Defense counsel Atty. Michael Poa cross-examines former Commission on Audit (COA) state auditor Roderick Wamil during the 12th day of the Senate impeachment trial against Vice President Sara Duterte at the Senate of the Philippines in Pasay City on Tuesday, Aug. 4, 2026.
Aram Lascano
A former 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 before the Senate impeachment court, defense lawyer Michael Poa pressed former Commission on Audit (COA) auditor Roderick Wamil on whether the OVP's rapid utilization of confidential funds in late 2022 violated any provision of the government's rules governing 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: "Wala po."
Poa then narrowed the question further, asking whether 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 Dec. 20 to Dec. 31, 2022.
During House investigations 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.
Poa likewise questioned Wamil on whether the audit observations amounted to a conclusive determination that 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 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) already constituted a failure to liquidate.
"Hindi pa po sa AOM, Your Honor, kasi wala pong due demand sa AOM," Wamil answered.
The former auditor explained that an AOM is a preliminary audit tool issued to seek explanations, clarifications and supporting documents from an agency. It does not by itself establish that liquidation requirements have been violated.
Pressed further by Escudero on whether there was already a failure to liquidate at the AOM stage, Wamil replied:"'Pag sa AOM po wala, pero 'pag sa NS po, since meron nang first issuance which is considered as demand, so meron na po."
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.
"Recommendatory lang po ang function namin," he said, adding that final action rests with the Commission on Audit itself.
Poa further presented records showing that the OVP submitted its liquidation report for the fourth-quarter 2022 confidential funds within the 30-day period required under the Joint Circular. Wamil confirmed that the report was received by the COA audit unit and accepted for processing during the first quarter of 2023.
Documents presented in court showed that on Jan. 17, 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.
The liquidation report covered the OVP's use of confidential funds during a period that included the controversial P125 million tranche reported as fully utilized between Dec. 20 and Dec. 31, 2022.
More than seven months later, on Aug. 24, 2023, lawmakers raised questions about the OVP's confidential funds during COA's budget briefing before the House of Representatives.
On Sept. 14, 2023, COA issued its first Audit Observation Memorandum (AOM) to the OVP, with a second AOM followed on Oct. 3, 2023.
"Yes," Wamil replied when asked whether COA took "more or less eight months" to issue its finding.
House lawmakers cited the observations in examining acknowledgment receipts, listed recipients and liquidation records, while several of the same audit issues were later incorporated into the impeachment complaint against Duterte.
In earlier proceedings, prosecutors presented evidence that COA's Commission Proper later affirmed the disallowance of P73.287 million in OVP confidential fund expenditures covering Dec. 21 to Dec. 31, 2022. The amount formed part of the same P125-million tranche that has been at the center of scrutiny.
