MANILA, 13 August 2003 — Labor Secretary Patricia Sto. Tomas said yesterday she has ordered an investigation into the disbursement of the OWWA-Medicare fund after an initial check unearthed spurious claims.

Acting on a tip, the governing board of the Overseas Workers Welfare Administration (OWWA) looked into two sample cases involving claims of up to 306,000 pesos an found both cases to be phony, Sto. Tomas told a press conference.

She said investigators checked with the doctors involved and found that the supposed patients never even went to them for consultations.

OWWA Administrator Virgilio Angelo said he requested help from Sto. Tomas and the Philippine National Police (PNP) after observing that something irregular was going on.

“I have specifically requested both offices to help OWWA investigate what I gravely suspect is the possible penetration by criminal elements, outside and inside of the OWWA, of the agency’s Medicare benefit system, which has resulted in Medicare benefit claims running to millions of pesos,” he said in the same press conference.

Sto. Tomas chairs the welfare agency by virtue of her position as labor secretary. Angelo acts as the chief executive officer.

Angelo said his initial findings pointed to the statistical improbability of the payments against actual claims which were showed a 97 percent availment. He said that the availment rate several years ago stood at 8-15 percent. Sto. Tomas said that they would go through all medical claims because for the one-month period from June 26 to July 26 alone, availments amounted to 40 million pesos, while actual claims totaled 41 million pesos.

Without naming suspects, Sto. Tomas and Angelo said they were looking into the possible involvement of a former OWWA employee with the assistance of someone from inside the organization.

“This being the case, the investigation will focus on the extent of the suspected anomalies, including finding out who the perpetrators are and their cohorts/collaborators, if any,” Angelo said.

Angelo promised that “the investigation will be swift and thorough, with the aim of ferreting out the truth and helping us formulate measures of control that will guide us in managing and administering the agency efficiently and well, as expected of us by our OFWs.”

Sto. Tomas also clarified that the transfer of the OWWA-Medicare fund to the Philippine Health Insurance Company (PhilHealth) never materialized.

Earlier, non-government organizations accused the government of transferring the fund for political reasons, citing a letter by the PhilHealth chief.

Sto. Tomas said the transfer was to be effected through an executive order signed by Executive Secretary Alberto Romulo early this year. But, she opposed the transfer because she did not “like the terms stipulated in the EO.”

“That has been revoked because I will not allow the transfer of funds that will not benefit the OFWs (Overseas Filipino Workers),” Sto. Tomas said.

She said the Department of Labor and Employment (DOLE) was trying to formulate a health plan wherein some funds would remain with OWWA for rehabilitation expenses.

For example, Sto. Tomas said if a worker’s limb was cut off, PhilHealth would answer for the actual medical care and OWWA-Medicare funds could be used to create a prosthesis for the severed limb.