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Metro Manila (CNN Philippines, October 28) – Eight officials of the embattled Philippine Health Insurance Corporation were suspended for their alleged involvement in anomalous cash advances worth more than $ 2.7 billion.
On Wednesday, the Office of the Ombudsman placed the following PhilHealth officers and employees on a six-month preventive suspension without pay:
– Executive Vice President and Chief Operating Officer Arnel de Jesus
– Executive Vice President and Chief Operating Officer, Fund Management Industry Renato Limsiaco
– Senior Vice President, Health Finance Policy Sector Israel Francis Pargas
– Gregorio Rulloda, Vice President of the Metro Manila Regional Office
– Head of benefits administration section Imelda Trinidad De Vera-Pe
– Manager of the Metro Manila Central Branch, Lolita Tuliao
-Tax examiner Gemma Sibucao
– Fiscal Controller Lailani Padua
The order, signed by the Ombudsman, Samuel Martires, arose from a complaint filed by the National Investigation Office about the release of funds under the controversial Interim Refund Mechanism. Marathon congressional hearings led PhilHealth to suspend the plan. Meanwhile, officials denied pocketing billions of pesos through the system, setting aside allegations by a resigned anti-fraud legal officer.
NBI said the defendants committed gross misconduct, gross negligence of duty, and conduct detrimental to the best interest of the service, when they worked on releasing cash advances to 139 health care institutions in Metro Manila. NBI said the releases did not comply with Audit Commission rules and were before the PhilHealth circular went into effect. The fund also failed to treat COVID-19 patients, contrary to its proposal.
“Interested PhilHealth officials awarded private entities an unjustified benefit, a preference advantage through overt bias, blatant bad faith or gross and inexcusable negligence,” the NBI was quoted as saying by the Ombudsman.
The Ombudsman said he found “sufficient cause” to suspend the defendant pending investigation because “the evidence of guilt is solid.” The accusations against him justify his retirement from the service, and his permanence in office could compromise the investigation, said the Ombudsman.
President Rodrigo Duterte said he will not abolish PhilHealth, which is under new leadership. PhilHealth President and CEO Dante Gierran replaced Ricardo Morales, who resigned amid allegations of fraud and corruption at the corporation. Several officers have been asked to leave their posts.
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