Vice President Sara Duterte had sole control over the use of the Department of Education’s (DepEd) confidential funds during her stint as its secretary, according to her officials, amid allegations of irregularities in budget utilization.

The DepEd was allocated P150 million in confidential funds in the national budget for 2023, Duterte’s first full year in office.

DepEd Undersecretary for Finance Annalyn Sevilla explained that the proposal for such a fund was not included in DepEd’s initial budget proposal under the 2023 national allocation submitted to the Department of Budget and Management (DBM) in May 2022.

However, when the DBM submitted the 2023 National Expenditure Program to Congress, Sevilla noted that a line item for confidential expenses suddenly appeared.

It was also the first time in DepEd's history to have a confidential fund, according to Sevilla.

Former DepEd Undersecretary Michael Poa told a House panel on Thursday that Duterte had exclusive authority over confidential expense management. While his previous task included responding to an audit observation memorandum issued by the Commission on Audit, he said he had no role in the decision-making process related to the funds.

“It would probably be the Secretary or the ones responsible for the confidential funds… The Secretary and the SDO (Schools Division Office) are the only ones that are privy,” said Poa in response to lawmakers’ pressing queries on how DepEd utilized its multi-million secret funds.

Funds Misused?

An audit observation memorandum revealed that of DepEd’s P112.5 million in confidential expenses, P15.54 million was disallowed by the auditing body due to a lack of supporting documents showing the funds were spent on "rewards to informers."

Three Philippine Army commanders — Lt. Col. Manaros M. Boransing II, Lt. Col. Magtango Panopio, and Lt. Col. Carlos Sangdaan Jr. — confirmed they had issued certifications to DepEd for the Youth Leadership Summits (YLS) in 2023.

However, DepEd reportedly used these certifications for a different purpose — to justify the P15.54 million expense for informant rewards.

Boransing asserted that they would not have issued the certificate to DepEd if they had known it would be used to justify expenses that never passed through their office.

The military officials made it clear that their certifications were only for YLS activities, not to authorize any financial transactions related to informants.

They also denied receiving any funds from DepEd, adding that the Armed Forces of the Philippines and local government units shouldered most of the summit’s expenses.

Duterte headed DepEd for nearly two years until she resigned on 19 June.

The VP, who has been at the center of a congressional probe into purported irregularities in her office and DepEd’s funds, has repeatedly denied engaging in budget mismanagement.

She alleged that the probe aimed to "discredit" her ahead of the 2028 elections and claimed that House leadership planned to use its findings to build a case for her impeachment.

House leaders categorically denied Duterte’s accusations.