The Executive Secretary and PhilHealth’s woes

President Ferdinand Marcos, Jr. appointed House of Representatives Deputy Speaker Ralph Recto the Secretary of Finance in January 2024, replacing Benjamin Diokno.

- OSCAR P. LAGMAN, JR.

Mr. Recto was chosen for the position because of his experience and ability to build consensus and to communicate effectively with Congress, valuable assets that ensure the smooth passage and implementation of the administration’s economic agenda. He served three terms as a Senator, including as Senate President Pro Tempore and Minority Leader and multiple terms as a Representative of the 3^rd District of Batangas.

He also had previous executive experience, having served as the Socioeconomic Planning Secretary and Director-General of the National Economic and Development Authority (NEDA) during the presidency of Gloria Macapagal Arroyo. He holds a bachelor’s degree in Commerce majoring in Business Management from De La Salle University, and earned masteral units in Business Economics from the University of Asia and the Pacific, and in Public Administration from the University of the Philippines.

As if to live up to his reputation for which he was chosen as the new Secretary of Finance, Mr. Recto approved in May 2024 the transfer of P89.9 billion in excess Philippine Health Insurance Corp. (PhilHealth) funds to the national treasury. The transfer was made pursuant to a provision in the 2024 General Appropriations Act, which authorized the use of “excess” funds from Government-Owned and -Controlled Corporations (GOCCs) to finance the National Government’s unprogrammed appropriations.

The funds were transferred in tranches throughout 2024:

The remaining balance was scheduled for transfer on November 2024, but a Supreme Court Temporary Restraining Order (TRO) was issued, halting the transfer of the last P29.9 billion.