OVP rejects claim it spent P125M confidential funds in 11 days

The Office of the Vice President (OVP) on Monday refused to agree with a prosecution claim that it spent a ₱125-million confidential fund allocation within 11 days in December 2022, as the Senate impeachment court continued hearing Article I of the case against Vice President Sara Duterte.

During the 11th day of the impeachment trial, prosecution counsel Lorna Kapunan sought a stipulation from the defense that the OVP received ₱125 million in confidential funds on Dec. 20, 2022 and disbursed the amount within 11 days, citing records from the Commission on Audit (COA).

"No stipulation," Poa told the impeachment court.

Poa, however, agreed that the OVP was allotted ₱125 million in confidential funds in 2022. He proposed a counter-stipulation that the allocation had been approved by President Ferdinand Marcos Jr. Kapunan agreed that the funds were released with the President's approval.

The issue forms part of Article I of the Articles of Impeachment, which accuses Duterte of misusing ₱612.5 million in confidential funds allocated to the OVP and the Department of Education (DepEd), where she previously served as secretary.

The allegation that the OVP spent ₱125 million in 11 days first surfaced during House budget deliberations in September 2023.

During the hearing, then Marikina Rep. Stella Quimbo, who sponsored COA's proposed 2024 budget, responded to a question from Gabriela party-list Rep. Arlene Brosas regarding the use of the confidential funds.

"Hindi po ito nagastos within 19 days kundi 11 days po. The liquidation report by OVP was submitted by the OVP [to COA] in January 2023," Quimbo said.

The ₱125-million fund was released to the OVP in December 2022 after receiving presidential approval, despite the office not having a confidential fund allocation in the budget originally enacted for that year. The release later became a focal point of congressional inquiries into Duterte's use of confidential funds.

Adding to the controversy, COA subsequently issued a Notice of Disallowance covering ₱73.287 million of the OVP's confidential expenses incurred from Dec. 21 to 31, 2022. The questioned amount formed part of the ₱125 million that auditors said was disbursed and liquidated during the 11-day period.

In April, COA affirmed the disallowance after denying an appeal filed by OVP officials. Audit officials said the expenditures failed to comply with Joint Circular No. 2015-01, which governs the release, use and auditing of confidential and intelligence funds. Among the expenses flagged were nearly ₱69.8 million in rewards and ₱3.5 million worth of equipment purchases.

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

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