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Health reform advocate Tony Leachon files a complaint at the Office of the Ombudsman over the transfer of about P60 billion in PhilHealth reserve funds to the National Treasury on May 25, 2026.
Leachon via FB
MANILA, Philippines — Health reform advocate and physician Tony Leachon has asked the Office of the Ombudsman to file plunder and malversation charges against Executive Secretary Ralph Recto and several other Cabinet officials over the transfer of about P60 billion in Philippine Health Insurance Corp. funds to the National Treasury.
Leachon filed the complaint on Monday, May 25, over what he described as the illegal diversion of PhilHealth reserve funds despite restrictions under the Universal Health Care Act.
The complaint seeks to hold the officials liable for technical malversation under the Revised Penal Code, violations of the Anti-Graft and Corrupt Practices Act and violations of the Anti-Plunder Law.
Aside from Recto, respondents include Acting Finance Secretary Frederick Go, Acting Budget Secretary Rolando Toledo, Health Secretary Teodoro Herbosa, and current and former PhilHealth heads Edwin Mercado and Emmanuel Ledesma Jr.
Philippine Deposit Insurance Corp. President Roberto Tan was also named in connection with similar fund transfers involving his agency.
Leachon, a former independent director of PhilHealth, alleged that the respondents orchestrated the diversion of funds even though PhilHealth reserves are supposed to be used exclusively for members’ benefits.
He argued that PhilHealth reserves are trust funds and cannot be reallocated for other government spending through executive circulars or budgetary provisions.
"These warnings were public, repeated, and widely disseminated. Despite such warnings and widespread public concern, Respondents proceeded with the transfer, demonstrating conscious disregard of statutory limitations and foreseeable injury to public healthcare financing," Leachon said.
The Supreme Court last year ordered the government to return P60 billion in PhilHealth excess funds from the National Treasury.
The case stemmed from the Department of Finance's earlier order transferring PhilHealth excess funds to the National Treasury.
