Plunder raps over diverted state funds politically motivated – Recto

By Ruth Abbey Gita-Carlos, Philippine News Agency

‘HARASSMENT’. Executive Secretary Ralph Recto on Tuesday (May 26, 2026) rejects as politically motivated the plunder and malversation complaint filed against him over the transfer of reserve funds from state-run firms to the national treasury. Recto maintained that the transfer of unused PhilHealth and Philippine Deposit Insurance Corp. funds was authorized under the 2024 General Appropriations Act and implemented in good faith. (Ralph Recto/facebook)

MANILA – Executive Secretary Ralph Recto on Tuesday denounced as politically motivated the filing of what he described as a “harassment case” against him in connection with the transfer of reserve funds from state-run firms to the national treasury.

Recto said the opposition could be behind the plunder and malversation complaint filed against him over the transfer of unused funds of the Philippine Health Insurance Corporation (PhilHealth) amounting to PHP60 billion and the Philippine Deposit Insurance Corp. (PDIC) worth PHP107 billion to the state’s coffers.

“It’s a harassment and a nuisance,” he told reporters in Pasay City.

“Maraming question mark. Ang nagsasabi na maaaring allegedly kasama na dyan yung possibly opposition o halimbawa si Lean Leviste, allegedly (There are many question marks. Some are saying the opposition or, for example, Lean Leviste may allegedly be involved),” he added.

The complaint, filed by Dr. Tony Leachon on Monday, alleged that Recto violated the Constitution and betrayed the people’s right to health by diverting funds from state-owned firms to the national treasury.

Recto, a former Finance chief who ordered the diversion of unused funds, maintained that the transfer was authorized under the 2024 General Appropriations Act.

“Hindi ginawa lang iyan ng Department of Finance. Nasa batas iyan. Inutusan kami ng Kongreso (The Department of Finance did not do this on its own. It is in the law. Congress ordered us),” he said.

Recto said he consulted several government agencies and oversight bodies before ordering the fund transfer.

“Tinanong ko yung iba-ibang government agencies kung nararapat ba ito, dapat bang sundan ito (I asked various government agencies whether it was proper and whether it should be followed),” he said.

“Nung sinabi sa amin dapat sundan ko dahil ako noong araw, mambababatas din ako kaya naiintindihan ko yan, ang sinabi sa akin na dapat ipatupad, kaya natin pinatupad (When we were told it should be followed – since I was also a lawmaker and I understand it – we implemented it when we were told do so),” Recto added.

On Monday, Recto said he merely implemented the law in good faith, citing portions of separate opinions issued by Supreme Court justices.

To date, the PHP60 billion has already been returned to the PhilHealth coffers.

Recto also denied allegations that he personally benefited from the transferred funds, stressing that the complaint was part of a broader effort to divert public attention from other controversies.

Misleading

Meanwhile, several House leaders accused Leachon of politicizing a budget issue and misleading the public about how government reserve funds work.

In a statement, Deputy Speaker Janette Garin of Iloilo said Leachon was attacking officials for carrying out a mechanism that was authorized by Congress itself.

“Delikado ang kaunting kaalaman kapag ginagamit para magkunwaring eksperto sa budget process (A smattering of knowledge is dangerous when used to feign expertise on the budget process),” Garin said.

“Secretary Ralph Recto merely implemented what was clearly authorized under the General Appropriations Act. Kung talagang naniniwala si Dr. Leachon na ilegal ito, bakit hindi niya kasuhan ang buong Kongreso at Senado na nagpasa ng batas (If Dr. Leachon really believes that it is illegal, why didn’t he sue the whole Congress and the Senate that passed the law)?”

Garin also suggested that forces may be encouraging Leachon to repeatedly attack Recto.

“I challenge Dr. Leachon to reveal who is really pushing him to keep throwing reckless accusations against the Executive Secretary,” she said.

In a separate statement, Assistant Majority Leader Zia Alonto Adiong of Lanao del Sur said Leachon seemed more interested in creating controversy than discussing real accountability issues.

“Parang pilit na pilit niyang ilihis ang usapan mula sa mga totoong issue ng pananagutan (It seemed that he is forcefully diverting the discussion on the real issue on accountability,” Adiong said.

“If accountability is truly his advocacy, then he should apply the same standard to everyone and not only when it fits a political narrative.”

House Committee on Higher and Technical Education chair Jude Acidre, in another statement, said Leachon was displaying a poor understanding of how reserve funds actually work.

“Kulang sa kaalaman sa proseso pero sobra sa pag-iingay (He lacks an understanding on the process but excessively loud),” Acidre said.

“He keeps repeating that the funds were ‘unused,’ when that is precisely why they are called reserve funds. They are not meant to be spent recklessly or automatically exhausted.”

Acidre said Leachon was misleading the public by portraying reserve funds as abandoned money that government officials simply grabbed for themselves.

“That is a gross distortion of how fiscal management works,” he said.

Deputy Speaker Paolo Ortega V of La Union, meanwhile, accused Leachon of using the issue for politics.

“Naiintindihan naman natin na natalo noong nakaraang eleksyon ang kanyang anak at ilang kamag-anak. Pero huwag naman sanang gawing political weapon ang mga reklamong kulang sa basehan (We understand that his child and several relatives lost in the last elections. But he should not use baseless accusations as a political weapon),” Ortega said.

“Ang problema rito, pinagmumukhang public advocacy ang malinaw na pamumulitika (The problem here is that he is trying to make clear political maneuverings look like public advocacy),” he added.