House Appro chair backs calls to reallocate dormant GOCC funds

A lawmaker on Tuesday backed proposals to allocate unused government-owned and controlled corporations (GOCC) funds to programs related to social services and infrastructure projects.

Ako Bicol Party-list Representative Zaldy Co, chairperson of the House Appropriations Committee, rallied behind the proposal of the Department of Finance (DOF) to redirect dormant GOCC funds to other projects' budgets.  

"This initiative will re-channel billions of dormant funds to help millions of Filipinos enjoy better healthcare and social services, and bolster economic activity by investing more in social services and infrastructure projects at no extra cost to government," said Co in a press statement.

The DOF said the 2024 General Appropriations Act allows the move, citing the P500-billion reserve of the Philippine Health Insurance Corporation (PhilHealth) for the redirection. 

"These are not derived from member contributions but are, in fact, unutilized funds provided by the national government. It is essential to understand that these funds are distinct and separate from any contributions made by PhilHealth members and are meant to be used for the country's development," said Co.

"Congress has done its part in its exercise of oversight functions on the national budget, with respect to PhilHealth subsidies," he said. 

Among the projects that may benefit from the reallocation of the GOCC funds are the Metro Manila Subway Project and the Teacher Effectiveness and Competencies Enhancement Project, he added.

'Health funds for health'

Senator JV Ejercito, however, expressed his concerns regarding the use of GOCC funds for other public government programs.

“Bagaman naiintindihan natin na nangangailangan ng pondo ang ibang programa ng gobyerno [Even though we understand that other government programs also need funds], we believe that the fulfillment of the goals and objectives of the Universal Healthcare Law should be accorded priority,” Ejercito said.

“Ang pondo para sa kalusugan ay dapat gamitin para sa kalusugan. Unahin po sana natin ang pagpapataas ng kalidad ng benepisyo at pagpapababa ng binabayarang kontribusyon ng ating mga mamamayan,” he added.

(Funds for health should be used for health. We should prioritize improving the quality of the benefits and lowering the required contribution paid by our citizens)

Earlier, independent health advocate Dr. Tony Leachon claimed that P89.9 billion in PhilHealth funds were used for unprogrammed funds or pet projects instead of high premium payments or hospitalization benefits.

Former senator Ping Lacson expressed his disapproval, saying that the diversion of funds violates the Universal Healthcare Act and can create “serious security problems.”

The Department of Finance defended the use of “unused and idle funds of government corporations” and said that it was “more prudent” than borrowing or imposing taxes.

“In the case of PhilHealth, unused government subsidies are not part of its reserve funds, nor income that is being restricted by the Universal Health Care Act to be used by the national government as a general fund,” the DOF said.

“Moreover, the return of unused and excess funds was approved by the PhilHealth and PDIC’s [Philippine Deposit Insurance Corporation] respective boards,” it added. 

They also added that utilizing PhilHealth and other GOCCs' funds were what allowed frontliners' COVID-19 service allowances. — Sundy Locus and Jiselle Anne C. Casucian/BM, GMA Integrated News