Auditor: OVP charged tree planting, Christmas party to confidential funds
MANILA, Philippines — Several activities declared by Vice President Sara Duterte’s office as confidential expenses—including tree planting, wheelchair distribution, and Christmas parties—are not allowable under the joint circular governing the use of confidential funds, a state auditor testified.
During Tuesday’s resumption of Duterte’s impeachment trial, private prosecutor Lorna Kapunan continued her cross-examination of Commission on Audit (COA) auditor Xylene Mae del Campo, zeroing in on activities listed by the Office of the Vice President (OVP) in its liquidation reports for confidential fund expenditures in December 2022.
When Kapunan mentioned that some listed activities were Christmas parties and tree-planting activities, del Campo said these were not among the allowable uses of CFs under Joint Circular No. 2015-01.
When Kapunan asked her to read the activities listed by the OVP, del Campo said, “Under December 13, 2022, Department of Education — 2022 Partners Appreciation Night in Mandaluyong City, Metro Manila.”
“Wait, appreciation night? Based on your understanding, is this item a confidential activity or is it part of the confidential activities under the joint circular?” Kapunan asked.
“Based on the enumeration of where confidential funds should be used, this is not included,” del Campo replied.
Del Campo continued reading the activities the OVP listed as confidential expenses, including:
- December 15, 2022, Knights of Rizal Supreme Council, 60th Year of the Institute in Baguio City, Youth Campaign on Patriotism
- December 17, 2022, Christmas activity in Happyland, Tondo, Manila
- December 17, 2022, Christmas activity and exploration meeting of extension office, Barangay 101 in Tondo, Manila
- December 17, 2022, consultation with barangay chairmen ng Manila in Manila
- December 17, 2022, Pasasalamat and update meeting TODA in Barangay Batasan Hills, Quezon City
- December 17, 2022, Pasasalamat and consultation meeting with TNVS, Angkas, and Food Delivery in Quezon City
- December 17, 2022, Pasasalamat and update meeting with PWD sector in Quezon City
“Some of the activities here include thanksgiving events, coordination meetings, tree-planting activities, wheelchair distribution, gift-giving, medical missions, and other activities of the [OVP] satellite offices,” del Campo said.
The COA auditor also said none of these activities are among the allowed uses of CFs under Joint Circular No. 2015-01, as secret funds should be allocated only to confidential activities.
Kapunan asked, “In the joint circular you mentioned, can you remind us, what is the definition and purpose of confidential funds?”
“Confidential funds are the lump sum amount under the General Appropriations Act that should be used for confidential activities of an agency,” del Campo replied.
“And these activities you read — tree-planting, many Christmas parties, several awards ceremonies — are these allowed under the definition of confidential funds that you mentioned?” the lawyer asked.
“No,” del Campo said.
Del Campo mentioned Item 4.8 of Joint Circular No. 2015-01 several times. Under the provision, CFs can only be spent for the following purposes:
- Purchase of information necessary for the formulation and implementation of programs, activities and projects relevant to national security and peace and order
- Rental of transport vehicles related to confidential activities
- Rentals and incidental expenses related to the maintenance of safehouses
- Purchase or rental of supplies, materials and equipment for confidential operations that cannot be done through regular procedures without compromising the information-gathering activity concerned
- Payment of rewards to informers (non-employees of the concerned government agency), subject to the following conditions
- Uncovering/preventing illegal activities that pose a clear and present danger to agency personnel/property or other facilities and resources under the agency’s protection, done in coordination with the appropriate law enforcement agencies
- Others that may be authorized by the GAA or other special laws
Del Campo is the fourth witness presented by the prosecution for Article I of the Articles of Impeachment, which deals with allegations that Duterte misused CFs allocated to her offices from December 2022 to the third quarter of 2023.
Previously, the prosecution presented COA state auditor Roderick Wamil, who said P40 million of the OVP’s CF allocation for the fourth quarter of 2022 was used to buy medicines as rewards.
Wamil noted that these were disallowed because the ARs did not show documentary evidence of payment or other proof of success regarding the information-gathering and surveillance activities.
He also cited the same provision under Joint Circular No. 2015-01 as the reason the expenses were disallowed, saying the purchase of medicines was “not part of the enumeration under Item 4.8.”
On August 4, Wamil made the same observations on the OVP’s 2023 confidential expenses, saying Duterte’s office failed to provide documents evidencing payment and proving the success of its information-gathering or surveillance activities.
The OVP also used P42 million in the first quarter of 2023 and another P40 million in the second quarter to buy medicines.
Both del Campo and Wamil are from COA’s Intelligence and Confidential Funds Audit Office (ICFAO), which audits confidential allocations.
COA-ICFAO also issued notices of disallowance for the OVP’s P73 million CF for the fourth quarter of 2022 and its entire P375 million CF from the first to third quarters of 2023.
The ND on the P73 million CF expenditures has been affirmed by the COA en banc.
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