The Office of the Vice President (OVP) on Monday disputed the prosecution’s claim that it spent its P125-million confidential fund allocation within 11 days in December 2022, as the Senate impeachment court continued hearing Article I of the impeachment case against Vice President Sara Duterte.

On the 11th day of the impeachment trial, prosecution counsel Lorna Kapunan sought a stipulation from the defense that the OVP received P125 million in confidential funds on 20 December 2022, and disbursed the amount within 11 days, citing records of the Commission on Audit (CoA).

Defense lawyer Michael Poa, however, told the impeachment court, “No stipulation.”

But Poa agreed the OVP was allotted P125 million in confidential funds in 2022. He proposed a counter-stipulation that President Ferdinand Marcos Jr. had approved the allocation. Kapunan agreed that the President approved the release of the funds to the OVP.

The issue forms part of Article I of the Articles of Impeachment which accuses Duterte of misusing P612.5 million in confidential funds allocated to the OVP and the Department of Education (DepEd) when she was its secretary.

The allegation that the OVP spent P125 million in 11 days first surfaced during House budget deliberations in September 2023.

During those hearings, then Marikina Rep. Stella Quimbo, who sponsored CoA’s proposed 2024 budget, responded to a question from Gabriela Partylist Rep. Arlene Brosas regarding the use of the confidential funds.

“This wasn’t spent within 19 days but 11 days. The liquidation report of the OVP was submitted [to CoA] in January 2023,” Quimbo had said in English and Filipino.

President’s approval

The P125-million fund was released to the OVP in December 2022 after it was approved by the President, despite the office not having a confidential fund allocation in the budget originally enacted for that year. The release later became the focal point of congressional inquiries into Duterte’s use of confidential funds.

Adding to the controversy, the CoA subsequently issued a Notice of Disallowance covering P73.287 million of the OVP’s confidential expenses incurred from 21 to 31 December. The questioned amount formed part of the P125 million that auditors said was disbursed and liquidated during the 11 days.

In April 2023, CoA affirmed the disallowance after denying the appeal filed by OVP officials.

Audit officials said the expenditures did not comply with Joint Circular No. 2015-01 which governed the release, use, and auditing of confidential and intelligence funds. Among the expenses flagged were P69.8 million for “rewards” and P3.5 million for equipment purchases.

Under CoA rules, a notice of disallowance is issued when auditors determine that a transaction, in whole or in part, was irregular, unnecessary, excessive, extravagant, or contrary to law.

The impeachment court continues to hear evidence from both sides on the allegations.