SWP says public pressure forced return of PHP 60B funds

Social Watch Philippines (SWP) said the government was compelled to return PHP 60,000,000,000 in PhilHealth funds to the state health insurer after strong public backlash.

“This is a victory for the people! Public pressure forced the government to backtrack. The move to return the funds is a cover-up after the illegal transfer and the corruption issues hounding infrastructure and flood control projects,” said SWP co-convenor Dr. Ma. Victoria Raquiza.

During oral arguments in February 2025, Associate Justice Amy Lazaro-Javier questioned why the contested funds were diverted to projects already covered in the budget.

She cited the Panay-Guimaras-Negros Island Bridge project, financed by the Export-Import Bank of Korea with PHP 174,490,000,000, as well as right-of-way payments and road maintenance, both already funded under the General Appropriations Act (GAA).

“This shows the dangerous precedent when funds meant for health and social protection are siphoned off for unrelated and already financed infrastructure projects in the programmed portion of the national budget,” Raquiza said.

SWP argued that returning the money does not erase the fact that last year’s transfer violated both the law and the Constitution.

The group stressed that under the Universal Health Care (UHC) Law, PhilHealth funds can only be used by the agency itself.

They added that invoking the 2024 GAA to authorize the transfer was illegal since the GAA cannot supersede the UHC Law.

Raquiza said the petition pending before the Supreme Court is critical, as it addresses not just the return of funds but the larger issue of protecting institutional autonomy and social services.

“An immediate ruling from the Supreme Court will help prevent future diversions of funds from state-owned agencies like PhilHealth. Without such a ruling, public funds remain at risk of being transferred to projects outside their mandated purpose, with no accountability for those responsible for the illegal allocations,” she said.

SWP reiterated its call for transparency and accountability in government spending and urged strict compliance with constitutional safeguards in handling taxpayer money.

The group also pushed for #OpenBicam, highlighting that the provision enabling the transfer was inserted during closed-door bicameral sessions.