The Commission on Audit (COA) has ‘affirmed with finality’ the notice of disallowance (ND) it issued on the P73 million confidential funds (CF) of the Office of the Vice President (OVP).
In a resolution dated Oct. 5 and made public on Wednesday, Oct. 7, COA stated that it denied the OVP’s motion for reconsideration filed against COA’s Notice of Disallowance (ND) on Aug. 8, 2024.
The matter pertains to the OVP’s confidential expenses for the period from December 21 to 31, 2022, worth P73.287 million.
‘The Motion for Reconsideration of Vice President Sara Z. Duterte; Ms. Gina F. Acosta, Special Disbursing Officer; and Ms. Julieta L. Villadelrey, Chief Accountant; all of the Office of the Vice President (OVP), is hereby DENIED,’ the 15-page resolution read.
‘Accordingly, Commission on Audit (COA) Decision No. 2026-171 dated April 10, 2026, which affirmed COA Intelligence and Confidential Funds Audit Office Notice of Disallowance No. 2024-002-100 (2022) dated August 8, 2024, on the confidential expenses of the OVP, for the period from December 21 to 31, 2022, in the amount of P73,287,000.00, is AFFIRMED with FINALITY,’ it declared.
Of the amount subject to the notice, more than P 69 million (P69,787,000) was used for the purchase of rewards and P3.5 million for the purchase of tables, chairs, desktops, computers and printers.
OVP not surprised
In response, the OVP said it already expected the resolution.
The office has yet to receive a copy of this commission’s resolution.
‘The office has already anticipated the possibility of this decision and has prepared to respond through the appropriate legal and institutional channels,’ it said in a statement.
‘Nevertheless, the OVP remains committed to fulfilling its mandate-to develop and promote programs that uplift the lives of the Filipino people,’ it added.
According to COA, Duterte is liable to the ND for approving the transaction, including the use of the cash advance.
State auditors said OVP Special Disbursing Officer Gina Acosta was liable for acting as the payee for disbursing of cash advances.
On the other hand, they said OVP Chief Accountant Julieta Villadelrey certified that the supporting documents were complete.
‘Clearly, the obligation to refund the disallowed CEs (confidential expenses) falls upon both those directly responsible. i.e the approving, authorizing, and certifying officers, and those who actually received the disallowed amount,’ the resolution pointed out.
COA, in its 2009 Revised Rules of Procedure, defines ND as ‘the disapproval in audit of a transaction, either in whole or in part.’
Of the amount subject to the notice, the more than P69 million (P69,787,000) was used for the purchase of rewards, which were paid out as P10 million in cash, P34.8 million in various goods, and P24.9 million in medicines.
The rest of the funds or P3.5 million was allotted for the purchase of tables, chairs, desktops, computers and printers.
COA said these items ‘were allegedly purchased for and used in the safe houses, which were intended for surveillance operations.’
‘The ND was issued on the grounds of non-submission of documents evidencing the success of information gathering and/or surveillance activities to support the payments of rewards in cash, various goods, and medicines, in the total amount of P69,787.000.00,’ the resolution contained.
The document also reported about ‘the charging payments for tables, chairs, desktop computers and printers in the amount of P3,500,000.00 to the CF, without specifying that they were intended for the confidential operations/activities undertaken by the OVP.’
The OVP ‘merely’ submitted acknowledgement receipts to substantiate the expenses, which is ‘not substantial’ to the rules and COA and the law, according to the commission.
‘Disbursement of large public funds deserves no less: Taxpayers’ money should always be spent with paramount consideration of full transparency and reasonable budget allocation,’ the COA told the vice president’s office.
‘Indubitably, these cannot be wantonly sacrificed on the altar of exigency inasmuch as reckless handling and accounting of public funds have no place in a government that endeavors to keep inviolate the trust of the people,’ the ruling stressed.