A Commission on Audit (CoA) official acknowledged before the Senate impeachment court on Tuesday that no government rule prohibited the Office of the Vice President (OVP) from spending P125 million in confidential funds within 11 days.

During cross-examination, defense lawyer Michael Poa pressed CoA auditor Roderick Wamil on whether the OVP’s rapid utilization of confidential funds in late 2022 violated any provision of the government rules governing A Commission on Audit (CoA) official acknowledged before the Senate impeachment court on Tuesday that no government rule prohibited the Office of the Vice President (OVP) from spending P125 million in confidential funds within 11 days.

During cross-confidential and intelligence funds.

Asked whether the joint circular on confidential funds prohibited the use of a quarterly cash advance within the 60-day liquidation period, Wamil replied in Filipino, “Wala” (No).

Poa then narrowed the question, asking if any rule specifically barred the OVP from spending the funds within 11 days.

“Wala din po,” Wamil answered. The witness added that the 11-day spending period was not among the audit findings raised by his team.

The P125 million was part of the P500 million in confidential funds granted to the OVP in 2022 — the first year the office received such an allocation — after Congress approved the request under the administration of President Ferdinand Marcos Jr.

The funds were released in December 2022 through transfers from the President’s contingency fund. Audit records later showed that one tranche amounting to P125 million was reported as fully utilized from 20 December to 31 December 2022.

During House hearings in 2024, lawmakers questioned how intelligence-related activities, payments to informants, and the preparation of supporting documents could have been completed within such a short period, particularly during the holiday season.

Preliminary findings

Poa also asked Wamil whether the audit observations constituted a conclusive finding that the confidential funds had been misappropriated.

The witness initially pointed to a provision in the joint circular stating that failure to liquidate funds upon due demand may constitute prima facie evidence that the money was put to personal use or was otherwise misused.

But after a series of exchanges, including objections from prosecutor Lorna Kapunan, impeachment court Presiding Officer Francis Escudero stepped in and posed the question himself.

Escudero asked whether the issuance of an Audit Observation Memorandum (AOM) constituted a failure to liquidate.

“No, Your Honor, there is no due demand in the AOM,” Wamil answered in Filipino.

The auditor explained that an AOM is a preliminary audit tool issued to seek explanations, clarifications, and supporting documents from an agency. It does not in itself establish that liquidation requirements had been violated.

Pressed further by Escudero on whether there was a failure to liquidate at the AOM stage, Wamil replied: “Not at the AOM but in the NS since there is a first issuance which is considered as demand.”

According to Wamil, a determination that an agency failed to liquidate funds arises only after the issuance of a Notice of Suspension, which serves as a formal demand from auditors.

Wamil also acknowledged that auditors do not make the final decision on whether expenditures should ultimately be disallowed.

“Our function is only recommendatory,” he said, adding that final action rests with the Commission on Audit itself.

Poa then presented records showing the OVP submitted its liquidation report for the fourth-quarter 2022 confidential funds within the 30 days required under the Joint Circular.

Wamil confirmed that the report was received by the CoA audit unit and accepted for processing in the first quarter of 2023.

Documents presented in court showed that on 17 January 2023, the CoA Intelligence and Confidential Funds Audit Unit (ICFAU) received the OVP’s liquidation report covering its fourth-quarter 2022 confidential funds. Wamil confirmed the report was received by the audit unit, citing the transmittal letter and ICFAU receiving stamp.

“Yes,” Wamil replied when asked whether CoA took “more or less eight months” to issue its finding.

House lawmakers cited the audit observations in scrutinizing acknowledgment receipts, listed recipients, and liquidation records, with several of the same findings later incorporated into the impeachment complaint against Duterte.