Duterte says Morales, other PhilHealth officials to face trial over agency’s fund mess

September 15, 2020

President Rodrigo Duterte said on Monday some Philippine Health Insurance Corp. officials, including its former president and CEO Ricardo Morales, have to face criminal and administrative charges for the alleged massive corruption in the state health insurer.

Duterte made the statement as he read portion of the recommendation made by the multi-agency task force led by the Department of Justice regarding its investigation on the alleged anomalies.

Health Secretary Francisco Duque III, the ex-officio chairman of PhilHealth, however, was apparently exonerated as Duterte, who read the task force's recommendation during the taped televised meeting on Monday night, did not mention anything about the Health chief, who was also present in the meeting.

"The totality of the evidence presented before the task force supports the reasonable conclusion that wrongful acts or omissions on the part of certain key corporate officers of the PhilHealth has been committed...the negligence exhibited by certain officers of the PhilHealth Executive Committee gives rise to both administrative and criminal liability," Duterte said, reading from the report.

Duterte said among the law that the PhilHealth executives allegedly violated were Republic Act No.3019 or the Anti-Graft and Corrupt Practices Act; the Revised Penal Code for alleged malversation of public funds or property; the Civil Service Rule for illegal use of public fund and property, gross misconduct, and gross neglect of duty; the National Internal revenue Code in connection with their failure to withhold taxes on Interim Reimbursement Mechanism releases.

Among the other PhilHealth officials who were recommended to be charged include Jovita Aragona, senior vice president for information management sector; Calixto Gabuya Jr, acting senior manager of the information technology and management department; Renato Limsiaco Jr, senior vice president for the fund management sector; and Israel Francis Pargas, senior vice president for the health finance policy sector.

Duterte said those recommended to be charged will have to face trial.

"I'm sorry for them, but they will have to undergo trial, although they can always prove their guilt beyond reasonable doubt. The presumption of innocence is still attached," he said.

The Senate Committee of the Whole, which conducted its own probe in PhilHealth fund mess, also recommended the filing of criminal and administrative charges against similar officials, including Duque. Celerina Monte/DMS