COA scores PhilHealth over P14.97-B advances to hospitals under IRM

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PhilHealth says 95% of these funds have already been liquidated. But COA says the agency 'could have at least exercised the required diligence' and followed the rules set by law.

That provision of PD 1445 states that “advance payment for services not yet rendered or for supplies and materials not yet delivered under any contract” should have prior approval of the president.

Without this proof, continued COA, “the disbursements made under the IRM scheme were without legal authority and could be considered illegal expenditures.”In its reply to COA, PhilHealth said the recipient hospitals have liquidated 95% of the IRM funds, and the IRM itself has already been suspended. Because PhilHealth failed to withhold appropriate income taxes and remit them on time, COA said the agency did not follow provisions of the National Internal Revenue Code. Concerned officials may face “possible prosecution and imposition of penalties, interest, and criminal liabilities” pursuant to the NIRC, added COA.

 

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