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Read the article Whistleblower claims ₱15 billion stolen by PhilHealth execs in
fraud schemes written by Glee Jalea and Janine Peralta of CNN Philippines and
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Whistleblower Claims ₱15 Billion Stolen by Philhealth Execs in
Fraud Schemes

Metro Manila (CNN Philippines, August 4) — Officials of the embattled Philippine

Health Insurance Corporation have stolen some ₱15 billion from the agency using
different fraudulent schemes, a former official claimed Tuesday.
The state-run agency's former anti-fraud legal officer Thorrsson Montes Keith, who
earlier resigned due to "widespread corruption" within the office, alleged that "mafia
members" were in charge of what he calls "crime of the year" due to anomalous
transactions.
"Naniniwala po ako na ang perang winaldas at ninakaw ay humigit kumulang ₱15
billion," said Keith, testifying before the Senate Committee on the Whole.
[Translation: I believe that the total amount of money spent and pocketed amounted
to more or less ₱15 billion.]
"Naniniwala po ako na ang dahilan kung bakit hindi natatapos ang korapsyon sa
PhilHealth at naging kultura na po nito, ay ang pagtatalaga ng mga sindikato o
mafia ng kanilang kasamahan, kasabwat o kapwa sindikato sa mga matataas na
posisyon na nakakatulong sa kanilang iligal operasyon."
[Translation: I also believe that the reason why the culture of corruption continues to
proliferate in PhilHealth is due to the delegation of mafia syndicates of additional
members who also belong to top positions, which helps prolong illegal operations.]
Keith accused PhilHealth President and CEO Ricardo Morales of also instructing
him to talk to Presidential Anti-Corruption Commission Commissioner Greco
Belgica to amend a pending case involving the agency's overpriced COVID-19
testing kits.
"Inutusan ako para hilutin ang kaso sa overpriced test kits," Keith bared.
[Translation: He asked me to negotiate on the case involving overpriced test kits.]
The PhilHealth chief later tried to discredit Keith, saying the former official was
"vengeful" after being rejected for a position he coveted. Morales cited alleged
sexual harassment cases against Keith and his removal from the police force as
reasons for not hiring him as his executive assistant.
Morales added that he was doubtful about Keith's fraud allegations since in over
nine months Keith had been the anti-fraud legal officer, he failed to submit any
report on anomalies in the agency.
Keith claimed that the ₱15 billion covers the unauthorized release of interim
reimbursement mechanisms or funds allocated for "fortuitous events" such as the
pandemic, to hospitals who have not yet recorded COVID-19 cases. The amount
also included the alleged overpriced information technology systems the agency
proposed to purchase, he added.
PhilHealth board member Alejandro Cabading also pointed fingers at several
officials for allegedly manipulating operations inside PhilHealth to block corruption
probes. He named Atty. Rodolfo del Rosario, now Senior Vice President of the
Legal Sector; Corporate Secretary Jonathan Mangaoang; Dennis Mas, SVP for
Management Services Sector; and Renato Limsiaco, SVP for the Fund
Management Sector.
"Ini-intimidate 'yung mga tao sa loob na mag-i-investigate," said Cabading.
[Translation: The people tasked to investigate were being intimidated.]
Senator Ping Lacson also earlier gave the same names, except for Dr. Israel
Pargas, SVP for Health Finance Policy Sector, and tagged them as the officials
involved in the long-standing corruption allegations within the agency.
The senator alleged that these officials do not run out of "malevolent schemes to
enrich themselves of a deeply-rooted mafia syndicate" manipulating the financial
records of PhilHealth despite changes in leadership.
Del Rosario denied his involvement in any "mafia" within the agency, adding that he
will take legal action against Cabading if he cannot substantiate his accusation.
Meanwhile, Mas did not directly deny being part of a mafia but maintained that he
was not charged by the Ombudsman as claimed by Lacson. Limsiaco denied
manipulating PhilHealth's financial statements.
₱10 billion lost in fraud
Morales said even a change of leadership wouldn't change the culture of corruption
within the agency. He said over ₱10 billion was potentially lost to fraud last year. He
later added that the agency is investigating around 20,000 cases of potential fraud.
He then pointed out that no healthcare system in the world is entirely "fraud-free."
"Corruption was there in the PhilHealth organization before I came in, and may stay
if we don't put a proper system in place," the PhilHealth chief said.

Source: CNN Philippines

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