The Commission on Audit (COA) has disallowed ₱375 million in confidential funds used by the Office of the Vice President (OVP) for 2023 due to lack of supporting documents, insufficient justification, and alleged involvement of unauthorized personnel in fund disbursement.
According to documents shared by Bicol Saro Rep. Terry Ridon, this is not an isolated case.
The COA had earlier raised similar findings in the OVP’s 2022 confidential funds, which lawmakers describe as a possible pattern of irregularities under Vice President Sara Duterte.
The COA Intelligence and Confidential Funds Audit Office reported that responsibility for releasing funds was allegedly transferred from Gina Acosta, a special disbursing officer, to Col. Reymund Dante Lachica, the former head of the Vice Presidential Security and Protection Group (VPSPG).
This arrangement was flagged as inconsistent with Joint Circular No. 2015-01, signed on January 8, 2015, by the COA, the Department of Budget and Management (DBM), the Department of the Interior and Local Government (DILG), the Governance Commission for GOCCs, and the Department of National Defense (DND).
The circular mandates strict accountability for cash advances and prohibits transferring responsibility between officers.
The March 31 Notice of Disallowance (ND) covered three tranches of confidential fund releases in January, April, and July 2023 amounting to ₱125 million per tranche.
The COA stated that the vice president’s alleged directive for Acosta to release cash advances to Lachica was “contrary to Item 6.1.1” of the joint circular, which requires funds to be used for specific legal purposes and forbids using new advances to settle previous ones.
Breakdown of questioned transactions
Among the specific findings were:
• ₱199 million: Supported only by acknowledgement receipts, without official invoices or receipts.
• ₱62 million: Given out as reward payments without evidence of successful intelligence outcomes or verified surveillance.
• ₱300,000: Related to cash advance reimbursements.
COA also noted major documentation deficiencies, including a lack of proof that informant rewards led to successful intelligence operations, while purchases of supplies, food, and relief goods were supported only by acknowledgement receipts.
The OVP confirmed receipt of the ND and said it would pursue appropriate remedies under COA rules, but clarified that it has yet to receive a final ruling on the 2022 audit findings.
Named respondents in the disallowed transactions include Duterte, Acosta, Lachica, and OVP Chief Accountant Julieta Villadelrey.
Ridon said that if upheld, the total disallowance could reach ₱448 million, including the prior ₱73 million flagged in 2022. He described the findings as evidence of a continuing pattern of misuse and a breach of public trust.
Ramil Madriaga, the self-admitted former “bagman” and witness, previously claimed he had helped distribute ₱125 million in December 2022 allegedly sourced from confidential funds.
Madriaga said the amount was distributed in just one day and not within 11 days as previously reported.
The COA further noted that the OVP’s confidential fund allocation in 2023 was higher than those of several security agencies, including the National Intelligence Coordinating Agency, the National Security Council, the National Bureau of Investigation, the DND, and the DILG.
The issue is now part of ongoing hearings in the House Committee on Justice.
Government agencies, including the Office of the Ombudsman, Bureau of Internal Revenue, Securities and Exchange Commission, and Anti-Money Laundering Council, are expected to submit relevant records.
The committee said the hearings could end on April 29, at which point members will vote on whether there is probable cause to elevate the impeachment case to the plenary.
Written by Doreen P. Cabildo, Insight PH
Doreen P. Cabildo, Insight PH is a dedicated campus journalist and contributor. Their insightful writing sparks meaningful conversations and keeps the community informed.
