House panel looking at total of P612.5M in potential misuse of confidential funds by VP Sara Duterte’s OVP, DepEd

THE House Committee on Good Government and Public Accountability is looking at a total of P612.5 million in potential misuse of confidential funds managed by the Office of the Vice President (OVP) and Department of Education (DepEd), both led by Vice President Sara Duterte.

Manila 3rd District Rep. Joel Chua, chair of the panel regarded as the House counterpart to the Senate Blue Ribbon Committee, expressed frustration over what he described as “improper” and “unexplained” expenditures across two years, questioning whether the funds were responsibly used for their intended purposes.

“Ganun na lamang ang pagkadismaya marahil ng karamihan sa mga natutuklasan natin dito sa House Blue Ribbon Committee,” Chua said in his opening remarks. “Nakita natin dito kung papaano ginamit at ginastos ng [OVP] at ng [DepEd] ang pondong kompidensyal na ipinagkaloob sa kanila sa mga taong 2022 at 2023.”

Vice President Duterte served as DepEd Secretary from July 2022 until her resignation in July 2024.

Chua noted that the total amount under scrutiny is a substantial P612.5 million, as he stressed the need for clear answers regarding the confidential funds allocations and expenditures in both agencies.

“Marahil, pwede nang masabing improper ang gamit sa confidential funds ng mga ahensiyang ito,” he pointed out. “Upang mas mabigyan pa tayo ng linaw, nararapat na masagot ang katanungang ito: anong nangyari sa pera ng taong bayan?”

He added: “Sa totoo lang, P612.5 million ang kabuuang confidential funds ang ibinigay sa OVP ad DepEd sa loob ng dalawang taon. Nasaan na ngayon ang P612.5 million? Sino ang gumastos nito at para saan ito ginastos?”

Chua noted that only a few officials had come forward to testify, while the key figures directly responsible for confidential funds disbursements have yet to appear before the committee.

“Masasagot lamang ito ng dalawang tao: una, ang Head of Agency, which in the case of both the OVP and the DepEd, is the Vice-President, at ikalawa, ang Special Disbursement Officer (SDO) na sila Ms. Gina F. Acosta para sa OVP at Mr. Edward D. Fajarda para sa DepEd. Ngunit ni isa sa mga ito ay hindi nagpapakita sa atin,” Chua said.

Chua further revealed that Fajarda, previously an SDO at DepEd, had since transferred to the OVP. His absence, along with that of Vice President Duterte, has left many questions unanswered.

Of the P612.5 million under investigation, P500 million pertains to the OVP’s confidential funds
allocations, while P112.5 million went to DepEd.

The OVP received P625 million in confidential funds for late 2022 and all of 2023, with COA reviewing P500 million and noting significant irregularities.

In December 2022 alone, the OVP spent P125 million in just 11 days—from December 21 to 31—averaging P11.364 million daily, with COA disallowing P73.3 million of this for irregularities and ordering repayment from Duterte and two other OVP officials.

Additionally, COA issued three Audit Observation Memorandums in 2023, highlighting adverse findings on OVP’s quarterly confidential funds
use up to the third quarter.

One of the confidential funds expenditures raising significant concerns involved P16 million reportedly spent by the OVP on 34 safe houses over an 11-day period in 2022.

According to Chua, one safe house cost P1 million for a mere four-day stay, equivalent to P250,000 per day. “Sa P16 million na ito, makikitang may isang safe house na ginastusan ng P1 million base sa mga Acknowledgement Receipt para lamang sa apat na araw. Lumalabas na P250,000 per day ang upa at maintenance nito,” he said.

“Marahil kahit mag-check-in ka pa sa pinakamahal na hotel dito sa bansa ay hindi aabot ng ganito kalaki ang iyong bill,” he added.

In 2023, the OVP allegedly continued similar expenditures, with allocations of P16 million per quarter for safe houses in the first and second quarters, dropping to P5 million in the third quarter.

“Talaga bang kinailangan nila ‘yung mga safe house na ito? Legitimate po ba ‘yung paggastos nila dito?” Chua asked.

Chua also flagged P15 million in confidential funds expenses reportedly allocated by DepEd to Youth Leadership Summits and other anti-extremism programs, allegedly justified through certifications from Philippine Army battalions.

However, Army personnel who signed these certifications later denied involvement, revealing that they were unaware DepEd had used these documents to liquidate funds.

“Saan na ba talaga ginastos at napunta ang pera kung hindi naman pala ito ginastos para sa Philippine Army?” Chua asked. “Napag-alaman din natin na ang mga certifications mula sa infantry battalions ng Philippine Army ay ginamit upang palabasing may natanggap na mahigit P15 million ng confidential funds ang Army mula sa DepEd. Subalit mariing pinabulaanan ito ng mga mismong pumirma sa mga certifications.”

A February 2024 COA audit memo highlighted these discrepancies, flagging P15.54 million in informant reward expenses in the first two quarters of 2023 for inadequate documentation. COA called these expenses “bogus,” raising further questions about transparency and accountability in the handling of confidential funds.

Chua voiced his frustration with the current system, which he believes makes confidential funds highly susceptible to misuse.

“Malinaw na madaling abusuhin ang confidential fund kung masyadong maluwag ang mga panuntunan sa pag-gamit nito,” he stated, noting that COA’s role is currently limited to verifying document completeness without assessing document authenticity.

He cited the need to expand COA’s auditing powers over confidential funds to include verification of actual fund use, not just supporting documentation.

To address these gaps, Chua proposed the drafting of a new bill to regulate and ensure the proper use of confidential funds, based on the troubling patterns emerging from the committee’s investigation.

“The mission of the Committee is to craft a bill, considering these revelations, to regulate and ensure the proper use of confidential funds,” he said.

In closing, Chua emphasized that the inquiry is far from over. “This is just the tip of the iceberg,” he said, indicating that the committee intends to hold further hearings to continue investigating the questionable confidential funds expenditures and work toward transparency and accountability in government fund usage.