1SAMBAYAN Coalition and others asked the Supreme Court (SC) to stop the transfer of P89.8 billion excess funds from the Philippine Health Insurance Corp. (PhilHealth) to the national treasury as the third tranche of transfer pushed through on Wednesday.
The petitioners asked the top court to issue a temporary restraining order (TRO), writ of preliminary injunction, and/or other injunctive remedies under the 1987 Constitution and Rule 65 of the Rules of Court.
A total of P30 billion has previously been remitted to state coffers, while another P30 billion was remitted today. The last tranche of P29.9 billion will be transferred in November.
A Department of Finance Circular 003-2024 allowed the transfer of P89.9 billion idle PhilHealth funds to the national treasury for other government spending, which former SC Senior Associate Justice Antonio T. Carpio runs against the Constitution.
“The petition is basically grounded on two provisions of the Constitution. First, the Constitution says no law shall be passed authorizing the transfer of appropriations,” Mr. Carpio said in a briefing after the filing.
Article VI, Section 25 (5) of the Constitution stated that “no law shall be passed authorizing any transfer of appropriations” apart from the President, the Senate President, the House Speaker, the Chief Justice, and heads of Constitutional Commissions for their respective offices.
The 2024 General Appropriations Act (GAA) paved the way for Finance Secretary Ralph G. Recto to transfer any excess funds from PhilHealth to the national treasury to help fund the unprogrammed appropriations.
“That is a clear violation because the general is that no law shall be passed authorizing the transfer of appropriations,” Mr. Carpio added, noting the president can authorize the transfer of savings for one item in the budget item but not the finance chief.
“In appropriation, if P1 billion is allocated to build a bridge but only P800 million is used, the P200 million in savings cannot be transferred to another item. However, the 2024 GAA authorizes the Secretary of Finance, who isn’t among the officials authorized to transfer funds, to transfer excess funds, which is a violation,” he added in mixed English and Filipino.
The former top court justice said there are no surplus funds because Universal Healthcare services are not yet fully implemented as many Filipinos still need medicine and there is a shortage of hospitals.
The plaintiffs further argued that since PhilHealth funds are “special funds,” they cannot be transferred unless their purpose has been abandoned or accomplished.
“We’re asking the court to issue a TRO because this situation is irreparable. For PhilHealth alone, they are set to transfer P89.9 billion. Once that amount is spent, it’s irreparable because there is no entity in the government that can reimburse such funds,” Mr. Carpio said. — Chloe Mari A. Hufana