Executive Secretary Ralph Recto on Monday said he will fully cooperate with the Office of the Ombudsman as it conducts a preliminary investigation into the transfer of unused funds from the Philippine Health Insurance Corp. (PhilHealth).
“Let me reiterate my innocence, as opined by Supreme Court justices, that no criminal liability may attach to me, as former Secretary of Finance, for acting in good faith and in accordance with a direct mandate from Congress in ordering the remittance of PhilHealth’s unused funds,” Recto said.
His statement came after Save the Philippines Coalition filed a complaint against him and former PhilHealth president and chief executive officer Emmanuel Ledesma over the remittance of the government-owned and controlled corporation’s (GOCC) excess funds to the National Treasury.
The Executive Secretary said he respects the right of citizens to seek legal remedies and is prepared to respond to the allegations.
“With the able representation by the Solicitor General, I welcome the opportunity to clarify the issues, prove my innocence, and debunk the allegations put forth,” Recto said.
The complaint stems from the government’s order requiring PhilHealth to return P89.9 billion in surplus reserves to the National Treasury. Of that amount, P60 billion was remitted last year before the Supreme Court issued a temporary restraining order halting the transfer of the remaining P29.9 billion.
Save the Philippines Coalition said its filing is anchored on the Supreme Court’s recent ruling directing the government to restore the P60 billion already transferred, with the funds to be returned to PhilHealth through the 2026 General Appropriations Act.
Recto, who was finance secretary at the time of the remittance, reiterated that no criminal liability should attach to actions taken in his official capacity.
Citing opinions expressed by Supreme Court justices that the fund transfer was carried out in good faith and pursuant to authority granted by Congress, he said the case is the first he has faced in more than three decades of government service and described it as part of the responsibilities of public office.
“I will not get distracted by political noise,” Recto said, adding that improving government performance and public services remains his priority.
