For the sake of the Senate and the Philippine Red Cross, Sen. Richard Gordon should answer the allegations of impropriety against him, in his capacity as Philippine Red Cross (PRC) Chair vis-à-vis as Senator and Chair of the Blue Ribbon Committee.
The allegations, prima facie, are serious enough to warrant a separate full-blown investigation on the precise nature of the transaction between PRC and PhilHealth.
The badges of irregularities are undeniable. Firstly, Sen. Gordon, in his capacity as Blue Ribbon Committee Chair, is still investigating PhilHealth when the Memorandum of Agreement (MOA) between PRC and PhilHealth was negotiated and signed. Sen. Gordon himself signed the MOA. That is a clear conflict of interest.
Secondly, PhilHealth, as a government-owned and controlled corporation, could not agree to advance payments as it is contrary to our laws. Yet, it was included in the MOA. In fact, One Hundred Million Pesos was paid upfront upon execution of the MOA. The Bayanihan to Heal as One Act did not repeal or suspend the provisions of the State Auditing Code which prohibits payment of advances without prior approval of the President.
It cannot be argued that the basis for the advance payment agreement is the Interim Reimbursement Mechanism (IRM). Under PhilHealth Circular 2020-0007, the IRM is limited to Health Care Institutions (HCIs) directly hit by fortuitous event with clear and apparent intent to continuously operate and/or rebuild. The PRC does not fall under this qualification. Former PhilHealth executive Atty. Rodolfo del Rosario, Jr. also admitted that the MOA with the PRC is not covered by the IRM.
The apparent intent is for the MOA to be an agreement different from the IRM agreements under PhilHealth Circular 2020-0007. The MOA itself provides for a “prospective payment mechanism”. What then is the statutory basis for agreeing to advance payments?
Thirdly, Sen. Gordon’s Report, as previewed, suspiciously left out the national leadership of PhilHealth, led by its former Chair and CEO Ricardo Morales. These PhilHealth officials are the very same officials with whom the PRC negotiated the MOA. Mr. Morales and his fellow officers are now facing administrative and criminal charges recommended by Task Force PhilHealth and approved by no less than Pres. Duterte.
We should investigate whether the questionable provisions in this MOA are repeated in other agreements entered into by PhilHealth. Even as many hospitals feel the pinch of having to wait for PhilHealth reimbursements for their COVID-19-related expenses, we see some institutions favored by not just prompt but advanced payments agreed to in spite of clear statutory prohibitions.
This administration’s actions on these allegations will reflect its commitment to the rule of law. ###
(Access the handwritten version here: https://issuu.com/senatorleilam.delima/docs/dispatch_no._913)