Morales: PhilHealth anti-fraud system ‘inadequate’

RETIRED BGen. Ricardo Morales, president and chief executive officer (CEO) of the Philippine Health Insurance Corporation (PhilHealth), conceded that the fraudulent activities at PhilHealth could not be resolved in a year.

In a virtual appearance before the 24-member Senate, the cancer-stricken Morales said that fraud at Philhealth and other similar health systems worldwide was systemic.

“I miscalculated the time required to get the IT (information technology) up and running. The internal anti-fraud mechanisms were inadequate and inappropriate to address the internal weaknesses,” said Morales who sought permission to be excused from physically attending the Senate investigation on the advice of his doctor.

“The resources necessary for the transformation of an organization of this size and mission given to it are not found within the organization,” he stressed.

The Senate, sitting as a Committee of the Whole, is investigating the alleged widespread corruption in PhilHealth.

During the first hearing on Tuesday, last week, witnesses from PhilHealth itself, including resigned anti-fraud officer Thorrsson Montes Keith, claimed alleged irregularities in PhilHealth procurements, fund disbursements, and  financial statements.

Among the questionable items cited were an unspecified number of laptops worth more than P119 million, 43 unspecified “ICT (information and communications technology) resources” worth P40 million, and 3 unnamed projects worth P98 million.

PhilHealth board member Alejandro Cabading said that the proposed 2020 budget of PhilHealth’s ICT sector was bloated by at least P734 million.

Morales, a member of the Reform the Armed Forces Movement (RAM) that helped in the ouster of former president Ferdinand Marcos, maintained that ensuring the success of PhilHealth would favorably affect the lives of 108 million Filipinos.

Source: TheManila Times