Questions over the controversial transfer of billions in government funds have now reached the Office of the Ombudsman after health advocate Dr. Tony Leachon filed plunder and technical malversation complaints against Executive Secretary Ralph Recto and several Cabinet officials.
The complaint stemmed from the transfer of ₱60 billion in excess PhilHealth funds and ₱107 billion from the Philippine Deposit Insurance Corporation (PDIC) to the National Treasury.
Leachon said the complaint was backed by the 2025 Supreme Court ruling that declared unconstitutional a special provision in the 2024 General Appropriations Act allowing the transfer of excess funds from government-owned and controlled corporations to the National Treasury.
The questioned provision earlier prompted the Department of Finance, then headed by Recto, to issue a circular directing the transfer of ₱89.9 billion in PhilHealth funds. The High Court later ordered the return of ₱60 billion that had already been transferred.
“These ₱60 billion PhilHealth funds, meant for indigent families and primary care, were stripped of their rightful purpose, betraying the people’s right to health,” Leachon said in a statement.
“PhilHealth’s already ₱356.6 billion deficit left hospitals unpaid, cancer and dialysis programs starved, and millions of Filipinos abandoned,” he added.
Leachon also slammed what he described as the delayed restoration of the funds.
“The so-called restoration of ₱60 billion in the 2026 budget was a hollow gesture — too late for families already buried in debt, too late for patients who never received care,” he said.
“This is not merely a legal matter but a moral one. The ₱60 billion could have saved lives, kept hospitals afloat, and brought dignity to families in despair. Instead, it was stolen from the sick and the poor.”
Under the Anti-Plunder Law, plunder is committed when a public official amasses ill-gotten wealth amounting to at least ₱50 million through a series of unlawful acts.
Technical malversation, meanwhile, involves the use of public funds for purposes different from those originally authorized by law.
Leachon also alleged that the transfer of ₱107 billion in PDIC funds weakened depositor safeguards and undermined public trust in financial institutions.
“Filing these charges is a duty to the Filipino people — to restore integrity, deter future abuses, and reclaim the promise of universal health care,” he said.
