COA flags GAB's P3-M confidential fund releases

The Commission on Audit (COA) has flagged the Games and Amusements Board (GAB) for releasing P3 million in confidential funds in 2025 without securing the required approval from the appropriate supervising official.

In its annual audit report, COA found that cash advances released during the first three quarters of 2025 lacked the approval required under Joint Circular No. 2015-01 and the General Appropriations Act.

The funds were intended for GAB's Anti-Illegal Gambling Unit, which conducts surveillance and enforcement operations against illegal bookmaking and organized gambling.

State auditors said GAB officials believed the funds could be released with the approval of agency chairman Francisco Rivera alone.

However, COA noted that GAB falls under the Office of the President, where the Executive Secretary exercises supervisory authority over attached agencies.

The report identified Executive Secretary Ralph Recto as the official whose approval was required, while also calling for clarification from the appropriate authorities on the proper approving official.

“Considering that GAB is an agency under the Office of the President and that the Executive Secretary exercises supervision over agencies under the Office of the President…clarification from the appropriate authorities is necessary to establish the proper approving authority for confidential fund releases,” COA said.

Auditors also found deficiencies in the handling of documents supporting the confidential expenditures.

Disbursement vouchers and supporting records were reportedly submitted beyond the prescribed period and without the required sealed envelopes.

COA warned that these lapses increased the risk of exposing sensitive information and raised concerns over compliance with confidential fund accountability requirements.

The findings concern procedural and documentation deficiencies and do not, by themselves, establish that the money was diverted or misappropriated.