THE Commission on Audit (COA) disallowed the entire P375 million in confidential funds spent by Vice President Sara Z. Duterte’s office during the first three quarters of 2023 after finding irregular transactions and violations of confidential fund rules, a state auditor testified Tuesday.
COA-Intelligence and Confidential Funds Audit Office supervising auditor Xylene Mae del Campo told the Senate impeachment court that the Notice of Disallowance was issued March 31, 2026, covering three P125-million cash advances released to the Office of the Vice President (OVP).
Del Campo said a key basis was former OVP special disbursing officer (SDO) Gina Acosta’s sworn testimony before a House inquiry in November 2024 that, upon Duterte’s directive, she turned over the confidential fund cash advances to Col. Raymond Dante Lachica.
Lachica was then head of the Vice Presidential Security and Protection Group. He was not the OVP’s designated SDO.
Under Joint Circular No. 2015-01 governing confidential and intelligence funds, Del Campo said the SDO is responsible for disbursing the cash advance.
Item 6.1.1 of the circular provides that under no circumstance may a cash advance for confidential funds be transferred from one accountable officer to another.
Del Campo said Acosta’s admission showed a direct violation of that rule.
“This is a direct violation po ng joint circular, specifically ‘yung Item 6.1.1 po,” she testified.
The transfer made the transactions irregular and became a basis for disallowing the entire P375 million, Del Campo said.
COA also found P62 million in reward payments unsupported by documents showing successful information-gathering or surveillance activities.
Another P199 million involved purchases of supplies and the provision of medical and food aid that auditors could not establish from the acknowledgment receipts were actually spent for their stated purposes.
Del Campo said COA had sought additional documents to substantiate those expenses.
Auditors also found a P300,000 payment for information made before the corresponding cash advance was released.
The findings came after COA had issued Audit Observation Memoranda covering the OVP’s confidential fund spending for the three quarters.
Del Campo said the OVP responded to the audit observations and submitted additional documents, including acknowledgment receipts, certifications and Protective Intelligence Operations Reports.
But after evaluating the responses and supporting documents, she said the transactions remained noncompliant with the joint circular.
COA proceeded directly to a Notice of Disallowance instead of first issuing a Notice of Suspension because Acosta’s sworn admission showed that the confidential fund cash advances had been transferred in direct violation of the circular.
Del Campo said such a violation rendered the transaction irregular under COA rules on the settlement of accounts.
COA held Duterte, Acosta, OVP chief accountant Julieta Villadelrey and Lachica accountable for the P375 million.
Asked by private prosecutor Lorna Kapunan why Duterte was held accountable, Del Campo replied: “Because she approved po the transactions and the utilization of the cash advance po.”
Del Campo said Duterte’s approval appeared in the OVP’s accomplishment reports.
Acosta was held accountable as the designated SDO responsible for disbursing the cash advances, while Villadelrey had certified that the supporting documents submitted with the liquidation reports were complete and proper.
Lachica was included because he allegedly disbursed the cash advances despite not being the OVP’s designated SDO.
Del Campo said an accountable person, in layman’s terms, is someone who bears responsibility for public funds entrusted to them.
She described the OVP’s confidential fund transactions for the period as irregular.
“Sa OVP po, ito ay irregular po, dahil hindi po ito naging compliant sa joint circular,” Del Campo testified.
The March 31 Notice of Disallowance covers all P375 million released to the OVP from February to September 2023.
The OVP remains within the 180-day period to appeal the disallowance before the COA Commission Proper.
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