Edu Manzano Sparks Debate Over Ralph Recto’s Alleged Wrongdoing
EDU MANZANO – The actor drew attention online by sharing an article suggesting that Executive Secretary Ralph Recto could face plunder charges.
Recto, who is married to actress Vilma Santos, is reportedly under scrutiny for his alleged involvement in the diversion of government trust funds to finance flood control projects. Retired Supreme Court Associate Justice Antonio Carpio explained that if the Supreme Court finds the Bureau of the Treasury (BTr) illegally transferred P167 billion in funds, Recto could be held liable for plunder and technical malversation.
The funds in question included P60 billion from the Philippine Health Insurance Corporation (PhilHealth) and P107 billion from the Philippine Deposit Insurance Corporation (PDIC), which were transferred to the BTr under directives issued while Recto served as Finance Secretary.
Carpio clarified that technical malversation occurs when funds are used for purposes other than what the law allows, regardless of whether the official personally benefited. In this case, legally restricted trust funds intended for specific programs, such as healthcare and deposit insurance, were reportedly diverted to support flood control initiatives. Carpio also noted that the 2024 General Appropriations Act introduced a new provision allowing excess funds from government-owned corporations to be transferred for unprogrammed appropriations, a mechanism that had never been part of previous budgets.
The retired justice emphasized that such transfers could constitute plunder because they involved multiple tranches from different agencies, violating constitutional safeguards. Appropriations cannot be redirected except as savings approved by the President, and special funds like PhilHealth’s sin tax revenues must be used solely for their intended purposes. Carpio argued that officials involved in the scheme should return the misused funds to the government and suggested legislation requiring that restituted money reimburse the affected agencies, similar to laws on ill-gotten wealth recovery.
In response, Recto denied any wrongdoing in relation to the alleged fund diversion for flood control projects.
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