CoA: P73-M OVP fund disallowance final

The Commission on Audit (CoA) has “affirmed with finality” its P73.28-million disallowance of confidential funds spent by the Office of the Vice President (OVP) in 2022, rejecting the office’s motion for reconsideration.

The OVP said Wednesday it would pursue appropriate legal and institutional remedies, although it had yet to receive a copy of the 5 October resolution.

“The office has already anticipated the possibility of this decision and has prepared to respond through the appropriate legal and institutional channels,” the OVP said in a statement.

The disallowance covers confidential expenses incurred from 21 to 31 December 2022, following the release of P125 million in confidential funds to the OVP that month.

In its 5 October decision, CoA upheld the notice of disallowance issued on 22 April, saying the OVP’s arguments lacked merit.

Of the disallowed amount, P69.78 million was supposedly spent on surveillance activities, but the OVP failed to submit documents supporting the expenditures.

Another P3.5 million was spent on tables, chairs, desktop computers and printers, but the OVP failed to establish that the items were intended for confidential operations or activities.

CoA rejected the OVP’s claims that it was denied due process and that the audit failed to establish prejudice to the government.

State auditors said the expenditures were irregular because the OVP failed to comply with CoA-DBM-DILG-GCG-DND Joint Circular No. 2015-01, which governs the use of confidential and intelligence funds.

“The CoA, as the guardian of public funds, has the constitutional mandate of ensuring that government resources are accurately spent,” the resolution said.

CoA said it had required the OVP to submit additional documents to justify or clarify its compliance with the joint circular, adding that its failure to do so was tantamount to bad faith.

The audit agency also rejected the OVP’s reliance on acknowledgment receipts, saying these did not “amount to substantial compliance with CoA rules, the JC, and the [General Appropriations Act].”

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

On the refund, CoA identified Vice President Sara Duterte and OVP officials Gina Acosta and Julieta Villadelrey as 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 guideline read.

“The disbursement of large public funds deserves no less. Taxpayer money should always be spent with paramount consideration of full transparency and reasonable budget allocation,” CoA said.

The audit agency said the “reckless handling and accounting of public funds” had no place in government because it violated public trust.

The ruling has also figured in Duterte’s impeachment proceedings, with CoA officials testifying about the agency’s findings on the OVP’s use of confidential funds.

Despite the ruling, the OVP said it remained committed to its mandate “to develop and promote programs that uplift the lives of the Filipino people.”