Problem
Philippines Health Insurance Corporation
• Company case/problem about internal control system or risk management (local or internal Company)
In order to provide the Philippines with universal health coverage, Phil Health was established in 1995. It belongs to the Department of Health and is a tax-exempt, government-owned, and government-controlled corporation (GOCC) of the Philippines. After recent allegations of corruption surfaced following the retirement of one of its officers, the Philippine Health Insurance Corporation (Phil Health) is now under intense examination. Thorrsson Montes Keith, an anti-fraud legal officer, resigned after accusing "widespread corruption" of being the cause of his salary delays, which began when he "investigated officers in PhilHealth." The agency's 10-year actuarial life has been significantly shortened by lower collections and higher payouts as a result of the coronavirus disease 2019 (COVID-19) pandemic, according to a PhilHealth official, who also predicted that the organization will run out of money by 2022. The "widespread corruption in PhilHealth," which Keith mentioned in his resignation letter dated July 23, made the health care problem worse. He also mentioned his disagreement to the overseas Filipino workers' (OFWs') requirement to pay contributions, the alleged injustice in the promotion process, and the delay in receiving his salary and hazard pay since he began looking into the agency's officers. This problem may result in the financial collapse of the institution to the prejudice of the Filipino people amid the COVID-19 pandemic.
• The root/origin of the problem
The former anti-fraud legal officer of the state-run agency, Thorrsson Montes Keith, claimed that "mafia members" were in charge of what he calls the "crime of the year" due to anomalous transactions. Thorrsson Montes Keith earlier resigned from the position due to "widespread corruption" within the office. Due to the delegation of mafia syndicates with extra members who hold senior positions, which helps extend illicit operations, the culture of corruption continues to flourish within PhilHealth.
Task
a) What is the solution to the case/problem?
b) The conclusion (Include the application of recommendations of the Code)