By Pexcel John Bacon
THE COMMISSION on Audit (CoA) has denied with finality a motion by Vice-President Sara Duterte-Carpio and two Office of the Vice-President (OVP) officials seeking to overturn the disallowance of P73.29 million in confidential expenses in 2022, leaving them personally liable to refund the amount.
In a decision dated Oct. 5, the CoA Proper sustained its earlier decision that upheld the notice of disallowance issued against the OVP.
The ruling covers P73.29 million of the P125 million in confidential funds released to the OVP on Dec. 20, 2022 for expenses incurred from Dec. 21 to 31.
CoA held Ms. Duterte, Special Disbursing Officer Gina F. Acosta and Chief Accountant Julieta L. Villadelrey personally liable to refund the full disallowed amount.
Of the amount, P69.79 million was spent on informer rewards, including P10 million in cash, P34.86 million in goods and P24.93 million in medicines. Another P3.5 million was used to buy tables, chairs, desktop computers and printers.
CoA said the disbursements failed to comply with Joint Circular No. 2015-01, Presidential Decree No. 1445 and the 2022 General Appropriations Act.
“Disbursement of large public funds deserves no less,” the commission said. “Taxpayers’ money should always be spent with paramount consideration of full transparency and reasonable budget allocation.”
State auditors said the OVP had failed to provide documentary evidence showing tangible operational results from information supposedly supplied by eligible informers to justify the P69.79 million in rewards.
The OVP instead submitted lists of routine activities and a certification from the Vice Presidential Security and Protection Group. CoA said its personnel were active military officers and therefore ineligible to receive informer rewards under audit rules.
The commission also said the OVP submitted acknowledgment receipts instead of the required proof of payment, leaving the reward expenses unsupported.
“It is as plain as day that the acknowledgment receipts cannot amount to a substantial compliance with the CoA rules, the joint circular, and the General Appropriations Act,” CoA said.
It also questioned the P3.5 million spent on office furniture and information technology equipment, saying the OVP had failed to show how buying standard office equipment through regular procurement would have compromised confidential operations.
The commission rejected the officials’ claims of good faith and due process violations, ruling that their failure to comply with mandatory audit rules constituted gross negligence amounting to bad faith.
The OVP on Wednesday said it had yet to receive a copy of the Oct. 5 CoA resolution on its motion for reconsideration.
“The office has already anticipated the possibility of this decision and has prepared to respond through the appropriate legal and institutional channels,” it said in a statement.
The OVP said it remained committed to its mandate “to develop and promote programs that uplift the lives of the Filipino people.”
CoA held Ms. Duterte liable for approving the cash advance transactions, Ms. Acosta for disbursing the money and Ms. Villadelrey for certifying the supporting documents.
NEA SUBSIDIESMeanwhile, CoA separately flagged the National Electrification Administration (NEA) over P1.76 billion in subsidy funds granted to 56 electric cooperatives that remained unliquidated as of Dec. 31, 2025.
State auditors said the subsidies were released from 2014 to 2025 and remained unliquidated for periods ranging from three days to 11 years.
CoA also found that NEA had released P96.91 million to a delinquent electric cooperative despite its continued failure to comply with program rules.
“Due to NEA’s laxity in the enforcement of the provisions of the [memorandum of agreement], as well as other applicable NEA issuances, the unexpended subsidy funds have accumulated to P984.998 million and remained unsettled and unreturned,” state auditors said.
They said failure to recover the money had deprived the National Government of funds that could have been used for other electrification projects.
CoA called for the immediate recovery of nearly P1 billion in unspent subsidy funds that had accumulated and remained unsettled.
The subsidy findings were among issues cited in CoA’s qualified opinion on NEA’s 2025 financial statements.
Auditors found that P55.02 million in computer software and Microsoft licenses had been improperly classified as property, plant and equipment instead of intangible assets.
CoA also found P17.1 million in erroneous service income adjustments that affected NEA’s P5.27-billion accumulated surplus account.
“The verifiability and reliability of the deferred tax assets account under other assets with a balance of P29.777 million as of Dec. 31, 2025 cannot be determined,” auditors said, citing insufficient support for the amount and inadequate disclosures in the financial statements.
NEA also had P133.37 million in unsettled audit disallowances as of Dec. 31, 2025, according to CoA.
CoA recommended that NEA demand the immediate return of unused subsidy funds, properly classify its software assets and enforce applicable rules against electric cooperatives that fail to comply with program requirements.