Four justices of the Supreme Court (SC) have asserted that there is no criminal liability that can attach to then Finance Secretary and now Executive Secretary Ralph Recto, who ordered the remittance of the Philippine Health Insurance Corporation’s (PhilHealth) P60 billion worth of unused funds to the National Treasury.
This came after SC recently ruled unanimously in favor of returning the P60 billion excess funds to PhilHealth.
The SC said in its press release on Saturday that four Justices who submitted their respective separate opinions noted that Recto solely ‘acted in good faith in implementing Special Provision 1(d).’
Special Provision 1(d) permitted the return of fund balances or excess reserve funds from government-owned or -controlled corporations to the National Treasury to fund unprogrammed appropriations under the 2024 General Appropriations Act (GAA).
‘Simply doing his job’
According to Associate Justice Raul Villanueva, to hold the former chief of the Department of Finance (DOF) liable in any way ‘is like punishing him for simply doing his job.’
‘If he did not comply with the valid dictates of Special Provision 1(d), then he may possibly become culpable of violating the law, which would have made his situation even worse,’ Villanueva said, as cited in the SC’s press release.
Associate Justice Ricardo Rosario said no liability for technical malversation may attach to Recto, adding that the former Finance chief ‘carried out the statutory commands in good faith, pursuant to a law then presumed valid, and without any intention to divert funds contrary to legislative will.’
‘The constitutional infirmity of Special Provision No. 1(d) renders the provision void-but it does not render criminal those who were duty-bound to follow it,’ said Rosario.
As for Associate Justice Rodil Zalameda, the actions of Recto were ‘strictly ministerial’ and were carried out in accordance with the explicit and mandatory terms of the 2024 GAA.
‘As discussed above, they were characterized by institutional good faith and due diligence, as they relied on formal clearances from agencies like the OGCC (Office of the Government Corporate Counsel), the COA (Commission on Audit), and the GCG (Governance Commission for Government-Owned or-Controlled Corporations),’ Zalameda said.
Associate Justice Samuel Gaerlan, meanwhile, said the court’s decision ‘does not negate Secretary Recto’s good faith, nor does it automatically create a basis for his liability.’
‘A public officer shall not be civilly liable for acts done in the performance of his or her official duties, unless there is a clear showing of bad faith, malice or gross negligence,’ Gaerlan said.
On Friday, SC spokesperson Atty. Camille Ting said the country’s highest court declared void Special Provision 1(d), Chapter XLIII of the 2024 GAA, and the DOF Circular 003-2024, directing the return of the P60 billion in PhilHealth funds.
The P60 billion forms part of the P89.9 billion in unused funds of PhilHealth.
After the SC decision, the Department of Budget and Management committed to the timely and transparent release of the PhilHealth funds. /mr