SC issues TRO vs PhilHealth fund transfer to treasury | ABS-CBN
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SC issues TRO vs PhilHealth fund transfer to treasury
SC issues TRO vs PhilHealth fund transfer to treasury
Philippine Health Insurance Corporation (PhilHealth) manually process their members’ transactions at PhilHealth National Capital Region Central Branch in Quezon City on Tuesday, September 28, following the shutdown of their online system due to a cyberattack last week. Maria Tan, ABS-CBN NewsMANILA (2nd UPDATE) — The Supreme Court (SC) has issued a temporary restraining order (TRO) on the transfer of P89.9 billion in unused funds of the Philippine Health Insurance Corp. (PhilHealth) to the Bureau of the Treasury.
Philippine Health Insurance Corporation (PhilHealth) manually process their members’ transactions at PhilHealth National Capital Region Central Branch in Quezon City on Tuesday, September 28, following the shutdown of their online system due to a cyberattack last week. Maria Tan, ABS-CBN NewsMANILA (2nd UPDATE) — The Supreme Court (SC) has issued a temporary restraining order (TRO) on the transfer of P89.9 billion in unused funds of the Philippine Health Insurance Corp. (PhilHealth) to the Bureau of the Treasury.The move is seen to augment unprogrammed appropriations in the 2024 budget.
The move is seen to augment unprogrammed appropriations in the 2024 budget.
SC spokesperson Camille Sue Mae Ting made the announcement at a press briefing on Tuesday afternoon.
SC spokesperson Camille Sue Mae Ting made the announcement at a press briefing on Tuesday afternoon.
"The Supreme Court issued a temporary restraining order to enjoin the further transfer of PhilHealth funds to the national treasury. The TRO is effective immediately," she said.
"The Supreme Court issued a temporary restraining order to enjoin the further transfer of PhilHealth funds to the national treasury. The TRO is effective immediately," she said.
"Over the past few months, meron na pong transfer ng funds to the national treasury to unprogrammed appropriations. The TRO is really to prevent the further transfer of more funds from PhilHealth to the national treasury," Ting explained.
"Over the past few months, meron na pong transfer ng funds to the national treasury to unprogrammed appropriations. The TRO is really to prevent the further transfer of more funds from PhilHealth to the national treasury," Ting explained.
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The en banc consolidated the petitions of 1SAMBAYAN Coalition filed last October 16, by various groups led by Senate Minority Leader Aquilino "Koko" Pimentel III in August and Bayan Muna in September.
The en banc consolidated the petitions of 1SAMBAYAN Coalition filed last October 16, by various groups led by Senate Minority Leader Aquilino "Koko" Pimentel III in August and Bayan Muna in September.
All three petitions challenged the return of excess funds from government owned and controlled corporations to the national treasury to fund unprogrammed appropriations.
All three petitions challenged the return of excess funds from government owned and controlled corporations to the national treasury to fund unprogrammed appropriations.
"I understand there are more cases but the Court has to study if appropriate ba to consolidate [these cases]," Ting added.
"I understand there are more cases but the Court has to study if appropriate ba to consolidate [these cases]," Ting added.
So far, PhilHealth transferred P20 billion to the national treasury in May, while another P10 billion was transferred in August.
So far, PhilHealth transferred P20 billion to the national treasury in May, while another P10 billion was transferred in August.
The state-run health insurer is set to remit the next tranche of P30 billion this month and the remaining P29.9 billion is scheduled for transfer in November.
The state-run health insurer is set to remit the next tranche of P30 billion this month and the remaining P29.9 billion is scheduled for transfer in November.
Ting said the return of funds is not the subject of the TRO issued by the en banc.
Ting said the return of funds is not the subject of the TRO issued by the en banc.
The Department of Finance (DOF) earlier justified the transfer, saying billions in unused and idle funds of government corporations will be used for health, social services and infrastructure projects.
The Department of Finance (DOF) earlier justified the transfer, saying billions in unused and idle funds of government corporations will be used for health, social services and infrastructure projects.
The DOF said "unlocking these excess funds is a more prudent fiscal option" than borrowing more or imposing taxes. It also does not affect the delivery of services.
The DOF said "unlocking these excess funds is a more prudent fiscal option" than borrowing more or imposing taxes. It also does not affect the delivery of services.
The high court required respondents to submit their comment on the petition and application for TRO and/or writ of preliminary injunction within a non-extendible period of 10 days from receipt of notice.
The high court required respondents to submit their comment on the petition and application for TRO and/or writ of preliminary injunction within a non-extendible period of 10 days from receipt of notice.
Named respondents in the Pimentel-led petition were Executive Secretary Lucas Bersamin, Finance Secretary Ralph Recto and PhilHealth President and CEO Emmanuel Ledesma Jr. as well as Senate President Francis “Chiz” Escudero and House Speaker Martin Romualdez.
Named respondents in the Pimentel-led petition were Executive Secretary Lucas Bersamin, Finance Secretary Ralph Recto and PhilHealth President and CEO Emmanuel Ledesma Jr. as well as Senate President Francis “Chiz” Escudero and House Speaker Martin Romualdez.
'BEYOND THE POWER OF CONGRESS'
1-SAMBAYAN asked the SC to declare void Section 1(d) of the XLIII of the General Appropriations Act 2024 and the DOF Circular 003-2024.
1-SAMBAYAN asked the SC to declare void Section 1(d) of the XLIII of the General Appropriations Act 2024 and the DOF Circular 003-2024.
The petition of Pimentel's group said the insertion of the provision on unprogrammed appropriations is beyond the power of Congress to appropriate funds.
The petition of Pimentel's group said the insertion of the provision on unprogrammed appropriations is beyond the power of Congress to appropriate funds.
They also argued that the 2024 General Appropriations Act on unprogrammed appropriations cannot amend provisions of the Universal Health Care Act.
They also argued that the 2024 General Appropriations Act on unprogrammed appropriations cannot amend provisions of the Universal Health Care Act.
As for Bayan Muna, the group wants to block the fund transfer since the money may be used in the upcoming elections or will be placed in unprogrammed funds, where utilization is not immediately known.
As for Bayan Muna, the group wants to block the fund transfer since the money may be used in the upcoming elections or will be placed in unprogrammed funds, where utilization is not immediately known.
PETITIONERS REACT TO SC TRO
In a statement sent by PhilHealth president Ledesma, the state-run health insurer said they "fully respect and will abide by the decision."
In a statement sent by PhilHealth president Ledesma, the state-run health insurer said they "fully respect and will abide by the decision."
"We remain focused on our mission to provide all Filipinos with adequate financial protection against health risks through better and responsive benefit packages and availment policies that ensure greater access to healthcare services whenever and wherever they need them most," it said.
"We remain focused on our mission to provide all Filipinos with adequate financial protection against health risks through better and responsive benefit packages and availment policies that ensure greater access to healthcare services whenever and wherever they need them most," it said.
When asked about what will happen to the funds already remitted, PhilHealth spokesperson Israel Pargas said they will follow whatever the SC decision is on the matter.
When asked about what will happen to the funds already remitted, PhilHealth spokesperson Israel Pargas said they will follow whatever the SC decision is on the matter.
Retired Supreme Court Associate Justice Antonio Carpio, one of the petitioners from 1-SAMBAYAN, thanked the SC for the issuance of the TRO.
Retired Supreme Court Associate Justice Antonio Carpio, one of the petitioners from 1-SAMBAYAN, thanked the SC for the issuance of the TRO.
"This saves the poorest of the poor of Filipinos, numbering tens of millions, whose only source of life-saving medicine is the Philhealth. We hope that the Executive Branch will return all the transferred funds back to Philhealth pending the final decision of the Supreme Court," he said in a text message.
"This saves the poorest of the poor of Filipinos, numbering tens of millions, whose only source of life-saving medicine is the Philhealth. We hope that the Executive Branch will return all the transferred funds back to Philhealth pending the final decision of the Supreme Court," he said in a text message.
Former Bayan Muna Rep. Neri Colmenares welcomed the SC decision.
Former Bayan Muna Rep. Neri Colmenares welcomed the SC decision.
"This TRO is a significant victory for the Filipino people, especially for PhilHealth beneficiaries who rely on these funds for their healthcare needs. The transfer of these funds would have jeopardized the benefits of countless Filipinos relying on PhilHealth for essential health services. This decision prevents a grave injustice from occurring," he said in a statement.
"This TRO is a significant victory for the Filipino people, especially for PhilHealth beneficiaries who rely on these funds for their healthcare needs. The transfer of these funds would have jeopardized the benefits of countless Filipinos relying on PhilHealth for essential health services. This decision prevents a grave injustice from occurring," he said in a statement.
Colmenares underscored the importance of protecting public funds meant for healthcare from being reallocated for other uses.
Colmenares underscored the importance of protecting public funds meant for healthcare from being reallocated for other uses.
One of the co-petitioners, Bayan Muna Vice Chairperson Teddy Casiño said the SC decision reflects their assertion that the transfer undermines the primary purpose of PhilHealth to provide adequate healthcare for Filipinos.
One of the co-petitioners, Bayan Muna Vice Chairperson Teddy Casiño said the SC decision reflects their assertion that the transfer undermines the primary purpose of PhilHealth to provide adequate healthcare for Filipinos.
"Hinihikayat namin ang lahat na igalang ang TRO at tiyakin na ang mga pondo para sa pampublikong kalusugan ay hindi ginagalaw para sa ibang bagay. Nawa’y magsilbing paalala ito na ang kapakanan ng sambayanang Pilipino ang dapat laging mauna," he said in a separate statement.
"Hinihikayat namin ang lahat na igalang ang TRO at tiyakin na ang mga pondo para sa pampublikong kalusugan ay hindi ginagalaw para sa ibang bagay. Nawa’y magsilbing paalala ito na ang kapakanan ng sambayanang Pilipino ang dapat laging mauna," he said in a separate statement.
ABS-CBN News has reached out to the DOF for its comment on the matter.
ABS-CBN News has reached out to the DOF for its comment on the matter.
Last month, the Office of the Solicitor General asked the high court to dismiss the petition challenging the fund transfer.
Last month, the Office of the Solicitor General asked the high court to dismiss the petition challenging the fund transfer.
The OSG said the transfer is legal and the petition is flawed due to several procedural and substantive issues.
The OSG said the transfer is legal and the petition is flawed due to several procedural and substantive issues.
The SC has scheduled the oral arguments for the fund transfer on January 14,2025.
The SC has scheduled the oral arguments for the fund transfer on January 14,2025.
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