No crime, no loss, no confusion — so why is Recto still being charged?

PoliticsOpinion
16 Jan 2026 • 12:02 AM MYT
The Manila Times
The Manila Times

One of the longest-running English broadsheets in the Philippines

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LAST month, a coalition reportedly allied with the Duterte camp filed a plunder and technical malversation complaint against Executive Secretary Ralph Recto and former Philippine Health Insurance Corp. (PhilHealth) president Emmanuel Ledesma Jr. over the transfer of P60 billion in PhilHealth excess reserve funds to the national treasury.

In their 15-page complaint-affidavit filed before the Office of the Ombudsman, the Save the Philippines Coalition sought the dismissal of Recto and Ledesma from government service for allegedly committing technical malversation under Article 220 of the Revised Penal Code and violating Republic Act (RA) 3019, or the Anti-Graft and Corrupt Practices Act, and RA 7080, or the Anti-Plunder Act, as well as grave misconduct under RA 6713.

The coalition accused Recto and Ledesma of “knowingly, willfully, maliciously, with evident bad faith, dishonesty and grave misconduct, unlawfully, illegally and intentionally transferred” the P60 billion in PhilHealth reserve funds to the national treasury.

But then, if this were a real criminal case, the elements would be clear. There would be a violated law, a damaged institution and a public officer who acted with bad faith or personal gain. None of these exist in the case now being filed against Recto and his co-accused.

The transfer of PhilHealth funds was done pursuant to the 2024 General Appropriations Act. That law was passed by Congress and was valid at the time it was implemented. Recto did not invent a mechanism. He did not act unilaterally. He did not exercise personal discretion. He followed a command written into law.

That point alone should have ended the discussion. But the Supreme Court went further.

In multiple concurring opinions, the court made one thing unmistakably clear: No criminal liability can attach to a public official who implements a law presumed valid at the time of execution. The justices explained that even if a provision is later declared unconstitutional, those who enforced it in good faith cannot be retroactively criminalized.

That principle is basic to any functioning legal system. Laws guide behavior. People cannot be punished later for following rules that were binding when the act was done. To allow otherwise would turn governance into a guessing game, where officials must predict how future courts might rule and hesitate every time Congress acts.

Yet despite this clarity, a criminal complaint is being filed again.

The timing is impossible to ignore. The filing comes after the Supreme Court has spoken. It comes after Congress has acted. And it comes after the very funds at issue have already been returned and strengthened under the 2026 national budget.

Today, PhilHealth is not weaker. It is stronger. Its budget stands at nearly P129.8 billion, including the P60 billion that was returned pursuant to the president’s directive and consistent with the court’s ruling. Benefits have expanded. Preventive care has been reinforced. Out-of-pocket costs for Filipino families have been reduced.

There is no missing money. There is no permanent loss. There is no unlawful diversion.

In law, when supervening events remove the factual or legal basis of a case, the issue becomes moot and academic. Courts do not decide dead controversies. Prosecutors are not meant to pursue cases where there is no longer a live dispute.

So, what exactly is being prosecuted?

When a case persists despite the absence of harm, violation or unresolved legal question, it stops being about accountability. It becomes a case in search of a crime.

That is dangerous. Not just for Recto, but for governance itself.

If following Congress can later become a basis for prosecution, no Cabinet official is safe. Every decision becomes a liability. Every act of compliance becomes a potential criminal exposure. That is how government paralysis begins — not through corruption, but through fear.

Accountability matters. But accountability without law, fact or timing is something else entirely.

And that is the real issue the public should be asking about today.