'It is only proper if not imperative, for PhilHealth to be more circumspect in utilizing the funds for the salaries and allowances of its employees,' says the Supreme Court
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In a 15-page ruling penned by Associate Justice Filomena Singh, the Court upheld the notices of disallowances issued by the Commission on Audit over PhilHealth granting new allowances for employees in 2010. The allowances totaled P43.8 million and were given without the approval of the President. In the ruling, the High Court said PhilHealth “must ensure the availability of funds and must carry out its fiduciary responsibility through effective stewardship, proper management, and maintenance of reserves.”
It further argued that this privilege of being allowed to set its own rules on pay and compensation was backed by former President Gloria Macapagal-Arroyo in two documents: For PhilHealth, these two letters are proof that even Arroyo recognized the state insurer’s fiscal independence.However, the Court views these arguments as “untenable,” noting that the agency’s independence has been settled in the
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