VP Duterte questions COA ruling on confidential funds

Vice President Sara Duterte said that her right to due process was “violated” after the Commission on Audit denied her petition to review a notice of disallowance involving confidential funds used by her office.

Duterte argued in her appeal that the audit body failed to observe procedural fairness, saying state auditors immediately issued a notice of disallowance on the confidential fund expenditures in 2024, without first releasing an observation memorandum.

The COA, however, affirmed its earlier ruling disallowing around P73 million in confidential funds from the Office of the Vice President (OVP) for 2022, rejecting Duterte’s appeal.

“Their right to due process was never violated,” COA said.

“The petitioner’s right to due process was not violated when the amount of P3.5 million was disallowed in audit despite not previously raised in the AOMs (audit observation memorandum),” it added.

The audit body had previously flagged deficiencies in documentation and questioned the liquidation of the funds, prompting the issuance of the notice of disallowance. Under COA rules, disallowed amounts may have to be returned by accountable officials if deficiencies are not remedied.

Under the commission’s charter, a notice of disallowance is issued by state auditors when a government transaction is found to be “illegal, irregular, unnecessary, excessive, extravagant, or unconscionable.”

The notice in question pertains to confidential expenditures of the Office of the Vice President from 21 to 31 December 2022, including P69.78 million allocated for “rewards” and P3.5 million spent on furniture and equipment.

The P73.28 million flagged by the COA is part of the P125 million in confidential funds released to the Office of the Vice President in 2022, which auditors noted were disbursed over an 11-day period.

However, self-proclaimed vice presidential bagman Ramil Madriaga said on Tuesday that the funds were used in a day. 

“I read from several media reports that the P125-million OVP confidential funds in 2022 were reportedly utilized in just 11 days. This is wrong because I personally disposed of the money in less than 24 hours. Perhaps about 18 hours,” Madriaga said.