THE total amount that may be ordered returned by Vice President Sara Z. Duterte and key officials of the Office of the Vice President (OVP) could reach ₱448 million, following a new Commission on Audit (COA) disallowance covering ₱375 million in confidential funds.
In a Notice of Disallowance (ND) dated March 31, 2026, COA ordered Vice President Duterte and other responsible officials to personally return ₱375 million, representing three separate cash advances of ₱125 million each for confidential expenses incurred between February and September 2023.
This comes on top of the earlier ₱73-million disallowance involving 2022 confidential funds, bringing the potential total exposure to ₱448 million, if sustained through the full COA process.
COA’s Intelligence and Confidential Funds Audit Office found that the expenditures failed to meet the requirements for valid confidential fund use under Joint Circular No. 2015-01, citing multiple and recurring violations.
Among the key findings:
Improper handling of cash advances – Funds were released to individuals who were not authorized accountable officers, in violation of rules prohibiting the transfer of cash advances.
Failure to prove success of confidential operations – Payments amounting to at least ₱62 million in “rewards” were disallowed due to the absence of documents demonstrating the success of intelligence or surveillance activities.
Unsupported procurement expenses – Nearly ₱199 million in purchases of supplies and provisions were backed only by acknowledgment receipts, instead of official receipts or invoices required for validation.
Prohibited reimbursements – Some disbursements were made prior to the grant of cash advances, indicating reimbursement practices expressly barred under the rules.
COA emphasized that confidential funds must be used strictly for legitimate intelligence activities and must be supported by adequate documentation, even when certain details remain confidential.
Crucially, the audit does not assign liability to the OVP as an institution alone.
Instead, it identifies specific officials as personally liable, including:
Vice President Sara Duterte
Special Disbursing Officer Gina Acosta
Chief Accountant Julieta Villadelrey
VPSPG Head Col. Raymund Dante Lachica
Under COA rules, all persons found responsible are required to return the full amount, underscoring that the obligation is personal—not institutional.
COA has directed the concerned officials to settle the ₱375 million immediately, warning that failure to appeal within six months will render the disallowance final and executory under Presidential Decree No. 1445.
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.
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 ₱448 million in disallowed confidential funds—squarely raise the issue of accountability and constitute a serious breach of public trust.
