The Commission on Audit (COA) issued a ‘notice of disallowance’ to the Office of the Vice President (OVP), ordering to return PHP73.287M out of PHP125 M spent for confidential expenses last 2022.
The further breakdown of the expenditure stressed that P6 out of P10 of the confidential funds were not used properly
According to COA, the OVP only submitted a list of 105 activities spearheaded by the offices of OVP but failed to submit any document showing the success of information gathering and surveillance activities to back up the payment of rewards.
Refuses to answer questions
Vice President Sara Duterte refused to answer questions about the OVP’s funds.
“I would like to forgo the opportunity to defend the budget in the question and answer format. I would leave it to the House to decide on the budget submitted,” Duterte said
House appropriations committee senior vice chairperson Stella Quimbo then countered that the lawmakers are ‘just wasting time’ if the Vice President will continue to answer repeated responses and deflect answering questions.
What is notice of disallowance?
Based on the COA 2009 Revised Rules of Procedure, disallowance is “the disapproval in audit of a transaction, either in whole or in part.”
A government transaction is disallowed when it is irregular, unnecessary, excessive, extravagant, and illegal. In this case, Duterte has many excessive and unnecessary expenses in the OVP’s confidential funds, such as the ‘Isang Kaibigan’ book publishing, costing P10-M.
According to COA, the notice of disallowance can be settled through refund or submission of required documents and information.
When the persons liable immediately pay or refund the disallowed amount in full before the lapse of 180-period, there is no need to appeal to the notice.
Breakdown of 2022 confidential funds
According to ACT Teachers Rep. Castro, the breakdown of the OVP’s confidential funds revolved around purchase of information for P14 million (11.2%), payment of rewards for P10 million (8%), rental of safe houses for P16 million (12.6%), purchase of supplies for P35 million (28%), food aid for P40 million (32%), and travel expenses for P10 million (8%).
Castro then questioned the P40 million spent on food aid, emphasizing that it was not an ‘intelligent move’ from the Vice President.
“’Di naman pwedeng gagawa ng kalokohan tapos pababayaan na lang, dapat may accountability. Her misuse of confidential funds is an impeachable offense,” Castro said.
Why is OVP’S confidential funds problematic by nature?
According to the 2015 Joint Resolution, confidential funds can only be used for:
- Purchase of information necessary for the formulation and implementation of program, activities and projects relevant to national security and peace and order
- Rental of transport vehicle related to confidential activities
- Rentals and the incidental expenses related to the maintenance of safehouses
- Purchase or rental of supplies, materials and equipment for confidential operations that cannot be done through regular procedures without compromising the information gathering activity concerned
- Payment of rewards to informers
- [Uncovering and preventing] illegal activities that pose a clear and present danger to agency personnel or property, or other facilities and resources under the agency protection, done in coordination with appropriate law enforcement agencies
