COA disallows P375M in OVP’s secret funds
The Commission on Audit (COA) has flagged P375 million worth of confidential expenditures under the Office of the Vice President (OVP) in 2023 because they were not justified, lacked supporting documents, and disbursed by unauthorized personnel, documents shared by Bicol Saro Rep. Terry Ridon on Monday showed.
Ridon noted that, based on similar audit findings on the OVP’s confidential funds (CF) in 2022, this was not an isolated finding and indicated a pattern of misuse within Vice President Sara Duterte’s offices.
In documents shared by Ridon with House reporters on Monday, the COA’s Intelligence and Confidential Funds Audit Office stated that Duterte directed special disbursement officer Gina Acosta to hand over disbursement responsibilities to Col. Raymund Dante Lachica, former head of the Vice Presidential Security and Protection Group.
The COA’s notice of disallowance (ND) dated March 31, 2026, stated this was “contrary” to Item 6.1.1 of Joint Circular No. 2015-01 issued on Jan. 8, 2015, stating that “cash advances shall be used for specific legal purpose related to CF and or IF (intelligence funds).”
It further stated that “[u]nder no circumstance shall it be used for liquidation of the previous cash advance or be transferred from one accountable to another.”
The OVP, in a statement sent to reporters, confirmed that it has received the ND pertaining to the 2023 CF and “will pursue the appropriate remedies in accordance with COA rules.”
It, however, said it has yet to receive a copy of the final ruling on the 2022 CF, which was referenced during the April 14 hearing of the House of Representatives committee on justice. “Accordingly, we are unable to comment on the matter at this time,” it said.
No supporting documents
The COA also pointed to the lack of supporting documents such as evidence proving the payment of rewards to informants was successful in gathering information or in conducting surveillance activities.
It further noted that the purchase of supplies, and food and aid provisions was supported only by acknowledgment receipts.
Four individuals were named liable for the disallowed CF expenditures: Duterte, Acosta, Lachica, and OVP chief accountant Julieta Villadelrey.
In a statement, Ridon said that if the disallowance on the P375 million is upheld, this would raise the amount that Duterte and her staff members must return to government coffers to P448 million.
The COA previously affirmed the notice of disallowance for the P73 million CF under the OVP in 2022.
State auditors issue a notice of disallowance to government transactions they deem as irregular, unnecessary, excessive, extravagant, or even illegal.
Pattern of misuse
Ridon, a member of the House justice committee, said the pattern of CF misuse within Duterte’s offices, as shown in the COA reports, is tantamount to “a betrayal of public trust.”
“This latest disallowance is not an isolated finding. It demonstrates a continuing pattern of confidential fund misuse marked by the same fundamental defect: the repeated failure to justify the expenditures with sufficient legal, factual, and documentary basis,” he said.
“At this point, the issue can no longer be framed as a technical audit matter. The scale and repetition of these findings—now potentially reaching P448 million in disallowed confidential funds—squarely raise the issue of accountability and constitute a serious breach of public trust,” he added.
Duterte’s alleged misuse of her office’s CF is one of grounds in the impeachment proceedings initiated against her.
Ramil Madriaga, Duterte’s confessed bagman and a key witness, earlier named Lachica as one of the persons he worked with in delivering bags of cash amounting to P125 million to different locations in December 2022. The money was allegedly drawn from Duterte’s CF.
Madriaga claimed the amount was disbursed in one day and not over 11 days as earlier reported.
The COA earlier noted that the confidential funds used by the OVP in 2023 even exceeded that of security and law enforcement agencies such as the National Intelligence Coordinating Agency with P127.4 million; the National Security Council, P90 million; the National Bureau of Investigation, P146.1 million; the Department of National Defense, P78.9 million; and the Department of the Interior and Local Government, P75 million.
Wednesday hearing
The justice panel’s next hearing on Wednesday on the impeachment complaint against Duterte, meanwhile, will focus on allegations of unexplained wealth and the failure of the Vice President to fully disclose personal wealth in her statement of assets, liabilities, and net worth (SALN), Batangas Rep. Gerville Luistro said.
Luistro, the committee chair, told House reporters in an online interview that the Office of the Ombudsman is expected to present Duterte’s SALNs.
The Bureau of Internal Revenue is also scheduled to present the income tax returns of the Vice President and her husband, Manases Reyes Carpio, while the Securities and Exchange Commission is set to provide audited financial statements of the couple’s declared business establishments.
The Anti–Money Laundering Council has also been invited to report transactions made by the Vice President and her husband.
Former Sen. Antonio Trillanes IV, who has accused Duterte and her family of having ill-gotten wealth, will also be present.
Luistro said it was possible that hearings would be concluded on April 29 if no additional dates would be requested by members. They will then proceed to vote on whether there is probable cause to impeach the Vice President and send the report to the plenary for consideration. —WITH REPORTS FROM DEMPSEY REYES AND INQUIRER RESEARCH
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