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The Philippine Deposit Insurance coverage Company remitted P107 billion in January 2025 in compliance with a particular provision within the 2024 Common Appropriations Act that additionally licensed the switch of PhilHealth’s P60 billion in ‘extra funds’
MANILA, Philippines – The 1Sambayan coalition urges Finance Secretary Frederick Go and the Nationwide Treasury to return P107.23 billion in “extra funds” to the Philippine Deposit Insurance coverage Company (PDIC).
The PDIC remitted these funds to the Treasury in January 2025 as a part of a particular provision tied to unprogrammed appropriations underneath the 2024 Common Appropriations Act. This particular provision was additionally used to authorize the switch of P60 billion in “extra funds” from state well being insurer PhilHealth. (READ: Supreme Court docket orders return of P60B to PhilHealth, bars additional fund switch)
The state deposit insurer mentioned the funds have been meant for a number of authorities tasks such because the Metro Manila Subway and the Help to People in Disaster Conditions (AICS), a social assist program criticized for perpetuating political patronage.
1Sambayan identified that the Supreme Court docket already dominated that transfers made underneath the particular provision as unconstitutional.
“By this ruling, Particular Provision 1(d) and DOF Round No. 003-2024 have been stripped of any authorized drive. They can not function authority to switch the funds of any government-owned or managed company to the Nationwide Treasury,” the coalition mentioned.
Retired Supreme Court docket affiliate justice Antonio Carpio, who can also be the lead convener of 1Sambayan, earlier mentioned a few of the funds remitted by the PDIC have been diverted to the development of flood management tasks.
Due to the switch, the PDIC’s belongings as of end-2024 dipped to P278 billion from P339.6 billion in 2023.
“The drop in internet belongings is primarily attributed to remittances to the Bureau of the Treasury aggregating P107.2 billion fund stability underneath the GAA and P10.7 billion dividends, P1.2 billion working bills and P300 million cost of insured deposits,” the company wrote in its 2024 annual report.
Regardless of the switch, PDIC’s president and chief govt officer Roberto Tan earlier assured depositors that its Deposit Insurance coverage Fund remains to be sufficient to cowl shocks within the banking system.
Because the state’s deposit insurer, the PDIC ensures purchasers they will obtain as much as P1 million per depositor per financial institution within the occasion of a financial institution closure. – Rappler.com
