Recto defends transfer of excess idle funds back to Treasury

Amid criticisms on the government’s move to transfer idle fund of government corporations such as those of Philippine Health Insurance Corp.’s back to the state coffers, Finance Secretary Ralph Recto on Tuesday emphasized the need to mobilize unused funds to bankroll priority health, education, and infrastructure programs for the benefit of 115 million Filipinos.

In a statement, Recto explained the rationale behind tapping the excess unused funds of PhilHealth and other government-owned and controlled corporations (GOCCs).

The Finance chief compared the mobilization of unused funds to idle police who were at a police station when they were needed in areas rife with crime.

“Halimbawa, maraming krimen sa kalsada at merong mga pulis ang natutulog, halimbawa lang sa general headquarters; hindi ho ba dapat i-deploy mo ‘yung mga pulis na ‘yan na natutulog lang, halimbawa doon sa lansangan kung saan may krimen (For example, there are a lot of crimes happening on the streets but there are police officers are just sleeping, just for example at the general headquarters; these police officers should be deployed to those streets where crimes are rampant),” Recto said.

“So, ihahalintulad ko rin ito ‘sa pondo ng gobyerno na natutulog lang na dapat pakinabangan sa dami ng pangangailangan na 115 million na Pilipino (I am comparing this to the government’s fund which should be used to benefit the needs of 115 million Filipinos),” he said.

The Philippine Medical Association, Senator Aquilino "Koko" Pimentel III, former Finance undersecretary Cielo Magno, Dr. Ma. Dominga Padilla, and the Sentro ng mga Nagkakaisa at Progresibong Manggagawa, among others filed a petition with the Supreme Court blocking the transfer of P89.9 billion in excess funds of PhilHealth to the Treasury to fund unprogrammed appropriations this year.

Last week, the high court ordered several senior government officials to submit their comments to a petition blocking the transfer of excess funds of PhilHealth.

The Finance Department has been defending the diversion of GOCCs’ idle funds, saying it is has legal basis and was only acting on orders of Congress.

The DOF also it consulted the Governance Commission for GOCCs (GCG), the Office of the Government Corporate Counsel (OGCC), and the Commission on Audit (COA) which all said such moves were in line with the law.

Recto, meanwhile, reiterated that idle funds should be used for “sa edukasyon, sa kalusugan, sa infrastraktura, sa ayuda na dapat ibigay sa mga mamamayan natin (education, health, infrastructure, cash aid which should benefit our citizens).”

The Finance chief added that he acknowledges the viewpoints of sectors that are concerned about the use of PhilHealth’s unused government subsidy, but pointed out that the state has the responsibility to manage its resources properly so that it doesn’t resort to more borrowings.

Recto said that the government currently “spends P15.8 billion a day, collects only P11.8 billion a day in revenues, and thus has to borrow P4.0 billion a day to cover its programs and projects.”

“Nakikinig naman tayo sa lahat ng nagsasalita. Nakikinig tayo sa mga medical practitioners natin. Nakikinig tayo sa mga kumukontra. Pinakikinggan natin ang Kongreso. Lahat pinakikinggan natin dahil ito ay ayon sa ating demokrasya (We listen to everyone who speaks. We listen to medical practitioners. We listen to those who oppose. We listen to the Congress. We listen to everyone because this is part of our democracy),” he said. — RSJ, GMA Integrated News