Ian Alfredo Magno .
SINCE Rappler got wind of – and published – Commission on Audit (COA) reports indicating huge travel expenses apparently incurred by Philhealth’s interim CEO, the cognizing public just could not help but be alarmed. And who would not be alarmed when such was perpetrated at a time when Philhealth sustained an unprecedented P8.92 billion in losses as of 2017?
No less than the chairperson of the Senate’s health committee, Sen. JV Ejercito, called for the ouster of Philhealth’s CEO. The good senator expressed: “It is the height of callousness for the interim Philhealth president to be spending that much money… I urge President Duterte to appoint a permanent Philhealth president, someone who would be more sensitive to the fact that millions of Filipinos rely on Philhealth for healthcare.”
Below are excerpts of the report, which contains the significant details:
“MANILA, Philippines – In just a year at the helm, the Philippine Health Insurance Corporation’s (Philhealth’s) interim president has already spent more than half a million pesos for her regular hotel stays and travels from her Bohol home to the Philhealth central office in Pasig and vice versa.
“Philhealth is the government’s health insurance program meant to provide affordable health care to all Filipinos. The expense comes amid a massive net income loss of Philhealth amounting to P8.92 billion, according to its 2017 unaudited financial statement posted online. Based on Philhealth’s own numbers, this is 3,446.5% higher than the restated 2016 net loss of P251.5 million.
“Since the start of her stint as Philhealth OIC president on April 10, 2017, Celestina Ma. Jude de la Serna has spent at least P627,293.04 of government funds for her accommodations, flights to and from Tagbilaran, and terminal fees, according to the Commission on Audit (COA) and documents obtained by Rappler.
“At present, De la Serna is also the concurrent Philhealth board representative for Overseas Filipino Workers since being appointed on July 1, 2016.
“In total, state auditors at PhilHealth have asked De la Serna to explain her receipt of allowances, wages, and per diem amounting to almost a million, broken down as follows:
“Weekly flights, hotel stays in Manila
“De la Serna, despite being assigned to the Philhealth central office, does not stay or rent a house in Manila. She instead stays in hotels near the office on Shaw Boulevard in Pasig City. As OIC president/CEO, she belongs to Salary Grade 30, earning a monthly salary of P143,534 and receiving other allowances and benefits such as:
“Personnel Economic Relief Allowance – P2,000/month
“Rice Allowance – P2,700/month
“Representation Allowance – P27,300/month
“Her own service/transportation
“13th month pay – P143,534/year
“Cash gift – P5,000/year
“Anniversary bonus – P12,000/year
“Grocery Allowance – P2,500/year
“Educational Assistance – P207,970.75/year
“Clothing Allowance – P5,000/year
“Christmas Assistance Package – P60,000/year
“Productivity Enhancement Incentive – P5,000/year
“Labor Management Relations Gift – P40,000/year
“Birthday gift – P10,000/year
“On top of this, she gets P40,000 per diem per board meeting and P24,000 per committee meeting.
“Rappler obtained documents showing De la Serna’s travel expenses in June, October, November, and December 2017 to and from Tagbilaran in Bohol. These expenses are, however, only partial and, as such, do not sum up to the P627,293.04 amount of travel allowances that COA is questioning.
“From May 28 to June 2, De la Serna stayed in BSA Twin Towers in Ortigas, Mandaluyong, which cost P14,500. The following week – from June 2 to June 10 – she transferred to Legend Villas in Pioneer, Mandaluyong, with her hotel bill amounting to P30,400. She checked out on June 10 and flew to Bohol, with her ticket valued at P7,091.22. All in all, for the two weeks, she spent P51,991.72. From October 16 to 31, 2017, she spent a total of P51,357. From November 5 to November 15, her flights and hotel stays cost P26,714. From December 3 to December 24, she spent P71,769.
“COA, in its Audit Observation Memorandum dated April 18, 2018 and addressed to De la Serna, maintained that her permanent/official station is in Philhealth Central Office in Pasig and asked her to explain the legal basis of her travel reimbursements.
“State auditors also cited the order De la Serna herself issued this year, Corporate Order 2018-0002, promoting austerity measures in the agency. The order says the agency could save by limiting travel expenses and other expenditures. It provides for the following:
“Minimize local travels unless said travels are very urgent and necessary to present assignment. Adopt a technique and procedures to effectively discharge the present work assignments without resorting to frequent travels.
“Except for those with foreign grants, foreign travels including per diems and accommodations shall not be allowed unless urgent in officeelated activities…
“State auditors, citing COA Circular No. 2012-003 dated October 29, 2012, alleged that the receipt of such allowances was ‘irregular’ – an expense incurred ‘without adhering to established rules, regulations, procedural guidelines, policies, principles or practices that have gained recognition in laws.’
“Irregular expenditures are incurred if funds are disbursed without conforming with prescribed usages and rules of discipline… A transaction conducted in a manner that deviates or departs from, or which does not comply with standards set is deemed irregular. A transaction which fails to follow or violates appropriate rules of procedure, is likewise irregular,’ auditors said.
“Republic Act 6713 or the Code of Conduct and Ethical Standard for Public Officials also mandates public officials’ ‘commitment to public interest.’
“Public officials and employees shall always uphold the public interest over and above personal interest. All government resources and powers of their respective offices must be employed and used efficiently, effectively, honestly and economically, particularly to avoid wastage in public funds and revenues,’ the law says…
“Per diem during virtual meetings
“COA also asked De la Serna to explain the per diem she received, a total of P152,000, from board and committee meetings done via tele/video conferencing. While such method is allowed, COA said she did not submit complete documents. COA noted that De la Serna was on sick leave from August 14 to October 26. Yet the data shows that she attended meetings via video conference while in the hospital and got paid for them.’
“In the regular board meetings on August 29 and September 14, there was no Notice of Meeting and agenda attached. COA said it was the same thing for the committee hearings and added there was missing confirmation from De la Serna that she completely and clearly heard the meeting during the video conference, as required by government rules…
“Aside from this, state auditors questioned why De la Serna received allowances, which were already disallowed by COA in previous years.”
(Lawyer Ian Alfredo T. Magno is a marketing head at Philhealth. E-mail: ianalfredom@gmail.com)
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