The Philippine Health Insurance Corporation (PhilHealth) is grappling with unsettled disallowances amounting to over ₱7.8 billion, according to a recent report by the Commission on Audit (COA). These disallowances were highlighted in a detailed 51-page document, which disclosed an extensive list of financial discrepancies noted until the end of 2022.
Key findings from the COA illustrate that a significant portion of the disallowed funds pertains to unauthorized cash gifts, as well as Christmas and birthday packages, that had been issued without a legal basis. Additionally, the report brings to light exorbitant bonuses and allowances that were paid to PhilHealth employees, coupled with excess payments made to suppliers and contractors.
A closer look into the specifics reveals that the highest share of disallowances, which stands at ₱1.9 billion, is attributed to PhilHealth’s head office. Following closely are the Central Luzon and National Capital Region offices, holding over ₱610 million and around ₱604 million in disallowances respectively.
A “disallowance,” in the auditing parlance, refers to the rejection of a particular expense or transaction post the audit proceedings. Subsequent to a disallowance notice, the liable individuals are mandated to repay the total disallowed amount, either in part or full.
Remarkably, some of the unsettled disallowances date back to more than a decade, with initial notices having been served as early as 2008. Despite the substantial time lapse, these disallowances remain unresolved due to a series of appeals lodged by the respondents, advancing to the Supreme Court in pursuit of getting the disallowance revoked.
