Manila Bulletin

PACC continues probe into alleged PhilHealth anomalies

- By GENALYN KABILING

The Presidenti­al Anti-Corruption Commission (PACC) has continued its investigat­ion into alleged anomalies in Philippine Health Insurance Corporatio­n (PhilHealth), including the alleged ₱865.9-million common stock investment scam.

PACC Commission­er Greco Belgica said they are also looking into alleged overpriced coronaviru­s testing packages as well as the alleged overpriced informatio­n and technology equipment hounding the state health corporatio­n.

The PACC investigat­ion covers around 40 PhilHealth officials, including the board of directors, executive committee, and those assigned in the regional offices, according to Belgica.

"Mayroon kaming pending investigat­ion sa PhilHealth. Bagamat natapos ang submission sa task force, tuloy ang investigat­ion sa PhilHealth (We have a pending investigat­ion on PhilHealth. Although we submitted our report to the task force, our investigat­ion on PhilHealth continues)," he said during a televised press

briefing Monday.

On the investment scheme, Belgica said they received allegation of irregulari­ties in PhilHealth investment scheme, including the alleged violation of its Charter and splitting of profits among certain officials.

Belgica said a Commission on Audit (COA) memorandum showed ₱865,927,169 of the P1-billion initial investment­s were invested in common stocks in 2016 "contrary to Section 27 (d) of Republic Act No. 10606, otherwise known as the PhilHealth Charter." The PhilHealth Charter stated that investment­s must be limited in preferred stocks only, he said.

"Nakita namin sa kanilang Charter wala silang karapatan o kapangyari­han na maglagay sa common stocks, doon lamang sa mga preferred stocks (We saw in their Charter that they have no right or power to invest in common stocks. They're only allowed to invest in preferred stocks)," Belgica said.

Common stock entitles shareholde­rs a share in the company's profits through dividends as well as allows them to elect the board of directors. Preferred shares don't usually offer voting rights but tend to have higher dividend yield.

According to Belgica, the PACC is also probing allegation­s that income in these investment­s was being divided among PhilHealth board of directors and executive committee. The company's financial statement, however, claimed such investment­s have "zero interest earnings" at the end of the investment period, he said.

On PhilHealth's benefit package for coronaviru­s testing, Belgica said the commission has started to evaluate documents related to the program as well as payment of alleged overpriced testing packages. He said clarificat­ory hearings have already been scheduled.

The anti-corruption body is also looking into PhilHealth documents on ₱2.16-billion procuremen­t of various IT equipment. Belgica said PhilHealth officers and other potential witnesses may be called to testify.

Belgica said the commission intends to gather sufficient evidence to bring any erring public servant to the bar of justice. He said they want to ensure the cases to be filed will be air-tight so it would stand in court.

"We will be filing cases to the Ombudsman very soon," he said.

President Duterte recently endorsed the filing of administra­tive and criminal complaints against former PhilHealth president Ricardo Morales and several other high ranking officials over alleged anomalies based on the initial results of the probe of an inter-agency task force. The concerned officials allegedly committed negligence in the discharge of their duties, particular­ly on some alleged irregular disburseme­nt of Interim Reimbursem­ent Mechanism given to hospitals as well as the procuremen­t of informatio­n technology equipment.

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