COA affirms disallowance of OVP’s P73-M confidential expenses in 2022

MANILA, Philippines – The Commission on Audit (COA) on Tuesday said it upheld its notice of disallowance (ND) on the Office of the Vice President’s (OVP) P73 million in confidential expenses for 2022, and issued corresponding NDs covering P375 million in liquidated confidential funds for 2023.

COA intelligence and confidential funds audit office head Gloria Camora bared the development during Tuesday’s House justice committee proceedings on impeachment complaints against Vice President Sara Duterte where she personally read the commission’s decision denying the Vice President’s appeal against the ND on the OVP’s 2022 confidential expenses.

READ: Citing OVP case, solons say COA nod doesn’t mean clean record

As defined by COA, An ND is an official document issued when the commission disapproves in whole or in part of a government transaction that is deemed irregular, unnecessary, excessive, extravagant, or illegal. 

It also identifies specific officials liable for returning public funds, serving as prima facie evidence of misuse or improper documentation

According to Camora during the hearing, the affirmed disallowance was on the confidential expenses of the OVP from December 21 to 31 in 2022, specifically the P69,787,000 used for the purchase of rewards and P3,500,000 used for the purchase of tables, chairs, desktops, computers, and printers. 

Camora said the disallowance was decided as the OVP failed to prove that the expenditures were used for confidential activities.

NDs also issued P375M confidential funds for 2023

Meanwhile, aside from the ND issued for 2022, Camora said COA has also already issued separate NDs for the OVP’s liquidation of confidential funds from the first to third quarters of 2023, amounting to P375 million.

Camora said the ND was issued after COA found the OVP’s non-compliance with Joint Circular No. 2015-01, or the guidelines on the entitlement, release, use, reporting and audit of confidential funds.

The COA lawyer, however, was not able to expound on the details of the ND as it has yet to be submitted before the House committee.

She did, however, note that the OVP still has 180 days to appeal these new NDs.

Restitution

Meanwhile, asked by Akbayan Rep. Chel Diokno whether the ND gives rise to an obligation on the part of the persons held liable to restitute—meaning, return to the government—the amount, Camora responded in the affirmative.

According to Camora, the liable individuals identified in the affirmed ND on the P73 million confidential expenses the was Vice President Duterte as head of the OVP; OVP’s special disbursing officer Gina Acosta; OVP chief accountant Julieta Villa del Rey; and OVP chief of security Raymund Dante Lachica. 

This means Duterte, along with the three other OVP officials are mandated to return the amount to the government. /jpv