COA Auditor Warns of Potential Disallowance of Millions in VP Sara Duterte's Confidential Funds

A Commission on Audit (COA) state auditor testified during the impeachment trial of Vice President Sara Duterte that up to 612.5 million pesos in confidential funds for the Office of the Vice President (OVP) and the Department of Education (DepEd) could face disallowance. Auditor Xylene Mae del Campo stated that transferring funds from a special disbursing officer (SDO) to another person breaks the chain of accountability and exposes public money to possible misuse. This specific issue led to the disallowance of 375 million pesos from the OVP's 2023 funds after money handled by SDO Gina Acosta was transferred to Col. Raymund Dante Lachica.

The prosecution highlighted that the OVP used confidential funds for activities such as Christmas parties, tree planting, and gift giving. Auditor del Campo noted that Joint Circular No. 2015-01 prohibits the use of such funds for entertainment expenses and forbids using cash advances to reimburse expenses made prior to the granting of the advance. Evidence showed some events occurred between December 13 and 19, 2022, while funds were encashed on December 20 and authorized for disbursement starting December 21.

Defense counsel Kristine Ferrer argued that the COA did not cite the use of unusual names on acknowledgment receipts or the fact that disbursements occurred in multiple locations on the same day as grounds for disallowance. Auditor del Campo confirmed that these specific factors were not included in the notice of disallowance. The defense maintained that the COA presumed regularity based on the SDO's certification under oath.

Members of the House prosecution panel, including Representative Jonathan Keith Flores and Representative Zia Alonto Adiong, argued that the OVP and DepEd have no mandate for secret operations and that the Vice President continues to perform the same activities without confidential funds. Meanwhile, the COA is studying whether to conduct a fraud audit of the transactions following questions about unusual aliases on receipts.