FINAL REPORT - Philippine Center for Investigative Journalism

The Medicare Fund is a trust fund as are all funds at the OWWA. The
OFW-Medicare fund is taken from the annual contributions of P900 from
each migrant worker. The fund is intended for the medical needs of
OFWs and their identified dependents/beneficiaries only.
Three months later in February 14, 2003, Arroyo signed Executive
Order 182 that transfers all the Medicare functions and funds from
the OWWA to PhilHealth (Annex “D”).
The said executive order was kept a closely-guarded secret by
Malacañang until its discovery by MIGRANTE International in June
2003.
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In a forum held on July 6, 2003 (in) which our Chair Connie Bragas-
Regalado at the Philippine Consulate in Hong Kong (attended), Duque
admitted that effecting the transfer without consulting the
stakeholders of the trust fund is an ‘oversight.’
She (Regalado) asked not only once, but thrice, before he explained
what he meant by ‘The proposed transfer will have a significant
bearing on 2004 elections...’ in his November 20, 2002 Memo for the
President. He replied that he ‘just wanted to build up the name of
the President’ to the 8 million indigents — which they think are
possible voters.
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Despite formal petitions and protests from OFWs and their families
and pending investigations at the House of Representatives, OWWA
Board Resolution No. 005 (s. 2004) dated February 2, 2004, attached
as Annex “E” proves that the transfer of OWWA Medicare funds to
PhilHealth was being railroaded by Arroyo appointees in the labor
portfolio.
In a press statement dated 15 March 2004 attached as Annex “F”, Hon.
Corazon P. Carsola, the only Land-based migrant workers’
Representative in the OWWA Board of Trustees Overseas said that ‘since
the start, I have always been against the transfer of the Medicare
Fund, to PhilHealth. I feared that transferring the fund to a businessoriented
entity such as the PhilHealth will in the long run prove
detrimental to the future of medical services to OFWs. I have always
stood by the position that the OFW Medicare Fund must remain as a
separate fund to answer the needs of OFWs and their families. Also,
I feared for the livelihood of employees of the OWWA Medicare who may
lose their jobs if it is dissolved and its operations are moved to
PhilHealth.’
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‘In June 2003, I myself was shocked to learn of the existence of
Executive Order 182 signed by Arroyo dated February 14, 2003 that
ordered the transfer. I was shocked for I was still with the
knowledge that the issue of the transfer remains unsettled with the
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