PhilHealth Region 8 told:Settle P2M unpaid office rent

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THE Commission on Audit has granted a P2.07-million claim against the Philippine Health Insurance Corporation (PhilHealth) Regional Office No. 8 for unpaid office rent for January to July 2020.

In its en banc decision, the COA held that PhilHealth must pay the obligation despite the absence of a written contract as the agency does not deny that it has been using the commercial building as its regional office for Eastern Visayas.

Based on the claim dated July 1, 2021, the building located at 161 P. Burgos Street, Tacloban City is owned by claimant Hugh Trevor Realty and has a monthly rental of P295,768.53.

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The claimant said no contract was drawn for 2020 because PhilHealth Region 8 had planned on moving its offices to another location. However, this did not push through after the PhilHealth president and chief executive officer struck down plans for transfer of location by any PhilHealth satellite office due to the COVID-19 pandemic.

In its answer to Hugh Trevor Realty’s petition, PhilHealth Region 8 admitted it is still occupying the office space even in the absence of a written contract. It also requested that COA allow the release of payment for rental of office space to satisfy the claim.

From its own review of the transactions between the claimant and PhilHealth, the audit team leader and the Regional Supervising Auditor noted that the PhilHealth RO 8 has been occupying the same building since 2018 and the owner has not raised the rent from the original amount.

“PhilHealth RO No. 8 cannot evade payment of its rents and unjustly enrich itself by using the petitioner’s property for free. PhilHealth RO NO. 8 admitted that, indeed, it occupied and utilized the property as its regional office for Eastern Visayas operations,” COA said.

It added that rental payments in the agency’s budget have been obligated and recorded as accrued payables, which means money is available for release.

“Petitioner is entitled to a reasonable compensation based on the principle of quantum meruit since it is clear that PhilHealth RO No. 8 benefitted from utilizing the office space. Under the principle of quantum meruit, a contractor is allowed to recover the reasonable value of services rendered despite the lack of a written contract,” the Commission said.

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