COA flags misuse of OVP confidential funds for 2023, similar to 2022

THE Commission on Audit (COA) has flagged the misuse of P375 million in confidential and intelligence funds (CIF) by the Office of the Vice President (OVP) for 2023, echoing similar issues identified in the 2022 CIF disbursements under Vice President Sara Duterte.

This recurring lack of transparency has drawn criticism from lawmakers, particularly 1-Rider Party-list Rep. Rodge Gutierrez, who described it as a “repeated pattern of fund mismanagement.”

Gutierrez noted that this pattern has resulted in another Audit Observation Memorandum (AOM) from COA, which could escalate into a Notice of Disallowance (ND), as happened with the OVP’s 2022 CIF disbursements.

“Initial assessment ko, I think the basis was laid out properly, and nakita po natin sa initial deliberations pa lang, it’s unfortunate that we did not have the proper resource persons from the [OVP],” Gutierrez said in an ambush interview after Wednesday’s initial hearing of the House Committee on Good Government and Public Accountability into the OVP’s questionable budget utilization.

He added, “However, we were still able to ask the proper questions with COA. Although initial pa lang ito, it’s very telling kasi naging indication naman po, we had questions about the CIF during the budget hearing of OVP, and it seems that we have the same issues here.”

“The OVP’s CIF for 2023 reflects the same deficiencies as those highlighted in the 2022 report, indicating a troubling lack of accountability and transparency in handling these funds,” Gutierrez stated in a separate interview. “This is public money, not a personal slush fund. Repeated, templated reporting without detailed justification only raises suspicions of misuse.”

“When the same justifications are presented year after year for millions of pesos in taxpayer money, it raises serious questions about whether these funds are truly being used as intended or merely being spent without proper oversight,” Gutierrez added. “This repeated pattern opens the door for further audit scrutiny, and it’s only a matter of time before COA issues a formal Notice of Disallowance for the P375 million 2023 budget.”

During the hearing, COA representatives confirmed that P375 million out of the P500 million disbursed by the OVP for CIF in 2023 has also raised concerns. When asked if the issues with the 2023 disbursements were similar to those from 2022, COA officials acknowledged many similarities.

To recall, Vice President Duterte received P125 million in confidential funds, which her office spent in just 11 days in December 2022. Last month, COA issued an ND for P73.28 million of that amount, citing improper use and violations of government regulations.

“Most telling is the [ND]. We know na P73 million was flagged, and it was confirmed kanina na we have issues with the second batch, ‘yung P500 million confidential funds. That is something we have to look into,” Gutierrez said in an ambush interview.

“Apparently, out of the P500 million, if you recall, ‘yung P125 million hindi na-claim for the last quarter, so about P375 million remains, and mayroon din palang [AOM] for that,” he explained.

Gutierrez stressed that while the AOM is still in its initial stages, the similarities to the 2022 ND cannot be ignored.

“It is very telling po that there seems to be a pattern. Based on what COA reported, the offenses in the [ND] are the same offenses noted in the AOM. We have to consider, is there a pattern of misuse or misfeasance? Is this malfeasance even?” he questioned.

Gutierrez underscored the importance of accountability, pointing out that even though an AOM may not carry the same weight as an ND, it still signals serious concerns, as an ND could eventually require the return of the funds.

“It is still very telling that this pattern exists, and we need to determine if it is justified,” he stressed.

Gutierrez further warned that the OVP had been given multiple chances to explain and justify its CIF expenditures since 2023, but COA had to issue the Notice of Disallowance due to insufficient documentation. He stressed that if the Vice President cannot properly account for these funds, she could be required to return the disallowed amounts to the government.

“This is about accountability to the Filipino people,” the congressman emphasized. “We are talking about hundreds of millions in public funds, and the Vice President must be transparent. This isn’t just about the AOM or ND—it’s about making sure taxpayer money is being spent for the right purposes.”

Public scrutiny of the OVP’s CIFs has intensified, especially as ordinary Filipinos face economic challenges.

“Every peso from the national budget must be justified, particularly in these times of economic hardship,” Gutierrez concluded. “We cannot allow this level of irresponsibility to continue without consequences.”

As Congress prepares to deliberate on future budget allocations, Gutierrez urged his colleagues to scrutinize the OVP’s financial practices to ensure that public funds are used to genuinely benefit the Filipino people.