Philippine COA Upholds Disallowance of P73.3M Confidential Expenses for OVP

The Philippine Commission on Audit (COA) has upheld the disallowance of P73.287 million in confidential expenses incurred by the Office of the Vice President (OVP) under Sara Duterte in 2022, rejecting the OVP's appeal for reconsideration, according to Philippine Daily Inquirer and Rappler. COA found that these funds were not used for their intended purpose related to surveillance, intelligence, or peacekeeping but were diverted for other activities, including rewards and office supplies in December 2022.

Following this decision, COA also issued notices of disallowance for an additional P375 million in liquidated confidential funds for 2023, indicating that ongoing audits are examining further irregularities within the OVP's use of confidential funds. The Commission requires the OVP to refund the disallowed amounts to the government as part of its accountability measures.

Vice President Sara Duterte claimed she was denied due process during the COA's review of the confidential fund spending, a charge that the COA firmly rejected as without merit. Duterte's appeal was filed through OVP Chief Accountant Julieta Villadelrey, but the commission maintained the integrity of its audit findings.

The controversy has drawn attention from lawmakers, with Manila Representative Joel Chua highlighting the disallowance as a serious accountability issue during a House justice committee hearing. The committee has also subpoenaed former senator Antonio Trillanes and the Anti-Money Laundering Council to testify concerning Duterte’s purported unexplained wealth.

Observers will be closely monitoring the COA's ongoing audits into the OVP's 2023 budget and related proceedings in the justice committee, as outcomes could affect government transparency and the management of public funds moving forward. The requirement for the OVP to reimburse disallowed funds underscores the broader challenge of ensuring proper use of confidential government budgets.