Metro Manila (CNN Philippines, July 3) — The Commission on Audit (COA) flagged the Office of the Vice President’s immediate establishment of satellite offices (SO) when Vice President Sara Duterte assumed her post last year.
In a report uploaded on its website on June 29, the COA noted the OVP failed to fully comply with procurement rules and processes when it purchased property worth over ₱668,000 for the satellite offices in July 2022.
READ: The COA flagged the OVP’s immediate establishment of satellite offices when VP Sara Duterte assumed her post last year. | @acnichollstan pic.twitter.com/DGwj30D1Z0
— CNN Philippines (@cnnphilippines) July 3, 2023
“The immediate establishment of SOs without enough equipment to operate led to management’s decision to resort in immediate purchase of PPE (plant, property, and equipment) and semi-expendable property using the cash of its officers, which the OVP subsequently paid through reimbursement,” the COA said.
The OVP said it launched at least seven SOs on Duterte’s first day on July 1, 2022 in a bid to expand the agency’s services to Filipinos outside Metro Manila.
The SOs are in Davao, Cebu, Tacloban, Bacolod, Zamboanga, Dagupan, and Surigao.
Auditors said the establishment of these offices without streamlined processes resulted in late reporting and recording of purchase transactions.
“However, controls to ensure that government resources were utilized as intended and prevented from loss should also be considered,” they noted.
The COA advised the OVP to stop procurement transactions based on reimbursement as it is against the procurement law. They added the OVP should properly plan and schedule the procurement of property.
In its comment, the OVP management explained that reimbursement was the best option at the time to address the immediate need. It assured the COA that OVP staff exercised necessary diligence to ensure items procured are of the required quality and lowest price available in the market.
₱125 million in confidential funds
In the same report, the COA also found the OVP spent ₱125 million in confidential funds last year.
Based on previous financial statements, the OVP at least in the last five years did not have expenses under confidential funds.
Based on the its financial statements, the OVP also spent ₱125 million in confidential funds in 2022 from zero in the previous year. | @acnichollstan pic.twitter.com/ZgGX3LTanR
— CNN Philippines (@cnnphilippines) July 3, 2023
From 2017 to 2021, the COA found the OVP only spent under extraordinary and miscellaneous expenses ranging from ₱410,000 to ₱547,200.
Extraordinary and miscellaneous expenses cover costs incidental to the performance of official functions such as meetings and conferences while confidential funds are for expenses related to surveillance activities.
Based on the financial statement, the OVP’s expenses for assistance or subsidy also went down by around ₱147 million to some ₱378 million in 2022 from over ₱526 million in the previous year.
During hearings for the 2023 budget, several lawmakers questioned Duterte for allotting ₱500 million in confidential funds to the OVP and another ₱150 million for the Department of Education which she also heads.
Congress ended up approving the ₱500 million for the OVP and another ₱30 million for DepEd.
