Submit report on VP’s secret funds, COA told

Vice President Sara Duterte —Official Facebook pAge of Inday Sara Duterte

MANILA, Philippines — The powerful House committee on appropriations agreed on Tuesday to subpoena the Commission on Audit’s (COA) reports on the confidential and intelligence funds (CIF) given in 2022 and 2023 to the Office of the Vice President (OVP) and Department of Education (DepEd), both led by Vice President Sara Duterte.

The motion to issue a subpoena was proposed by the Makabayan bloc composed of ACT Teachers Rep. France Castro, Gabriela Rep. Arlene Brosas and Kabataan Rep. Raoul Manuel, at the hearing of the committee led by Marikina Rep. Stella Quimbo on COA’s proposed 2025 budget.

READ: Sara asks SC to dismiss petitions vs P125-M OVP confidential funds

“By virtue of the oversight power of the committee on appropriations, the motion to issue a subpoena duces tecum requiring the COA to submit its audit reports on the use of confidential funds for fiscal year 2022 to 2023—hearing no objections—is carried,” Quimbo said.

Castro was the first one to bring up the issue regarding the OVP, which reportedly spent P125 million in confidential funds within 11 days in 2022.

This finding, along with the revelation that Duterte had sought P500 million and P150 million, respectively, for the OVP and DepEd in 2024, triggered public outrage and eventually led to the House of Representatives stripping both agencies of the secret funds.

Duterte, who resigned as education secretary last month, earlier said that she would not seek confidential funds for her office next year.

Castro’s concern

In Tuesday’s hearing, Castro asked COA to produce its audit observation memorandum on the Vice President’s CIF, and whether the state auditor had issued any notices of disallowance.

“We [need to know] if the funds were properly used,” Castro told the Inquirer in a separate statement. “If not and the COA has issued a recommendation of notice of disallowance, then the money has to be returned to the nation’s coffers and be used for social services like education,” she said.

Up until now, Duterte has yet to explain how the secret funds issued to her office and DepEd for the two fiscal years in question were spent. But she earlier said there was nothing irregular in the way the money was spent, adding that they had already submitted the required liquidation reports.

COA’s dilemma

Before the motion to issue a subpoena was approved by the House committee, Brosas argued that deliberations on the COA proposed budget for next year should be deferred unless it reveals its findings on the OVP and DepEd’s confidential funds.

In response, COA Chair Gamaliel Cordoba said they were unable to release their audit report due to the nature of the funds involved.

“Our position is that we will wait for the subpoena and then we will study the matter,” Cordoba told Quimbo.

In a separate statement, former lawmaker and Bayan Muna chair Neri Colmenares said they had uncovered information that the OVP spent P125 million in secret funds from Feb. 6 to March 29 last year, or within 52 days.

“Worse, she again spent another P125 million from April 25 to June 30 [last year] or just over two months,” he added.

During that period, Colmenares said the OVP spent P22 million for the “purchase of information” and another P27 million for “payment of reward” without explaining the two items.

Duterte also reported spending P82 million for “food aid,” which was not allowed under the law, according to the Bayan Muna official.

“Food aid is not intelligence work and cannot be a part of CIF expense. Since this supposed ‘food aid’ is not allowed for CIF spending, Congress must require the OVP to produce the receipt of this spending, as this is no different from auditable government projects distributing aid,” Colmenares said.