SC voids transfer of PhilHealth funds

The Supreme Court (SC) has voided, for grave abuse of discretion, a special provision in the 2024 General Appropriations Act (GAA) that authorized the return of excess reserve funds of government-owned or controlled corporations (GOCCs) to the National Treasury to fund unprogrammed appropriations.

- By REY G. PANALIGAN

Nullified by the SC, in a decision written by Associate Justice Amy C. Lazaro-Javier, was Special Provision 1(d), Chapter XLIII of the 2024 GAA, and Department of Finance's (DOF) Circular No. 003-2024 that directed the transfer of P89.9 billion funds of the Philippine Health Insurance Corporation (PhilHealth) to the National Treasury.

With the ruling, the SC ordered the return to PhilHealth of the P60 billion already transferred to the National Treasury and permanently stopped the transfer of the remaining P29.9 billion.

Resolved by the SC were the three petitions filed by the groups of Aquilino Pimentel III, Bayan Muna Chairman Neri Colmenares, and 1Sambayan Coalition.

In a summary of the decision provided by its Office of the Spokesperson, the SC struck down Special Provision 1(d) of the 2024 GAA for being a rider-a provision not germane or related to the bill's purpose.

The SC pointed out that the Constitution requires all provisions of the GAA to be germane to its purpose to prevent surprise or fraud upon the legislature and to fairly inform the people of the bills' subject.

It explained that a provision is considered germane if it is particular, unambiguous, and appropriate.

While Special Provision 1(d) is particular in that it relates to the unprogrammed appropriations in the GAA, the SC found the provision ambiguous because it introduced the concept of a "fund balance"-a term not defined in the 2024 GAA.