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Justice Secretary Menardo Guevarra said the National Bureau of Investigation, with the backing of the Department of Justice (DOJ), filed a series of criminal complaints with the Office of the Ombudsman on Friday against nine former and current Philippine officials. Health Insurance Corp. (PhilHealth) allegedly implicated in the misuse of the controversial Interim Reimbursement Mechanism (IRM).
Respondents named were former PhilHealth President and CEO Ricardo Morales, current Executive Vice President and Chief Operating Officer Arnel de Jesus, Senior Vice Presidents Renato Limsiaco Jr., and Israel Francis Pargas, PhilHealth Regional Office Vice President Capital Region National (NCR) Gregorio Rulloda, Lolita Tuliao, manager of the central branch of the PhilHealth regional office of NCR, and other executives identified as Imelda Trinidad de Vera-Pe, Gemma Sibucao and Lailani Padua.
Morales’ successor, Dante Gierran, ordered the massive resignation of top PhilHealth officials, in compliance with a board resolution issued last year and President Duterte’s order to “clean up” PhilHealth.
Guevarra said that the complaints filed were for violation of Sections 3 (e) and 3 (i) of the Corrupt Practices and Anti-bribery Law, embezzlement of public funds or property, and violations of Sections 251, 255 and 272 of the New Internal Income. And Section 4 of Republic Law No. 1051 regarding the questionable granting of advances to various health care institutions in the NCR pursuant to the IRM.
RA 1051 requires all government agencies, corporations, and local governments to deduct and withhold taxes from payments to private individuals or businesses.
Some of the $ 30 billion in MRI funds were reportedly given to hospitals that had not treated COVID-19 patients for whom the emergency measure was intended.
“More complaints will be filed in the coming days / weeks against PhilHealth staff and their cohorts who have made mistakes,” Guevarra said.
Guevarra headed the government’s inter-agency PhilHealth task force, which previously submitted an initial report to the president on alleged corruption and other wrongdoing at the state health insurance company.
According to Cesar Bacani, the director of NBI NCR, investigators found a basis to hold Morales and the other officials accountable for embezzlement and corruption after they released funds before the IRM circular took effect.
“What we presented was endorsed by the DOJ,” said Bacani, who filed the complaint with the Ombudsman’s Office on Friday afternoon.
NBI Officer-in-Charge, Eric Distor, previously formed the NBI’s own PhilHealth Task Force to investigate allegations, audit PhilHealth finances, and conduct lifestyle checks on its officers and employees in accordance with the directive of the NBI. Guevarra.
The task force is comprised of agents and investigators from the NBI’s Anti-Theft Division, Anti-Fraud Division, Special Operations Group, Special Action Unit, Cybercrime Division and Digital Forensic Laboratory.
The alleged corruption at PhilHealth was exposed by former anti-fraud legal officer Thorsson Montes Keith, who said that the health insurer’s executive committee were members of a “mafia” or “union” that allegedly took 15 billion pesos from the state corporation.
Morales resigned as president of PhilHealth on August 26. Two other senior executives from the agency also submitted their resignations that month: Senior Vice President of the Legal Sector Rodolfo del Rosario Jr. and Vice President of Operations Augustus de Villa.
According to PhilHealth spokesperson Rey Baleña, officials from the state insurer holding salary grade 26 and above will submit their courtesy waivers.
‘A new beginning’
Gierran issued the implementing memorandum for Board Resolution No. 2457 on September 30 for compliance on or before October 5.
“This is in compliance with President Duterte’s directive to cleanse the corporation of dishonest people, thus giving PhilHealth a fresh start to stay true to its mandate,” Baleña said.
PhilHealth currently has 66 employees with Salary Grade 26 or higher, but Baleña said that a considerable number of them only occupy their positions in an interim capacity.
In August, Morales told senators that he did not implement the board resolution ordering the massive resignation of senior officials because “in my opinion, it would be too damaging to the corporation.”
Gierran’s order came in the wake of Duterte’s threat to ask Congress to abolish PhilHealth due to persistent accusations of fraud and corruption.
Malacañang endorses Gierran’s mass resignation directive as the “fastest way” to reorganize the state health insurer, according to presidential spokesman Harry Roque.
Roque noted that Gierran, a former head of the NBI, was given only until the end of 2020 to rid PhilHealth of corruption.
Atty. Gierran knows he doesn’t have much time. That’s why I think it was important for him to ask all the top executives to present their courtesy resignation, because that’s the fastest way he can reorganize, ”Roque said Friday.
“We support this Atty initiative. They spin. We are confident that you will have very good information to guide you on whose resignation to accept … I also hope that you will be guided by the findings of the Senate, as well as the findings of Task Force PhilHealth, “he said in an interview. with CNN Philippines on Friday.
Last month, the president approved Task Force PhilHealth’s recommendation to bring administrative and criminal cases against Morales and several other senior PhilHealth officials.
On Monday night, Duterte said he will ask Congress to repeal PhilHealth in a “surgical move” to crack down on corruption in the state corporation.
He proposed replacing PhilHealth with a new, simpler agency rather than privatizing it, saying he has no funds left.
State obligation
Roque opposes the privatization of the state health insurer, as it would be “antithetical and inconsistent with the concept of universal health care.”
“Universal health care is distinguished from private health insurance because it is the fulfillment of a state obligation to promote the right to health. It is a commitment that although the members will have to pay their dues, in reality, the dues will not be enough and the balance, of course, will be paid by the government, ”said Roque.
He recalled that he proposed the abolition of PhilHealth and its replacement by a National Health Service when he was a member of the House of Representatives.
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