PhilHealth TRO seen delaying projects with no firm funding

By Chloe Mari A. Hufana, Reporter

THE Supreme Court’s temporary restraining order (TRO) on the transfer of P29.9 billion from the Philippine Health Insurance Corp. (PhilHealth) to the Bureau of the Treasury could have an impact on government projects relying on unprogrammed funds, an economist said.

“This can even affect infrastructure as some funds can be diverted from programmed projects to unprogrammed but pressing projects,” Leonardo A. Lanzona, Jr., an economics professor at the Ateneo de Manila, told BusinessWorld via Messenger chat.

He added that the TRO could influence future transfers of reserves held by government-owned and -controlled corporations (GOCCs) to the Treasury.

Mr. Lanzona likened the PhilHealth fund transfers to former President Benigno S.C. Aquino III’s Development Acceleration Program, which the high court ruled against.

“All along there was already a precedent that should prevent such transfers,” he said.

In July, the Department of Finance said remittances from PhilHealth and other GOCCs to the Treasury facilitated the Department of Budget and Management’s release of P27.5 billion to settle claims by frontliners eligible for COVID pandemic allowances.

A provision in the 2024 General Appropriations Act allowed the DoF to issue Circular No. 003-2024, authorizing PhilHealth and the Philippine Deposit Insurance Corp. to transfer P89.9 billion and P110 billion, respectively.

These were intended to fund unprogrammed appropriations worth P203.1 billion in health, infrastructure, and social services.

Supreme Court Spokesperson Camille Sue Mae L. Ting said on Tuesday that the TRO on the last tranche of the PhilHealth fund transfer, worth P29.9 billion and due next month, is effective immediately.

The Court consolidated the petitions filed by 1SAMBAYAN Coalition, a group led by Senator Aquilino Martin D. Pimentel III, and another group led by Bayan Muna Chairman Neri J. Colmenares.

The three petitions were filed to stop the transfer of P89.9 billion from PhilHealth to the Treasury.

The TRO was issued after P60 billion in PhilHealth funds had been transferred to the Treasury in three tranches beginning May.

Ms. Ting said the court could still consider a plea for a status quo ante order, which could allow the return of the P60 billion to PhilHealth.

Former Party-list Rep. Renato B. Magtubo said the TRO “has no real effect” on the projects due to be funded by unprogrammed allocations.

These projects “will only be realized if there are additional funds collected by the National Government,” he told BusinessWorld via Viber.

Such project funding is contingent on the availability of funds even if they were granted appropriations,” he said.