GOVERNMENT officials formally entrusted with confidential funds could face serious administrative and criminal consequences if they fail to properly account for public money under their custody, a leader of the House of Representatives said.
Deputy Speaker Paolo Ortega V said that accountable officers are expected to know how funds are received, released, used, and documented, making claims of ignorance particularly damaging when questions arise over the handling of government money.
Former Office of the Vice President Special Disbursing Officer Gina Acosta testified that she turned over confidential-fund cash to Col. Raymund Dante Lachica, then head of the Vice Presidential Security and Protection Group, upon Vice President Sara Duterte’s instruction. Ortega said Acosta, as the accountable officer, was expected to know how the funds were released, transferred and used.
Ortega said responsibility does not end with employees who physically handled the money. He argued that senior officials also bear command responsibility because authority over the transactions originated from higher levels of the office.
Ortega, who represents La Union, also criticized what he described as the granting of ‘blanket authority’ to Lachica, a security officer who was not the bonded special disbursing officer officially responsible for the funds.
According to testimony, Acosta transferred the money to Lachica and subsequently left its implementation and use largely under his control. Ortega said such an arrangement raised concerns because the accountable officer should have continued monitoring the funds rather than surrendering responsibility after the cash was released.
He emphasized that the confidential nature of government operations does not make financial accountability confidential. Joint Circular No. 2015-01 governs the entitlement, release, use, reporting, and auditing of confidential and intelligence funds and establishes procedures for ensuring that public money can still be traced and accounted for. Ortega said the disbursing officer should have conducted proper back-checking and due diligence to determine how the funds were ultimately used.
The repeated inability of OVP officials to recall or explain important details concerning the confidential-fund transactions also raised questions about internal management and staff accountability. Ortega said government personnel entrusted with public funds are expected to perform the responsibilities attached to their positions regardless of the level of trust they place in their superiors. Simply following instructions, he argued, does not remove an employee’s obligation to verify and document the handling of public money.
Acosta and Ortonio were both declared hostile prosecution witnesses as the Senate Impeachment Court examined the request, release, implementation, and liquidation of confidential funds under Duterte.
The impeachment trial is set to enter its 20th day on September 1, with Col. Manaros Boransing II and Col. Magtangol Panopio expected to testify as prosecutors turn their attention to the alleged misuse of P112.5 million in Department of Education confidential funds during Duterte’s tenure as education secretary. Their testimony is expected to focus on military certifications used by DepEd in responding to COA findings concerning its confidential-fund expenditures.
Also, lawyer Michael Wesley Poa, Duterte’s former DepEd chief of staff and spokesperson and now a member of her impeachment defense team, is also scheduled to testify for the prosecution. Poa was involved in DepEd’s response to COA findings and reportedly played a role in obtaining and submitting the military certifications related to confidential-fund expenditures.
The prosecution is currently presenting evidence under Article I of the impeachment charges, which accuses Duterte of misusing a total of P612.5 million in confidential funds. This consists of P500 million released to the OVP from December 2022 through the third quarter of 2023 and P112.5 million released to DepEd in three P37.5-million tranches during 2023. The OVP received four P125-million tranches, while prosecutors continue to examine whether the documentation and implementation of these funds complied with government accounting and auditing requirements.