PDIC Seeks Recovery of P107.23-Billion Remittance to Strengthen Deposit Insurance Fund
Key Takeaways
- •The PDIC remitted P107.23 billion to the Bureau of the Treasury in January 2025 under a special provision in the 2024 General Appropriations Act and a Department of Finance circular.
- •The Supreme Court struck down the budget provision and the DoF circular in December 2025, ruling that both were executed with grave abuse of discretion.
- •PDIC President Roberto B. Tan confirmed the agency is working with pertinent government agencies to recover the transferred amount and described recoupment as possible.
- •PhilHealth has already recovered its P60-billion remittance made under the same policy, establishing a precedent for other state corporations seeking to reclaim transferred funds.
- •Recovering the funds would bolster the PDIC's deposit insurance fund, which backs depositor coverage of up to P1 million per depositor per insured bank.
The Philippine Deposit Insurance Corp. (PDIC) is working to recover the P107.23 billion it remitted to the national government in 2025 under a budget provision that the Supreme Court has since struck down, with the aim of replenishing its deposit insurance fund.
"We're working with the pertinent agencies to try to recover the amounts that have been transferred. We're now coordinating with the agencies that are involved in that process," PDIC President and Chief Executive Officer Roberto B. Tan told reporters on the sidelines of a briefing on Wednesday.
When asked whether the PDIC could recoup the remittance, Mr. Tan said, "It's possible."
He noted that the state deposit insurer was still able to meet its performance targets despite the fund transfer.
"We have to make sure it does not have a negative effect on our primary mandate, which is to maintain a deposit insurance fund that will be able to address expected losses or failures as well as unexpected losses or failures," Mr. Tan said.
The deposit insurance fund backs PDIC's coverage of up to P1 million per depositor per insured bank, serving as a financial safety net for depositors in the event of bank failures.
The potential return of the funds would bolster the PDIC's deposit insurance fund, he added. "It will help, of course. It will augment the fund again."
Bangko Sentral ng Pilipinas (BSP) Governor and PDIC Chair Eli M. Remolona, Jr. earlier stated that authorities were studying whether the funds could be returned to the state insurer.
In January 2025, the PDIC remitted P107.23 billion to the Bureau of the Treasury as "unrestricted retained earnings" pursuant to a special provision in the 2024 General Appropriations Act (GAA) and a circular from the Department of Finance (DoF). The provision authorized government-owned or -controlled corporations to transfer excess reserve funds to the Treasury to finance unprogrammed appropriations under the 2024 budget.
The Philippine Health Insurance Corp. (PhilHealth) also remitted P60 billion in excess funds under the same policy.
In December 2025, the Supreme Court declared the GAA provision and the DoF circular void, ruling that both were carried out "with grave abuse of discretion amounting to lack or excess of jurisdiction." The decision specifically addressed petitions related to the PhilHealth transfer.
PhilHealth has since recovered its P60-billion remittance, establishing a precedent for other affected state corporations to reclaim transferred funds.
— A.M.C. Sy
