Executive Secretary Ralph Recto and former PhilHealth CEO Emmanuel Ledesma Jr. face complaints of technical malversation, graft, plunder, and grave misconduct filed with the Ombudsman over the transfer of P60 billion in 'excess' PhilHealth funds to the national treasury in 2024.
On January 15, 2026, a group of medical doctors and lawyers led by counsel Rodel Taton filed complaints of technical malversation, graft, plunder, and grave misconduct against Executive Secretary Ralph Recto and former PhilHealth CEO Emmanuel Ledesma Jr. with the Office of the Ombudsman. The cases arise from PhilHealth's transfer of P60 billion in 'excess' funds to the national treasury, as mandated by a provision in the 2024 General Appropriations Act requiring government-owned and -controlled corporations to remit such funds for unprogrammed appropriations.
The Department of Finance, then led by Recto, issued a circular directing PhilHealth to remit the funds in tranches. The complaint accuses them of violating the Anti-Graft and Corrupt Practices Act through 'gross inexcusable negligence,' as they failed to examine laws like the Universal Health Care Act (RA 11223), which prohibits using PhilHealth's reserve funds as a general fund.
Complainants argue the transfer caused immense injury to Filipinos, as the P60 billion could have improved health services, expanded program benefits, or reduced member contributions. They charge technical malversation, stating the officials 'willfully, intentionally and illegally' diverted funds from their original purpose.
The group also alleges plunder due to a 'persistent pattern' of transferring excess funds from GOCCs like PhilHealth to fund unprogrammed appropriations amid prevalent ghost and substandard projects, exceeding the P50 million threshold under the Anti-Plunder Act. For grave misconduct, they cite a 'clear intent to violate the law' and 'flagrant disregard of an established rule.'
PhilHealth had remitted P60 billion out of P89.9 billion before the Supreme Court issued a temporary restraining order in response to petitions from health advocates. In December 2025, the SC ordered the funds' return and declared the GAA provision and DOF circular unconstitutional. President Ferdinand Marcos Jr. had previously directed the return, incorporated into the 2026 national budget. The Save the Philippines Coalition filed a similar complaint in December 2025. Recto has maintained his innocence, citing the SC ruling that found 'no criminal liability' and affirmed his actions were in 'good faith' per Congress's mandate.