Metro Manila, Philippines – The Commission on Audit (COA) initially cleared the Department of Education – via a credit notice – in its use of confidential funds in the first and second quarters of 2023 under Vice President Sara Duterte in a concurrent capacity, a state auditor said on Tuesday, Aug. 11.
The COA issues a credit notice to an agency if the liquidation documents are found in order and pass audit standards.
However, state auditor Xylene Del Campo clarified that a credit notice can still be reopened if there is material evidence that a transaction was tainted with fraud or collusion before the three-year expiry of the settlement.
Defense spokesperson Michael Poa reiterated that his client’s previous office had been issued a credit notice on Aug. 9, 2024.
“Dati pa sinasabi namin yan kahit nung mga [House] committee hearings pa lang na talagang may credit notice ang DepEd [We’ve been saying it since the House committee hearings that the DepEd has a credit notice]. Obviously that’s not something highlighted even by media but yun ang [that’s a] fact,” Poa said in a post-trial press briefing
“I think it was Aug. 9, 2024 when DepEd received its credit notice so at least nalabas na ngayon in open court na yun talaga yung status [the status has been made public in open court],” he added.
He also recognized that the notice can be reopened if new evidence were to come out.
Meanwhile, the prosecution pointed out that the credit notice was issued before former disbursing officer Edward Fajarda admitted at a congressional hearing that he handed over the confidential funds to Col. Dennis Nolacso, Duterte’s security aide.
Del Campo pointed out that such transfer was prohibited by the joint circular governing the use of confidential funds.
“They were not able to take into account that admission anymore, as opposed to the liquidation or audit of the OVP funds, na kaya she was able to count on that admission. Kaya after na-issue ang AOM, dumiretso na siya sa notice of decision,” said Jay Tolosa, spokesperson and counsel for prosecutors.
[Translation: They (COA) were no longer able to take that admission into account, unlike in the liquidation or audit of the OVP funds. That’s why she (Del Campo) was able to rely on that admission. After the AOM was issued, she proceeded directly to the notice of disallowance.]
Fajarda testified at the House committee on good government and public accountability in November 2024.
The DepEd under Duterte had ₱112.5 million in confidential funds in 2023, which the agency encashed in the first three quarters of 2023 through checks worth ₱37.5 million.
In her testimony, Del Campo revealed that these funds were used to gather intelligence on events that Duterte attended, including rice distributions, payouts to a community-based employment program called TUPAD, medical missions, and hospital visits.
READ: Duterte spent confidential funds for Christmas parties, tree-planting, other events – auditor
