Metro Manila, Philippines – Vice President Sara Duterte’s ₱375-million confidential funds in 2023 were disallowed over improper disbursement and insufficient documents, state auditors said.
The notice of disallowance means Duterte and her colleagues should return the funds. They have six months to appeal the decision.
In the ruling of the Commission on Audit (COA) intelligence and confidential funds audit office shared by Bicol Saro Rep. Terry Ridon, a House justice committee member, the following people were asked to settle the disallowance immediately:
- Vice President Sara Duterte
- OVP special disbursing officer Gina Acosta
- OVP chief accountant Julieta Villadelrey
- former vice presidential security and protection group chief Col. Raymund Dante Lachica
The latest COA order is on top of the ₱73.2 million it asked Duterte to return for her confidential funds in 2022 when it junked the vice president’s appeal on the previous order. This means her potential obligations may reach ₱448 million.
Here’s why the ₱375 million were disallowed.
Improper disbursement
In its decision, COA flagged Duterte’s directive to Acosta to release cash advances for confidential expenses to Lachica.
“Cash advances shall be used for specific legal purposes related to CF [confidential funds] and or IF [intelligence funds]. Under no circumstance shall it be used for liquidation of the previous cash advance or be transferred from one accountable to another,” COA said, citing joint circular 2015-01.
Lack of supporting documents
Meanwhile, auditors mentioned the lack of documents that would support confidential expenses.
For example, COA said the payments of rewards worth ₱62 million had no supporting documents that would prove the success of confidential operations.
“These certifications and PIO reports did not specify the particular accomplishments demonstrating the success of the information gathering and/or surveillance activities directly related to the confidential operations undertaken as required by item 4.8.5. of the joint circular that necessitated the payments of rewards,” the decision read.
The agency added that at least ₱199 million used in supposed procurement of supplies and provisions of medical food aid were only supported by acknowledgement receipts.
COA said it is necessary for the office to substantiate their expenses with appropriate documents like official receipts or sales invoices.
“Though this office recognizes that by the very nature of the CF where identities of those involved. i.e. the informants, for whom supplies were used, owners of safehouses or owners of rented vehicles used for confidential activities, and the very details of the confidential activities are to be reasonably safeguarded, other details which can be disclosed evidencing validity should be submitted to warrant reasonable and adequate substantiation of the claimed confidential expenses,” state auditors said.
Prohibited disbursements
COA also found out that disbursements dated May 18 and July 6, 2023 were made prior to the grant of cash advance.
“These payments indicated that the cash advance was utilized for reimbursement purposes, which is contrary to item 6.1.2 of the joint circular. The said provision provides that in no case shall a cash advance for CF be utilized as reimbursement of expenses prior to the granting of cash advance,” it said.
NewsWatch Plus cannot independently verify Ridon’s document.
The Office of the Vice President said on Monday, April 20, it has yet to secure a copy of the notice of disallowance, which was first disclosed at the impeachment hearing on April 14.
