, constitutes plunder” and said there is no proof that the funds were transferred to him. <div> </div><div>COMPLAINANTS INSIST ‘EVIDENT BAD FAITH’</div>Atty. Rodel Taton, who was one of the complainants, said he has yet to receive a copy of the resolution dismissing the cases against Recto and Ledesma.He insisted that the respondents acted with “evident bad faith” in facilitating the transfer of funds, which he said undermined the trust of the Filipinos. “It is a sad day for accountability and responsibility in the utilization of public funds, particularly the PhilHealth funds,” Taton said in a statement.“The number of people from the public and private sectors coming forward to seek accountability from Recto and Ledesma through duly constituted authorities should be considered here, as this indicates that we have seen, and we do know, that something is wrong, and therefore we are taking the initiative to ask our institutions to look further into these messes,” he added.Meanwhile, health advocate Dr. Tony Leachon, who also filed separate plunder and technical malversation complaints against Recto, clarified the Ombudsman has yet to act on his filing last May 25.“The Ombudsman’s June 2 decision only covers two earlier cases—not the May 25 complaint filed by Dr. Tony Leachon, which includes accountability for both PhilHealth and PDIC funds. That case remains alive. And with it, the hope that the Ombudsman will hear it with wisdom, integrity, and fidelity to the people’s right to healthcare,” Leachon said.

The Office of the Ombudsman has junked the complaints against Executive Secretary Ralph Recto over the transfer of P60 billion in PhilHealth reserve funds to state coffers during his tenure as finance secretary.

The Office of the Ombudsman has junked the complaints against Executive Secretary Ralph Recto over the transfer of P60 billion in PhilHealth reserve funds to state coffers during his tenure as finance secretary.

Ombudsman dismisses raps vs. Recto over PhilHealth fund transfer

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Ombudsman dismisses raps vs. Recto over PhilHealth fund transfer

Kaxandra Salonga,

ABS-CBN News

Published June 09, 2026 06:57 PM PHT

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Updated June 10, 2026 11:43 AM PHT

Read More:

Ralph Recto

PhilHealth

Ombudsman

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