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The Supreme Court has unanimously affirmed the notices of disallowance issued by the Commission on Audit on Philhealth’s grant of new allowances for its employees amounting to P43.8 million without the approval of the President in 2010.
“As the manager of the State’s National Health Insurance Fund, PHIC must ensure the availability of funds and must carry out its fiduciary responsibility through effective stewardship, proper management, and maintenance of reserves,” the SC ruled. It particularly cited Article IV, Section 16 of R.A. No. 7875 which states: “The Corporation shall have the following powers and functions:… n) to organize its office, fix the compensation of and appoint personnel as may be deemed necessary and upon the recommendation of the president of the Corporation.”
But the SC found Philhealth’s arguments “untenable”, saying the the issue on Philhealth’s fiscal independence has long been settled in the case of Philhealth v. COA where the Court ruled in 2016 that R.A. 7875 does not give the agency unbridled authority to fix the compensation of its employees and unilaterally provide allowances.
Indonesia Berita Terbaru, Indonesia Berita utama
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