The Philippine Health Insurance Corp. (PhilHealth) is scheduled to complete the remittance of the remaining dormant funds by November of this year, according to Secretary Ralph Recto of the Department of Finance (DOF).
While the DOF’s order to remit the sleeping funds of PhilHealth has been met with strong criticism from various sectors and stakeholders, former secretaries of the agency have expressed their support on the mobilization of excess funds of government-owned and -controlled corporations (GOCCs).
To recall, of the P89.9 billion in idle funds, an initial P20 billion was remitted to the National Treasury in May, while another P10 billion was remitted just last week.
“We expect to receive another P30 billion on October 16 (and) another P29.9 billion in November of 2024,” Recto said during the senate subcommittee’s briefing on the proposed 2025 budget of the Department of Finance (DOF) and its attached agencies yesterday.
“It could also be earlier, that would depend on the cash flow or cash management of PhilHealth,” he added.
Former finance chiefs Cesar E. A. Virata, Roberto De Ocampo, Jose T. Pardo, Alberto G. Romulo, Jose Isidro N. Camacho, Margarito Bustaliño Teves and Cesar V. Purisima in a statement yesterday said they “ fully understand and support the DOF’s exercise of its authority to effectively utilize the excess funds of GOCCs to finance crucial government projects in areas like health, education, social services and infrastructure.
“We believe this move will bring substantial benefits to the Filipino people. Mobilizing these excess funds will enable important public projects that can strengthen our economy and ensure long-term gains through more jobs, higher incomes, and reduced poverty,” they added.
“In our view, it is in the public’s best interest for a portion of excess GOCC funds to be mobilized efficiently, rather than imposing additional taxes or increasing public debt that would burden future generations. The taxpayers are effectively paying interest on these idle, unused funds that are benefiting no one,” the former cabinet officials said.
They also pointed out that the DOF, under the current leadership, has assured that it will only access a part of GOCC excess funds, while maintaining safeguards to ensure GOCCs retain adequate resources well beyond prudent levels, and that it will abide by whatever decision the Supreme Court will make on the case pending before it.
“Responsible public financing requires considering opportunity costs. If unused funds are left dormant, the potential benefits are lost. Every unused peso represents development denied for Filipinos,” they said
“The cost of delaying crucial projects is a burden our people cannot afford – diminished public services, slower growth, more debt and higher deficits. No responsible DOF secretary would allow such an outcome,” they added.
