COA affirms P73.28-M OVP confidential fund disallowance

The Commission on Audit (COA) has “affirmed with finality” its decision to disallow P73.28 million in confidential fund expenditures incurred by the Office of the Vice President (OVP) in 2022.

In a decision released on 5 October, state auditors denied the OVP’s motion for reconsideration, finding that the arguments raised by the office lacked merit.

The notice of disallowance, issued to the OVP on 22 April this year, concerned the office’s failure to submit documents supporting surveillance activities for which P69.78 million was disbursed.

A separate P3.5 million was also charged to confidential funds and used to purchase tables, chairs, desktop computers and printers “without specifying that they were intended for the confidential operations/activities undertaken by the OVP.”

COA rejected several arguments raised in the motion for reconsideration, including claims of due process violations and alleged deficiencies in the audit findings regarding whether the questioned expenditures had prejudiced the government.

State auditors reiterated that the expenditures were irregular because the OVP failed to comply with the standards and requirements under COA-DBM-DILG-GCG-DND Joint Circular No. 2015-01.

“The COA, as the guardian of public funds, has the constitutional mandate of ensuring that government resources are accurately spent. In the discharge of its duty, it is guided by the fundamental principles governing transactions and operations of any government agency,” the resolution read.

The audit agency likewise rejected the OVP’s argument that the expenditures complied with provisions of the joint circular and that the disallowance was “bereft of any allegation or proof of any specific acts or omissions” amounting to gross negligence.

COA maintained that it had clearly indicated in its issuances that the OVP had to submit additional documents to justify or clarify compliance with the requirements of the joint circular, noting that noncompliance was tantamount to bad faith.

As to the refund of the disallowed amount, state auditors said Vice President Sara Duterte and OVP officials Gina Acosta and Julieta Villadelrey were directly liable under the Administrative Code of 1987.

“Every payment in violation of said provisions shall be illegal and every official or employee authorizing or making such payment, or taking part therein, and every person receiving such payment shall be jointly and severally liable to the Government for the full amount so paid or received,” the cited provision read.

State auditors also rejected the OVP’s attempt to justify the expenditures through acknowledgment receipts, saying the documents did not “amount to a substantial compliance with COA rules, the JC, and the [General Appropriations Act].”

“They are at best, farce, of no significance, and utterly subpart the scintilla of substance which needed to demonstrate the proper disposal of the OVPs CF,” COA stated.

“Disbursement of large public funds deserves no less; taxpayers’ money should always be spent with paramount consideration of full transparency and reasonable budget allocation,” it added.

COA asserted that the “reckless handling and accounting of public funds” had no place in government insofar as it violated public trust.

The DAILY TRIBUNE has reached out to the Vice President’s camp for comment on the development.