MANILA, Philippines – The Commission on Audit (COA) has disallowed P375 million in confidential funds spent by the Office of the Vice President (OVP) in 2023, citing insufficient justification, missing documentation, and irregular disbursement procedures.
Documents shared by Albay Rep. Terry Ridon revealed that state auditors flagged the expenditures for failing to meet legal and procedural requirements governing the use of confidential and intelligence funds.
Ridon said the findings point to a continuing pattern of misuse under Vice President Sara Duterte, noting similarities with earlier audit issues involving the OVP’s 2022 confidential funds.
AUDIT FINDINGS: MISSING DOCUMENTS, QUESTIONABLE TRANSFERS
According to the COA’s Intelligence and Confidential Funds Audit Office, Duterte allegedly ordered special disbursing officer Gina Acosta to transfer fund disbursement responsibilities to Col. Raymund Dante Lachica, former head of the Vice Presidential Security and Protection Group.
The move, auditors said, violated existing rules under Joint Circular No. 2015-01, which restricts the use and handling of confidential funds.
The circular explicitly prohibits transferring accountability for cash advances between personnel and using such funds to settle prior obligations.
The Notice of Disallowance (ND), dated March 31, 2026, also cited the absence of critical supporting documents, particularly proof that payments to informants led to successful intelligence or surveillance operations.
Other expenditures, including purchases of supplies and relief items, were reportedly backed only by acknowledgment receipts, raising further compliance concerns.
OFFICIALS NAMED LIABLE; POTENTIAL REFUND NEARS P448M
COA identified four officials as liable for the disallowed amount: Duterte, Acosta, Lachica, and OVP chief accountant Julieta Villadelrey.
If the P375 million disallowance is upheld, Ridon said the total amount that may be required to be returned to government coffers could reach P448 million, including a previously affirmed P73 million disallowance for 2022 confidential funds.
Under COA rules, a notice of disallowance is issued when government transactions are deemed irregular, excessive, unnecessary, or unlawful.
OVP RESPONSE: LEGAL REMEDIES TO BE PURSUED
In a statement, the OVP confirmed receipt of the notice covering the 2023 confidential funds and said it would seek appropriate remedies in line with COA procedures.
However, the office noted it has yet to receive the final ruling on the 2022 audit findings, which have also been cited in ongoing House proceedings, and declined further comment.
‘BETRAYAL OF PUBLIC TRUST’
Ridon, a member of the House Committee on Justice, described the audit findings as more than a technical issue, warning that the scale and repetition of discrepancies raise serious accountability concerns.
“This is no longer just an audit matter. The magnitude and consistency of these findings point to a serious breach of public trust,” he said.
The alleged misuse of confidential funds is among the grounds cited in impeachment complaints filed against Duterte.
LINK TO CASH DELIVERY CLAIMS
The issue has been further fueled by testimony from Ramil Madriaga, a self-confessed intermediary, who earlier claimed he delivered P125 million in cash, allegedly sourced from confidential funds, to various locations in December 2022. He also named Lachica as one of his contacts.
Madriaga claimed the funds were disbursed in a single day, contradicting earlier reports that the distribution occurred over a longer period.
CONFIDENTIAL FUNDS EXCEED SECURITY AGENCIES
COA also noted that the OVP’s confidential fund usage in 2023 surpassed allocations of several key security and intelligence agencies, including the National Intelligence Coordinating Agency, National Bureau of Investigation, and Department of National Defense.
IMPEACHMENT HEARING TO FOCUS ON WEALTH DISCLOSURES
Meanwhile, the House justice panel is set to continue hearings this week, focusing on allegations of unexplained wealth and Duterte’s alleged failure to fully disclose assets in her Statements of Assets, Liabilities, and Net Worth (SALN).
Committee chair Rep. Gerville Luistro said key agencies, including the Office of the Ombudsman, the Bureau of Internal Revenue, the Securities and Exchange Commission, and the Anti-Money Laundering Council, are expected to present financial records and transaction reports.
Former senator Antonio Trillanes IV, who has long accused Duterte and her family of ill-gotten wealth, is also scheduled to testify.
Luistro said the hearings may conclude by April 29, after which the committee will vote on whether probable cause exists to proceed with impeachment and elevate the case to the House plenary.
BACKGROUND: ACCOUNTABILITY AND CONFIDENTIAL FUNDS
Confidential and intelligence funds are allocated to government agencies for security-related operations but are subject to strict auditing rules due to their sensitive nature.
The COA plays a key role in ensuring these funds are used lawfully and with proper documentation.
The controversy surrounding the OVP’s confidential funds has become a central issue in impeachment efforts against Vice President Duterte, highlighting broader concerns over transparency and fiscal accountability in government.