MANILA — Senator Loren Legarda raised concerns over the remittance of ₱107.23 billion from the Philippine Deposit Insurance Corporation (PDIC) to the National Treasury, cautioning that funds held in trust to protect depositors must not be treated as ordinary government revenues.

Legarda noted that the remittance was made under a special provision in the 2024 General Appropriations Act, which has since been declared unconstitutional by the Supreme Court. She said the transfer of deposit insurance reserves was flawed and raises serious moral and policy concerns regarding the State’s treatment of funds meant to protect depositors.

“PDIC funds exist to insure deposits and protect ordinary Filipinos when banks fail. They are not surplus funds and should not be treated as general revenues, but reserves meant to ensure that depositors do not lose their savings,” Legarda said.

She warned that diverting PDIC reserves, even for development purposes, could undermine public confidence in the deposit insurance system, weakening the financial safety net relied upon by small depositors, retirees, overseas Filipino workers, and micro-entrepreneurs.

Legarda drew parallels with the recent Supreme Court ruling on PhilHealth, in which the unconstitutional transfer of ₱60 billion in health insurance funds reduced resources for healthcare services and eroded public trust.

“Whether it is health insurance or deposit insurance, funds collected and reserved to protect people in times of crisis must be respected as a trust. When these safeguards are weakened, the cost is ultimately borne by ordinary Filipinos,” she said.

She urged the government to stop treating social protection reserves as general-purpose funds and called on Congress to review and correct policies that weaken trust funds essential to public confidence in the financial system.

“Our responsibility is not just to manage public finances, but to protect funds that people rely on in moments of crisis. These reserves exist to provide security when it is most needed, and they must be preserved for that purpose,” Legarda added.