QUEZON CITY, Philippines — State auditors have permanently upheld the disallowance of ₱73.287 million in confidential expenses incurred by the Office of the Vice President (OVP) during a 10-day period in December 2022.
In an October 5 ruling, the Commission on Audit (COA) Commission Proper rejected the motion for reconsideration lodged by Vice President Sara Duterte, Special Disbursing Officer Gina Acosta, and Chief Accountant Julieta Villadelrey.
“Accordingly, Commission on Audit (COA) Decision No. 2026-171 dated April 10, 2026, which affirmed COA Intelligence and Confidential Funds Audit Office Notice of Disallowance No. 2024-002-100 2022) dated August 8, 2024, on the confidential expenses of the OVP, for the period from December 21 to 31, 2022, in the amount of ₱73,287,000.00, is AFFIRMED with FINALITY,” the decision read.
The contested expenditure consists of ₱69.787 million allocated for cash rewards, provisions, and medical supplies, along with ₱3.5 million spent on office equipment, including computers, printers, desks, and chairs.
Addressing the ₱69.787 million used for rewards and goods, state auditors underscored that payments to informers must be substantiated by proof showing the concrete outcomes of surveillance and information-gathering efforts tied directly to authorized confidential operations.
“The disallowed payments of rewards in cash, various goods, and medicines in the total amount of P69,787,000.00 require that the payments of rewards to informers must be supported with documents evidencing the success of the information gathering and/or surveillance activities on account of the information given by the informer, and that it must be directly related to the conduct of the specific confidential activities of authorized agencies,” COA said.
According to the audit body, the OVP failed to present any proof of successful intelligence efforts.
“What the OVP submitted was a List of Activities attended by the VP and the officers of the OVP satellite offices during the period from December 13 to 31, 2022. The list did not indicate or narrate particular accomplishments that resulted from the information gathered and/or surveillance activities, and that were directly related to the specific confidential activities undertaken,” it said.
Regarding the ₱3.5 million allocated for office furniture and IT equipment, COA noted that the OVP failed to demonstrate how these assets served confidential operations, pointing out that basic acknowledgment receipts were insufficient documentation.
“The tables, chairs, desktop computers, and printers were purchased using public funds; thus, the OVP mus prove the use of public funds for the purchase thereof. Official receipts (ORs) or sales invoices (SIs) are required as documentary evidence of payments (DEPs), and not merely acknowledgement receipts,” COA said.
As a result, the audit agency determined that Vice President Duterte, alongside Acosta and Villadelrey, holds personal liability for the improper disbursements.
Citing Section 43 of the 1987 Administrative Code, state auditors explained that officials who authorize and receive disallowed funds share joint and solidary liability to return the money to the government treasury.
“Clearly, the obligation to refund the disallowed CEs falls upon both those directly responsible, i.e., the approving, authorizing, and certifying officers; and those who actually received the disallowed amount,” COA said.
The commission emphasized the critical need for public accountability and strict fiscal compliance in managing government resources.
“Disbursement of large public funds deserves no less; taxpayers’ money should always be spent with paramount consideration of full transparency and reasonable budget allocation. Indubitably, these cannot be wantonly sacrificed on the altar of exigency inasmuch as reckless handling and accounting of public funds have no place in a government that endeavor to keep inviolate the trust of the people,” it also said.