Special provision eyed on secret funds in 2027 budget

MANILA, Philippines — The Senate is eyeing a special provision in the 2027 national budget to ensure transparency and the proper use of confidential funds, following revelations of gaping loopholes in state auditing rules during recent impeachment hearings.

Senate President Sherwin Gatchalian said he and Senate finance committee chairman JV Ejercito would study the inclusion of the special provision, though he noted the limitations of a yearly budget clause.

“We can also do that, but a special provision needs to be placed every year, if not, it will disappear,” Gatchalian told radio dzBB.

“That’s the complication of a special provision. So, myself and chairman JV will study that,” he added.

The push for tighter controls comes amid scrutiny of the anonymous acknowledgment receipts used to liquidate millions in secret funds.

Gatchalian pointed out that the current Joint Circular (JC) of the Commission on Audit (COA) regulating these funds lacks clear directives for documenting informants and defining the parameters for security officers.

He urged COA to amend its guidelines to prevent future abuse.

“There are many things there that still need improvement. For example, the role of the security officer. We heard during the impeachment about what’s being given to the security officer. Does he actually have a role? Should he be funded? These are the matters that the COA needs to clarify through the JC,” Gatchalian said.

“I think it’s about time to update so that those who would use CF (confidential funds) in the future won’t abuse it,” he added.

Reacting to a proposal by House prosecutor Rep. Terry Ridon to pass a confidential intelligence fund “Integrity Bill” that would impose heavy statutory penalties for the misuse of secret funds, Gatchalian expressed support, but maintained that amending the COA circular is the fastest immediate remedy.

Aside from safeguarding confidential funds, Gatchalian confirmed that the Senate would retain the “anti-epal” provision in the 2027 budget to stop politicians from claiming credit for government aid (ayuda) programs.