Category: Philippines Daily Inquirer

In a political moment crowded with speculation and accusation, the Supreme Court has delivered a much-needed reminder: public officials cannot be punished for obeying a law Congress required them to implement.

This clarification is not merely procedural- it is a defense of institutional integrity.

The separate opinions of the justices on the PhilHealth fund transfer categorically affirm that then Finance Secretary and now Executive Secretary Ralph G. Recto acted in good faith, under a statutory directive presumed valid at the time.

Associate Justice Raul B. Villanueva captured the fundamental truth many critics have missed: ‘To hold Secretary Recto liable in any way whatsoever 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.’

The message is unmistakable: Recto was following Congress’ instructions-not defying them.

Associate Justice Ricardo R. Rosario was equally pointed: ‘Given the foregoing, no liability for technical malversation may attach. they were characterized by institutional good faith. [The provision’s] constitutional infirmity. does not render criminal those who were duty-bound to follow it.’

This is not a loophole. It is a recognition of the legal principle that no man can be faulted for executing a mandate that was binding at the time.

Justice Rodil V. Zalameda reinforced this: ‘The DOF Secretary’s actions were strictly ministerial. characterized by institutional good faith and due diligence, as they relied on formal clearances from the OGCC, the COA, and the GCG.’

Every procedural safeguard was observed. All oversight bodies concurred. PhilHealth’s own Board approved the remittance.

Where, then, is the wrongdoing?

Justice Samuel H. Gaerlan’s reasoning closes the debate: ‘That the Court now declares [the provision] void does not negate Secretary Recto’s good faith, nor does it automatically create a basis for his liability. unless there is a clear showing of bad faith, malice or gross negligence.’

There is none.

The ruling ultimately affirms something essential: Good faith is not a political argument-it is a legal reality.

And ES Recto’s actions, as meticulously documented, fall squarely within the boundaries of lawful and conscientious governance.

The Philippines is set to maintain steady growth, although still falling short of the Marcos administration’s target, as global trade performance and domestic demand help navigate some Asian countries to resiliency, the Institute of International Finance (IIF) said.

In its latest outlook, the IIF projected the Philippine economy to expand 4.7 percent in 2025 and 4.8 percent in 2026. The 2025 figure mirrors earlier estimates by former Finance Secretary Ralph Recto and remains below the government’s 5.5 to 6.5 percent target range for the year.

Meanwhile, the 2026 forecast also falls short of the government’s 6 to 7 percent goal.

Despite this, the IIF said the Philippines-along with other major economies in the Asia-Pacific-was moving steadily toward fiscal consolidation, even after being rattled by the flood control corruption scandal that shook investor sentiment and business confidence.

Zooming out, the IIF noted that the Asia-Pacific region remains resilient despite a ‘turbulent external environment,’ with economies absorbing the impact of higher US tariffs and political uncertainty.

Regional growth is projected to reach 5.3 percent in 2025 before easing to 4.9 percent in 2026, supported by strong export performance, solid foreign direct investments (FDI) inflows and deepening integration into global technology and electronics supply chains.

However, recent developments in the Philippines contradict IIF’s resilient outlook.

The country recently posted a double-digit surge in export growth, helping narrow the trade deficit by more than a third in October. Much of this was driven by electronics.

However, export prospects have been tempered by global uncertainties. The export target was recently downgraded to between $110.8 billion and $113.4 billion, over 30 percent lower than the original range, as persistent external headwinds and US tariff risks cloud the outlook.

Tariff exemption

This comes even as more than $1 billion worth of Philippine agricultural exports bound for the US will be spared from the 19-percent tariff imposed last August.

FDI also showed mixed signals. Net inflows in August turned positive after months of outflows, but remained 40 percent lower than a year earlier.

In fact, these developments have already prompted Economic Planning Secretary Arsenio Balisacan to acknowledge that the Marcos administration is now unlikely to meet its full-year growth target, citing persistent external headwinds and uneven sectoral performance.

Even so, the IIF remains bullish that the broader Asia-Pacific region is still ‘well-positioned’ in a challenging global environment.

‘The region’s diversity is a major strength. Large and young labor forces, competitive manufacturing bases, strong digital-services capabilities, and expanding roles in critical minerals and strategic supply chains continue to draw capital to the region,’ it said. INQ

Tropical Depression Wilma has maintained its strength as it remains over the east of Eastern Visayas, the state weather bureau reported.

As a result, Tropical Cyclone Wind Signal No. 1 is still in effect in 27 areas across the country on Saturday (December 6).

In its 8 a.m. weather bulletin, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (Pagasa) said that Wilma continues to carry a maximum wind speed of 45 kilometers per hour (kph) and gustiness of up to 55 kph.

It is moving westward slowly and has been spotted 70 kilometers east of Borongan City in Eastern Samar.

Wind Signal No. 1 remains hoisted over the following areas, with wind speeds ranging from 39 to 61 kph, which may potentially bring ‘minimal to minor threat to life and property:’

Luzon

Sorsogon

Masbate including Ticao and Burias Islands

Romblon

Southern portion of Oriental Mindoro (Bulalacao, Mansalay, Roxas, Bongabong)

Southern portion of Occidental Mindoro (Magsaysay, San Jose, Rizal, Calintaan)

Northernmost portion of Palawan (Aracelli, Dumaran, El Nido, Taytay) including Cuyo, Calamlan and Cagayancillo Islands

Visayas

Northern Samar

Eastern Samar

Samar

Biliran

Leyte

Southern Leyte

Cebu including Bantayan and Camotes Islands

Bohol

Negros Occidental

Siquijor

Northern and central portion of Negros Oriental (City of Guihulngan, Canlaon City, Vallehermoso, La Libertad, Jimalalud, Tayasan, Ayungon, Bindoy, Manjuyod, Amlan, San Jose, Dumaguete City, Valencia, Sibulan, Bacong, Mabinay, City of Bayawan, Basay)

Guimaras

Iloilo

Capiz

Aklan

Antique

Mindanao

Surigao del Norte including Siargao and Bucas Grande Islands

Dinagat Islands

Northern portion of Surigao del Sur (Carrascal, Cantilan, Madrid, Carmen, Lanuza)

Northern portion of Agusan del Norte (Kitcharao, Jabonga, Santiago, Tubay, City of Cabadbaran, Remedios T. Romualdez, Magallanes)

Camiguin /apl

Acting Philippine National Police chief Lt. Gen. Jose Melencio Nartatez Jr. ordered the PNP Internal Affairs Service to separately investigate an alleged robbery by five police officers of P14 million in Pampanga.

Police Regional Office Central Luzon (PRO 3) relieved the police officers last Tuesday, while its own investigation was ongoing, after members of the Angeles City Police Station 2 reported them to the authorities through an unsigned letter.

‘There will be an investigation and I want this done in the soonest possible time,’ Nartatez stressed in the statement.

‘If the investigation result would find them liable, I assure our kababayan that all of them would not only be dismissed from the service, they would also go straight to jail,’ he added.

The alleged robbery took place on Nov. 25 at the victim’s home in Barangay Santa Cruz, Porac, Pampanga, in which the victim, her family and her guests were forced into a comfort room while the officers supposedly took the cash.

PRO 3 Director Brig. Gen. Ponce Rogelio Peñones Jr. told reporters in a phone interview earlier on Friday that the regional police will file criminal and administrative cases against the officers allegedly involved in the robbery.

The officers allegedly involved were a police major, a police corporal and two police staff sergeants assigned to the Angeles City Police Station 2, as well as another police corporal assigned to the Zambales Provincial Police Office.

Bank lending slowed to a 16-month low in October, as the widening graft scandal that has implicated high-ranking government officials continued to erode business and consumer confidence, threatening to dampen the central bank’s efforts to spur growth.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed outstanding loans from big lenders, excluding their short-term placements with the central bank, climbed by 10.3 percent from a year earlier in October to P13.79 trillion.

This marked the slowest pace of credit growth since June 2024, when loans expanded by 10.1 percent.

The deceleration comes as the BSP presses ahead with a rate-cutting campaign aimed at supporting an economy weighed down by the corruption probe and by external pressures, including global trade uncertainties.

Since August last year, the central bank has reduced its benchmark rate-which guides banks’ lending costs-by 1.75 percentage points, to 4.75 percent. Governor Eli Remolona Jr. has signaled more easing may be in store.

But analysts said the central bank’s easing moves have been slow to filter through the financial system. Average lending rates at big banks stood at 7.817 percent in September, only about 3 percent lower than at the end of last year, BSP figures show.

Experts said the stickiness of borrowing costs, combined with weakening sentiment, risks blunting the effect of the central bank’s progrowth efforts.

Households are becoming more cautious

‘Consumer borrowing is cooling as families become more cautious amid inflation pressures and disaster-related income losses, while businesses are delaying expansion because of uncertainty linked to governance issues, stalled public projects and softer demand,’ said John Paolo Rivera, a senior research fellow at the state-run Philippine Institute for Development Studies.

‘Monetary easing works best when firms are confident enough to borrow and invest,’ Rivera added.

The BSP said loans to businesses grew by 9.1 percent in October to P11.6 trillion, no faster than the preceding month.

Bank lending to manufacturing companies contracted by 8.4 percent at a time when the ‘ber’ months are keeping factories busy to meet the holiday demand. By contrast, credit to the real estate sector grew 9.9 percent, while loans to retailers climbed 11.7 percent, both accelerating from September.

Outstanding consumer loans, meanwhile, climbed by 23.1 percent to P1.85 trillion, the slowest growth in two years or since October 2023’s 22.8-percent expansion.

Credit card receivables posted a slightly slower increase of 29.2 percent, while motor vehicle loans growth eased to 17.6 percent. Salary-based general-purpose consumption loans also expanded at a softer pace of 5.8 percent.

‘To make the rate cuts effective, the BSP must pair them with clear communication and trust-building measures, while businesses should focus on resilience and efficiency,’ said Jonathan Ravelas, senior adviser at Reyes Tacandong and Co. INQ

Following the Supreme Court (SC) decision to return the P60 billion in funds of the Philippine Health Insurance Corporation (PhilHealth) from the National Treasury, the Office of the Solicitor General will review the ruling to determine the appropriate action, according to the Presidential Communications Office (PCO).

‘We respect the decision of the Supreme Court. The Office of the Solicitor General will review the ruling and decide on the appropriate course of action to take, including the filing of a motion for reconsideration,’ the PCO said in a statement.

The SC declared void the Special Provision 1(d), Chapter XLIII of the 2024 General Appropriations Act (GAA) and the Department of Finance Circular 003-2024. The Special Provision 1(d) of the 2024 GAA authorized the return of ‘fund balance’ or excess reserve funds of government-owned or controlled corporations to the National Treasury.

PhilHealth remitted P60 billion to the National Treasury under the 2024 GAA provision and the DOF circular to transfer P89.9 billion to the National Treasury. However, the SC found that the special provision in the GAA is ambiguous for its concept of ‘fund balance,’ which is not defined in the 2024 GAA.

The PCO also noted President Ferdinand Marcos Jr.’s directive last September 20 to restore the P60 billion funds of PhilHealth.

The PCO said that this is ‘a recognition of the agency’s stronger performance, increased absorptive capacity and expanded benefits in line with the government’s goal of delivering universal healthcare for all Filipinos.’

Marcos then said that the funds would be returned to the state health insurer, following the savings generated from other government agencies, particularly the Department of Public Works and Highways. /mr

A Rolls Royce and a Bentley for sale, each with a substantial discount-and still no takers.

The two luxury cars are the last of the vehicles owned by contractor couple Curlee and Sarah Discaya that remain on sale. They belong to a group of four luxury cars put up for a second auction held by the Bureau of Customs (BOC) on Friday.The agency only managed to sell a 2023 Toyota Sequoia for P6 million to Jose Mario Esteban III, the winning bidder, and a 2022 Toyota Tundra to RMCE Metal Products Trading Corp., which won its bid at P3.52 million.The remaining unsold cars were the Rolls-Royce Cullinan (2023)-which the BOC offered at P36.3 million after slashing by P9 million the original floor price of P45.3 million-and the Bentley Bentayga (2022) which was offered at P13.9 million, down by P3.4 million from the original price of P17.3 million.

Vlog features

These are among the seven confiscated vehicles whose sale the Discayas no longer challenged after the cars were found to have no import documentation.

The couple are at the center of the corruption scandal over the government’s flood-control projects with private contractors. Video or ‘vlog’ features on their wealth, which showed they have at least 40 vehicles, were aired early this year, then suddenly went viral as the scandal began to unravel last July.

Direct offers

The BOC sold three of the confiscated cars on Nov. 17, raising P38.2 million in that auction.

Sealing products company Simplex Industrial Corp. bought a Mercedes-Benz G500 Brabus (2019) for P15.5 million and a Mercedes-Benz G63 AMG (2022) for P15.6 million, while Lesentrell Jewelries bought a 2021 Lincoln Navigator for P7.1 million.

An auction committee formed by the bureau will soon decide what to do with the Rolls Royce and the Bentley, BOC Deputy Chief of Staff Chris Bendijo told the inquirer.

He said one option is to solicit direct offers from buyers who will themselves set the price.

But destroying the assets is out of the question, as the BOC had done on smuggled cars it had confiscated in the past.

‘No plans of destroying,’ Bendijo said. ‘As [BOC] Commissioner [Ariel Nepomuceno] had said, he is inclined to sell forfeited goods to generate revenue.’

The Supreme Court has voided a special provision of the 2024 budget law and a circular from the Department of Finance (DOF), paving the way for the return of P60 billion in funds to the Philippine Health Insurance Corp. (PhilHealth) that were previously transferred to the National Treasury.

On Sept. 20, President Marcos, in remarks made at Dr. Jose Fabella Memorial Hospital in Manila, said he had already ordered the amount to be returned to the state health insurer so it could be used for the expansion of PhilHealth services.

The amount was part of the ‘excess’ PhilHealth funds totaling P89.9 billion that the DOF, then headed by Ralph Recto, had intended to be moved to the treasury.

At a briefing on Friday, Supreme Court spokesperson Camille Ting said the high court, through Associate Justice Amy Lazaro-Javier, arrived at a unanimous vote declaring void Special Provision 1(d), Chapter XLIII of the 2024 General Appropriations Act (GAA), as well as DOF Circular No. 003-2024.

The provision authorized the return of the fund balance or excess reserve funds of government-owned or -controlled corporations (GOCCs) to the National Treasury to fund unprogrammed appropriations under the 2024 GAA.

In compliance with provision and the DOF Circular, which directs the transfer of the P89.9 billion to the national treasury, PhilHealth remitted P60 billion in three tranches.

Of PhilHealth’s P89.9-billion excess funds, P20 billion was transferred to the treasury in May 2024, followed by P10 billion in August and P30 billion in October the same year.

The remaining P29.90 billion was supposed to be transferred in November 2024, but was blocked by the Supreme Court’s issuance of temporary restraining order.

In its decision on Friday, the Supreme Court held that the questioned GAA provision was a ‘rider’ in nature and ‘not germane or related to the bill’s purpose.’

‘The Constitution requires all provisions of the GAA to be germane to its purpose to prevent surprise or fraud upon the legislature and to fairly inform the people of the bills’ subject,’ Ting said, citing the decision.

A provision is considered germane if it is ‘particular, unambiguous, and appropriate,’ she said.

Not defined

While Special Provision 1(d) was specific in the sense that it related to unprogrammed appropriations in the GAA, the Supreme Court found the provision ambiguous because it introduced the concept of ‘fund balance,’ a term not defined in the 2024 GAA.

The high court said the provision was void for implicitly repealing Section 11 of the Universal Health Care Act (UHCA, or Republic Act No. 11223) and the sin tax laws.

Section 11 of the UHCA requires PhilHealth to maintain reserve funds up to a two-year ceiling of projected program expenses. Each year, PhilHealth must set aside part of its net income as reserve funds, and any unused funds must be invested so that earnings are added back to these reserves.

If the reserve funds exceed the ceiling, the Supreme Court said, the excess must be used to increase the benefits under the National Health Insurance Program (NHIP) and reduce members’ contributions.

The 2024 GAA provision was also found to be contrary to the sin tax laws, which earmark specific excise taxes exclusively for the UHCA’s implementation.

‘The Bureau of Treasury must set aside these amounts for the UHCA’s implementation, and Congress must fully allocate them to PhilHealth through the GAA. Congress cannot reduce, suspend, or withhold these earmarked funds,’ the Supreme Court said.

Compliance

Executive Secretary Recto on Friday said the executive department would comply with the Supreme Court order.

‘As we always said before the decision was issued, the Executive will follow the Supreme Court’s order, just as we followed and complied with the directive of Congress then to use the dormant funds of GOCCs for the benefit of the people,’ he said.

Recto was the finance chief at the time when the fund transfer came to light and drew strong objections from stakeholders in public health sector, civil society groups, and some lawmakers.

‘We reiterate that the Executive simply complied with the congressional mandate under the 2024 GAA, and that the [DOF’s] role is solely in revenue generation and debt and deficit management. We believed then, and still believe, that the directive was a common-sense approach to optimize government coffers without resorting to additional borrowing or new taxes,’ he added.

‘Right to health’ upheld

Bayan Muna chair Neri Colmenares, one of the petitioners who asked the Supreme Court to stop the PhilHealth fund transfer, said the high court’s decision was a ‘victory for the right to health.’

‘It is a significant development that the Court upheld the right to health of the people. We have long argued that the right to health is self-executing and does not need an implementing law to be a source of right. We can use this decision in cases where the right to health is violated,’ Colmenares said in a statement.

Sen. JV Ejercito, one of the principal authors of the universal health care law, described the Supreme Court’s return order as a ‘welcome correction.’

‘From the very beginning, we made it clear that these funds belong to PhilHealth,’ Ejercito said. ‘We should not call this ‘excess funds’ considering that funds set aside for health care are not enough. Many of our countrymen cannot afford to pay for medical and hospital expenses.’ -WITH REPORTS FROM LUISA CABATO, JASON SIGALES, KRIXIA SUBINGSUBING AND INQUIRER RESEARCH

Jason Perkins scored a conference-high 33 points as Phoenix defeated Blackwater, 106-98, in the PBA Philippine Cup on Saturday at Ynares Center in Antipolo City.

Perkins went 13 of 20 from the field while grabbing seven rebounds as the Fuel Masters resumed their campaign by improving to 3-6.

He was ably supported by Ricci Rivero, who added 25 points, nine rebounds and three assists to help Phoenix restore a share of nine spot with Titan Ultra.

Phoenix bounced back from a 102-93 loss to Barangay Ginebra last Nov. 16 prior to the Fiba break.

The Fuel Masters are within striking distance of Ginebra and the Meralco Bolts, who are tied for seventh and eighth at 3-4.

Blackwater suffered a seventh straight defeat to go down at 1-7 despite 25 points, five rebounds and five assists from Sedrick Barefield plus 18 points and 10 rebounds from Christian David.

Abu Tratter had 17 points and six rebounds while Dalph Panopio added 12 points and five assists in their first game since being tapped to represent Gilas Pilipinas in the 33rd Southeast Asian Games in Thailand.

They will miss the Bossing’s final two games of the eliminations while they are in the Thai capital of Bangkok for the centerpiece 5-on-5 event.

Sen. Loren Legarda on Saturday welcomed the Supreme Court’s decision directing the government to return the ?60 billion earlier transferred from the Philippine Health Insurance Corporation (PhilHealth) back to the agency through the 2026 General Appropriations Act (GAA).

The High Court likewise prohibited any further transfer of the remaining ?29.9 billion, making the ruling immediately executory.

‘This decision is correct and consistent with what we have long fought for-PhilHealth’s funds must remain with PhilHealth. These subsidies exist to protect the Filipino people, not to be diverted elsewhere,’ Legarda said.

PhilHealth had originally been instructed to remit a total of ?89.9 billion in excess funds to the National Treasury. Of this amount, ?60 billion was already remitted last year before the Supreme Court issued a temporary restraining order (TRO), halting the transfer of the remaining ?29.9 billion.

Both the House of Representatives and the Senate have since incorporated the restoration of the ?60 billion into the 2026 General Appropriations Bill (GAB) being discussed in the Senate. This was the clarification Legarda underscored during the Senate session on December 4, 2025.

During the same session, Legarda reiterated her longstanding position that Congress has a responsibility to ensure that PhilHealth receives the support it needs to deliver essential health services. She stressed that the allocation under the 2026 NEP remains insufficient and does not comply with the mandated sin tax law.

‘Congress owes the Filipino people a properly funded PhilHealth,’ Legarda emphasized. ‘In my interpellation on the General Principles of the 2026 budget, I raised concerns over the gaps in PhilHealth’s appropriations for 2024, 2025, and 2026. We must ask where the funds were originally placed, why they were removed, and how we intend to fully restore them.’

Legarda also underscored the need for transparency and accountability in the use of PhilHealth subsidies.

She formally requested PhilHealth and the Department of Health (DOH) to submit detailed liquidation reports to ensure that the restored funds are used efficiently and aligned with the agency’s mandate. ‘As we restore these amounts, we must also demand full transparency,’ Legarda said. ‘I asked PhilHealth and the DOH to account for these funds so that we can determine how the restored budget will genuinely benefit our people.’

Building on this, Legarda reiterated that accountability must go hand in hand with adequate and reliable funding. She called for the full restoration of all funding deficits across all sources, including earmarked revenues from sin taxes, PAGCOR, and PCSO, which have accumulated over the years.

A long-time advocate for accessible and high-quality healthcare, Legarda reaffirmed her commitment to protecting the financial stability of PhilHealth and ensuring that its resources directly support Filipino families, especially the most vulnerable.

‘Health care is not a privilege; it is a right. Every peso intended for the people’s health must be safeguarded,’ she said.