COA upholds disallowance of P73 million in OVP confidential funds

MANILA, Philippines — The Commission on Audit (COA) has denied with finality the motion for reconsideration filed by Vice President Sara Duterte and several officials of the Office of the Vice President (OVP), affirming the disallowance of over P73 million in confidential expenses incurred during the final days of 2022.

In a resolution dated October 5, the Commission Proper upheld the Notice of Disallowance worth P73,287,000.00, which flagged the OVP's confidential spending from December 21 to 31, 2022.

The disallowed amount was drawn from a larger P125 million confidential fund released to the OVP on Dec. 20, 2022.

“Disbursement of large public funds deserves no less; taxpayers' money should always be spent with paramount consideration of full transparency and reasonable budget allocation. Indubitably, these cannot be wantonly sacrificed on the altar of exigency inasmuch as reckless handling and accounting of public funds have no place in a government that endeavor to keep inviolate the trust of the people,” the COA said.

According to the decision, the P73.287 million disallowance comprises P69.787 million allocated for the payment of rewards — which includes P10 million in cash rewards, P34.857 million in various goods, and P24.930 million in medicines — alongside P3.5 million spent on office equipment, such as tables, chairs, desktop computers and printers allegedly utilized in safehouses.

The Commission ruled that the OVP's disbursements were both "irregular" and "illegal" because they failed to comply with the strict guidelines of the Commission’s joint circulars.

Under the joint circular, payments of rewards to informers must be supported by documents proving the success of information-gathering or surveillance activities directly resulting from the informer's tip.

COA noted that the OVP failed to submit any such proof. Instead, the OVP submitted a "List of Activities" attended by the Vice President and satellite office staff, which COA deemed insufficient as it did not narrate any tangible accomplishments.

“In this case, the OVP did not submit documents evidencing the success of the information gathering and/or surveillance activities on account of the information given by the informer,” the COA said.

“The list did not indicate or narrate particular accomplishments that resulted from the information gathered and/or surveillance activities, and that were directly related to the specific confidential activities undertaken,” it added.

Furthermore, COA revealed that the OVP submitted a certification from the Vice Presidential Security and Protection Group (VPSPG) listing routine security duties like casing, surveillance, and profiling.

COA pointed out that VPSPG officers are salaried personnel of the Armed Forces of the Philippines performing regular duties and are "fundamentally disqualified" from receiving informer rewards, which are legally restricted to third-party, non-employees.

Regarding the P3.5 million spent on office furniture and IT equipment, COA stated that the OVP failed to prove how procuring these standard items through regular government procedures would have compromised confidential operations.

The OVP also relied on mere acknowledgment receipts (ARs) rather than official receipts or sales invoices required for public funds. The COA, however, dismissed the OVP's reliance on ARs.

“The movants merely submitted ARs to substantiate the CEs. It is as plain as day that the ARS cannot amount to a substantial compliance with the COA rules, the JC, and the GAA. They are at best, farce, of no significance, and utterly subpar the scintilla of substance which needed to demonstrate the proper disposal of the OVP's CF,” the COA said.

In a statement, Duterte said that it has yet to receive a copy of COA's resolution.

"The office has already anticipated the possibility of this decision and has prepared to respond through the appropriate legal and institutional channels," the OVP said.

"Nevertheless, the OVP remains committed to fulfilling its mandate—to develop and promote programs that uplift the lives of the Filipino people," it added.