August 28, 2024 | 12:00am
MANILA, Philippines — Former secretaries of the Department of Finance are supporting the agency’s decision to impound idle funds of state-run corporations amid the need to ensure long-term gains from other priority projects.
In a statement, seven former DOF chiefs backed Finance Secretary Ralph Recto amid continued opposition from various groups and pending the decision of the Supreme Court on the Philippine Health Insurance Corp. (PhilHealth) funds.
The statement was jointly issued by Cesar Virata, Roberto de Ocampo, Jose Pardo, Alberto Romulo, Jose Isidro Camacho, Margarito Teves and Cesar Purisima.
They said that the DOF’s move would bring substantial benefits to Filipinos.
“Mobilizing these excess funds will enable important public projects that can strengthen our economy and ensure long-term gains through more jobs, higher incomes and reduced poverty,” they said.
According to the former secretaries, the combined P200 billion idle funds from PhilHealth and the Philippine Deposit Insurance Corp. will finance crucial government projects on health, education, social services and infrastructure.
The former officials argued that it is in the public’s best interest for a portion of excess funds of government-owned or controlled corporations to be mobilized efficiently, rather than imposing additional taxes or increasing public debt.
They maintained that taxpayers are effectively paying interest on the idle and unused funds that are benefiting no one.
“Responsible public financing requires considering opportunity costs. If unused funds are left dormant, the potential benefits are lost,” they said.
“Every unused peso represents development denied for Filipinos. The cost of delaying crucial projects is a burden our people cannot afford – diminished public services, slower growth, more debt and higher deficits,” they said.
During the Senate committee on finance hearing yesterday, Recto said P30 billion out of the P89.9 billion PhilHealth funds have been reverted back to the Bureau of the Treasury.
Another P30 billion is slated to be returned on Oct.16 and the remaining P29.9 billion is scheduled in November.
Recto said the return of the fund could be earlier than scheduled depending on the cash flow and management of PhilHealth.
Nonetheless, the Finance chief said the DOF would follow whatever will be the decision of the Supreme Court or even the Congress.
“If congress passes a law telling us to stop and give back the money, we will do so. If the Supreme Court says the same thing, we will do so,” he said.
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