By Eileen Mencias
Finance professionals say the ₱107 billion taken from the Philippine Deposit Insurance Corporation (PDIC) could soon be returned following a Supreme Court ruling ordering the return of funds from the Philippine Health Insurance Corporation.
Financial Executives Institute of the Philippines (FINEX) president Edmund Alan “EJ” Qua Hiansen said the ruling “reinforces a core principle: funds held in trust for the Filipino people cannot be diverted for purposes outside their mandate.”
Funds from PhilHealth and PDIC were transferred to the national treasury under a rider in the General Appropriations Act, bypassing safeguards in their charters.
“This development has direct implications for the ₱107 billion remitted from the PDIC as the Court’s reasoning strengthens the view that agencies with fiduciary responsibilities must remain fully funded and independent,” Qua Hiansen said.
Deposit insurance premiums, paid by banks, fund the deposit insurance system. Dividend remittances from PDIC must come only from its income.
“We believe the decision bolsters the case for returning the PDIC funds promptly,” Qua Hiansen added.
In a joint statement on November 18, 2025, FINEX and other business groups—the Institute of Corporate Directors, Makati Business Club, Philippine Chamber of Commerce and Industry, and Philippine Finance Association—urged the Department of Finance and Congress to “return the full ₱107 billion remitted from PDIC to the National Treasury and restore it in the 2026 National Budget as part of the PDIC’s balance sheet,” warning that the 2024 remittance “raised serious concerns over financial stability and public confidence in the banking system.”
They said the sweep linked to unprogrammed allocations in the 2024 budget and the flood control ghost projects scandal “sets a dangerous fiscal precedent” and “creates uncertainty about the independence and integrity of the deposit insurance system,” particularly as PDIC is “the nation’s last line of defense for depositors.”
