Resigned anti-fraud officer Thorsson Montes Keith said he is willing to testify about the questionable deal between the Philippine Red Cross (PRC), chaired by Senator Richard Gordon, and the embattled Philippine Health Insurance Corporation (PhilHealth).

Keith told Rappler in phone interview on Wednesday, September 16, that there is strong evidence that would prove that the PRC deal is “illegal.”

“Hindi nila matatakbuhan ito dahil mas direct evidence ito. Meron ‘yung memorandum of agreement that was signed by him and General Morales. So ‘yung pinirmahan nila na ‘yun, illegal po ‘yun eh,” Keith said.

(They will not get away with this because of direct evidence. There’s a memorandum of agreement signed by former PhilHealth chief Ricardo Morales. What they signed was [an] illegal [deal].)

Keith added, “Hindi ko lang masabi dito [ang mga evidence] kasi baka mamaya matakbuhan na naman nila ito.” (I cannot mention the evidence now because they might try to get away with this again.)

A Rappler investigative story published on September 15 revealed that PhilHealth and the PRC entered into a contract deemed disadvantageous to the government, following the advance payment of P100 million for PRC’s COVID-19 tests.

While PRC helped the country in ramping up its COVID-19 testing capacity, several laws, including state audit rules, clearly prohibit advance payments. They mandate reimbursement for the protection of public funds – meaning, the party has to incur costs and render services first before it can be paid back.

According to Keith, the PhilHealth board was not consulted about the PRC deal which appears to have been done secretly.

“Sikreto ‘yan. Walang approval ‘yan ng PhilHealth Board, ” Keith said. (It was a secret deal. No approval from the PhilHealth board.)

Why only now?

Asked why he came forward with his testimony against the PRC deal only now, Keith said that he respects the Senate that initiated the probe into the corruption mess.

“Kasi senator siya. Respeto sa Senate. At saka kailangan diyan one at a time,” Keith said. (Because he is a senator. I respect the Senate. And the issues need to be addressed one at a time.)

Keith said that he already told Congress and the task force investigating the corruption in PhilHealth about this, but it got sidelined due to “overwhelming” information.

“Nabalitaan ko na mag-pa-file daw ang Congress. Wala talagang kawala si Senator Gordon dito. Kaya nanahimik siya kasi alam niya ang sinasabi ko,” Keith said. (I heard that Congress will file [to open a probe]. Senator Gordon has no escape in this. He remained silent because he knows what I’m talking about.)

Lawmakers in August investigated PhilHealth for alleged corruption as whistleblowers said some P15 billion ($309.6 million) in funds were pocketed by its executives.

Keith was among those who exposed corruption at the state health insurer in August. (READ: PhilHealth execs misspent, stole P15 billion, says resigned anti-fraud official)

The Department of Justice (DOJ) said on Tuesday it recommended the filing of 6 complaints against 7 PhilHealth officials, including former PhilHealth chief Ricardo Morales. (READ: Morales falls, while Duque is cleared in Duterte-ordered DOJ PhilHealth probe)

Of the 7 PhilHealth officials who will face complaints based on the DOJ’s findings, Morales had the most cases. (READ: Legal team vows ‘vigorous’ defense of ailing ex-PhilHealth chief)

Keith said that he would tell what he knows about the questionable deal when Congress starts its probe.

Not disadvantageous to gov’t

In a 17-page reply to Rappler on September 8, PRC maintained that advance payments by PhilHealth are allowed and that the deal was not disadvantageous to government.

“How was the government put in a disadvantage if the PRC performed its services, was paid from the P100 million, and is now owed over P800 million while not ceasing its services to PhilHealth even if it legally may do so under the MOA. Who is at a disadvantage now?” PRC said in its reply.

For his part, Gordon said in an earlier TV interview, there is no reason to suspect the Philippine Red Cross of “cheating.” PhilHealth can easily cross-check the PRC’s bills with other government agencies such as the Philippine Coast Guard and local government units.

The PhilHealth anomalies have fueled anger and frustration at government at a time when the Philippines has the highest number of coronavirus cases in Southeast Asia. – Rappler.com