Ombudsman orders preventive suspension of 8 PhilHealth officials over release of P2.7 billion worth of IRM funds

(Eagle News)–The Office of the Ombudsman has ordered the suspension of eight PhilHealth officials over the alleged anomalous release of P2.7 billion worth of PhilHealth funds under the Interim Reimbursement Mechanism policy.

Ordered suspended for six months without pay were Executive Vice President and Chief Operating Officer  Arnel de Jesus, PhilHealth COO for Fund Management Sector Renato Limsiaco, PhilHealth Senior Vice President Dr. Israel Paragas of Health Finance Policy Sector and five others.

The suspension order signed by Ombudsman Samuel Martires stems from the complaint for grave misconduct, gross neglect of duty and conduct prejudicial to the best interest of service filed by the National Bureau of Investigation.

The complaint was filed as a Department of Justice-led task force ordered to probe the corruption allegations in the state insurer wrapped up its probe that focused on the IRM, the the PhilHealth-proposed P2-billion ICT system which some have said was overpriced, and corporate policies.

The task force concluded the executive committee  and the board were negligent as IRM releases were rushed even if the circular implementing the scheme was not effective.

The task force said  the board issued the circular making the IRM a “special privilege” on January 30, 2020, which meant funds could be made available every time a fortuitous event would arise.

The task force also noted that the IRM was implemented without sufficient standards and guidelines, making fund releases prone to abuse, and that IRM fund releases were made despite the absence of mechanisms to monitor fund utilization and liquidation, and without taxes due being withheld.

It was President Rodrigo Duterte who gave the order for the probe, following allegations made by Thorrsson Montes Keith, former PhilHealth anti-fraud officer.

Keith had alleged a PhilHealth mafia had pocketed around P15 billion in PhilHealth funds.

The task force also recommended the filing of criminal and administrative charges against then-PhilHealth chief Ricardo Morales, Senior Vice President Jovita Aragona, Officer in Charge Calixto Gabuya Jr., Limsiaco, Paragas, De Jesus, and Division Chief Bobby Crisostomo.