Home / News / Ombudsman suspends PhilHealth officers in ₱2.7-B questionable cash advances

Ombudsman suspends PhilHealth officers in ₱2.7-B questionable cash advances

(FILE PHOTO)

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Metro Manila (CNN Philippines, October 28) — Eight officers of the embattled Philippine Health Insurance Corporation were suspended for their alleged involvement in anomalous cash advances worth over ₱2.7 billion.

The Office of the Ombudsman on Wednesday placed the following PhilHealth officials and employees under a six-month preventive suspension without pay:

– Executive Vice President and Chief Operating Officer Arnel de Jesus

– EVP and COO for fund management sector Renato Limsiaco

– Senior Vice President for health finance policy sector Israel Francis Pargas

– Metro Manila regional office vice president Gregorio Rulloda

– Benefits administration section head Imelda Trinidad De Vera-Pe

– Metro Manila central branch manager Lolita Tuliao

-Fiscal examiner Gemma Sibucao

– Fiscal controller Lailani Padua

The order, signed by Ombudsman Samuel Martires, stemmed from a complaint filed by the National Bureau of Investigation over the release of funds under the controversial Interim Reimbursement Mechanism. Marathon congressional hearings prompted PhilHealth to suspend the scheme. Meanwhile, officials denied pocketing billions of pesos through the system, brushing aside allegations by a resigned anti-fraud legal officer.

NBI said the accused committed grave misconduct, gross neglect of duty, and conduct prejudicial to the best interest of the service, when they worked on the release of cash advances to 139 healthcare institutions in Metro Manila. NBI said the releases did not comply with Commission on Audit rules, and were before the PhilHealth circular took effect. The fund also did not cater to COVID-19 patients, contrary to its purpose.

“PhilHealth officials concerned accorded private entity/ies an unwarranted benefit, advantage of preference through manifest partiality, evident bad faith or gross inexcusable negligence,” the NBI said as quoted by the Ombudsman.

The Ombudsman said it found “sufficient cause” to suspend the accused pending investigation because “the evidence of guilt is strong.” The accusations against them warrant the removal from service, and their continued stay in office may compromise the probe, the Ombudsman said.

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 in the corporation. A number of officers have been asked to leave their posts.

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