House to allow transfer of excess funds to NG from GOCCs — lawmaker

THE House of Representatives is likely to keep a provision allowing the National Government (NG) to siphon unused funds of state-owned companies, according to a congressman, citing a consensus among lawmakers.

“I think it will still be retained,” Party-list Rep. Ramon Rodrigo L. Gutierrez told a news briefing on Wednesday. “That’s the general consensus of Congress.”

Healthcare advocates and critics have slammed the transfer of P89.9 billion in excess funds from the Philippine Health Insurance Corp. (PhilHealth) to the national Treasury, saying it violates its charter.

The Finance department has defended the move, saying the money would be used to fund infrastructure projects and other social programs.

Allowing the state health insurer to transfer its funds to the Treasury “is a very effective way of instituting fiscal discipline,” Deputy Majority Leader and Party-list Rep. Jude A. Acidre told the same briefing.

“It’s purely limited to the subsidies extended to PhilHealth,” Mr. Gutierrez said. “We are definitely not touching any of the premiums.”

In March, the Department of Finance issued a circular ordering government-owned and -controlled corporations (GOCCs) including PhilHealth to remit their excess funds to the Treasury, which would allow the government to fund unprogrammed appropriations.

PhilHealth is remitting the money in four tranches, with P20 billion already sent on May 10 and P10 billion on Aug. 21. A P30 billion transfer is scheduled for October, and the remaining P29.9 billion for November.

Plaintiffs led by Senator Aquilino Martin “Koko” D. Pimentel III has asked the Supreme Court to stop the transfer of the PhilHealth funds to the National Government and void the Finance department circular.

The tribunal has set a hearing on the lawsuits for Jan. 14.

Finance Secretary Ralph G. Recto has rejected allegations that the PhilHealth funds are a form of “pork barrel.”

Unprogrammed funds are not pork barrel, and most of them will be used for foreign-assisted projects and international commitments, he said last month.

These include the Bataan-Cavite Interlink bridge, Metro Manila Subway, Panay-Guimaras-Negros Island bridges, Davao City bypass and salary standardization for state workers.

The funds will also support the North-South Commuter Railway System, Philippine National Railways South Long-Haul line and other big-ticket infrastructure works.

Mr. Recto has said the fund transfers are legal and conducted after consulting the Governance Commission for GOCCs, Office of the Government Corporate Counsel, and Commission on Audit.

He also said the remitted funds include a portion of the state subsidy to GOCCs and not from PhilHealth members’ contributions.

At a Senate hearing last month, Mr. Recto said projects funded by unprogrammed appropriations would boost economic output by 0.7%, provide as much as P24.4 billion in additional revenue and create jobs. — Kenneth Christiane L. Basilio