Four Supreme Court justices have affirmed that former Finance Secretary and now Executive Secretary Ralph Recto bears no criminal liability for ordering the transfer of P60 billion in unused PhilHealth funds to the National Treasury.
The justices noted that Recto acted in good faith under Special Provision 1(d) of the 2024 General Appropriations Act, which allowed government corporations to remit excess funds to finance unprogrammed appropriations.
They emphasized that Recto’s actions were ministerial, done according to statutory mandates, and without intent to divert funds illegally.
The SC earlier ruled the provision void, but clarified that following a law presumed valid in good faith does not create criminal liability.
Following the decision, the Department of Budget and Management pledged the timely and transparent release of the returned PhilHealth funds.
Source: PhilNews24 | December 7, 2025
SC RULES RECTO NOT CRIMINALLY LIABLE FOR PHILHEALTH FUND TRANSFER
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