Confidential funds are not a blank check and remain subject to government auditing rules, House trial spokesperson and Lanao del Sur Rep. Zia Alonto Adiong said.
Adiong made the statement as the Senate Impeachment Court prepares to hear testimony this week on the Office of the Vice President’s and Department of Education’s use of P612.5 million in confidential funds, with the prosecution set to present three witnesses.
He stressed that confidential and intelligence funds are governed by strict regulations and cannot be treated as discretionary spending or shielded from scrutiny by the Commission on Audit (COA).
“Kailangan natin tandaan… itong confidential funds ay hindi ito discretionary fund. Meron itong regulation para sa paggamit nito. Hindi ibig sabihin na dahil pinatakpan mo dahil confidential, sabi mo, ‘Huwag ka na ‘yung magtanong o hindi dapat magtanong kasi ‘yung security ng ating mga informant,’ Hindi mo po pwedeng sabihin din ‘yun sa COA,” he said in a radio interview.
Adiong argued that the larger the amount involved, the greater the government’s responsibility to determine whether the funds were spent in accordance with existing regulations and achieved their intended purpose.
“Kaya kailangan malaman din ng taongbayan malaki ang gastos. The bigger the amount, the more deeper that the COA and the government also need to ask questions,” Alonto Adiong said.
He said one of the central issues in the prosecution’s case is whether the disbursement of confidential funds complied with Joint Circular No. 2015-01, which sets the rules for the proper use, liquidation, and reporting of confidential and intelligence funds.
The prosecution is expected to present COA state auditors who will explain why the acknowledgment receipts and supporting documents submitted by the OVP allegedly failed to comply with the joint circular, including requirements for validating confidential informants.
Adiong said that apart from determining how the funds were spent, the public also deserves to know what specific security or intelligence gains resulted from the P612.5-million expenditure.
“How would you be able to spend P612.5 million… Tatanungin natin… ano ba ‘yung naging accomplishment in terms of supporting the counter terrorism, for example, agenda and program of the government?” he asked.
He also agreed with Sen. Panfilo Lacson’s observation that confidential funds are ordinarily released based on operational requirements and needs rather than on a fixed quarterly schedule, as reportedly done for the OVP and DepEd in 2023.
“Ang magdidikta kasi ng utilization of confidential funds and intelligence funds is ‘yung case build-up na nangyayari… Hindi ‘yung para na siyang naka-calendar, na para na siyang MOOE, na para na siyang discretionary fund,” he said.
Adiong said the House prosecution panel has also prepared reserve witnesses with expertise in confidential and intelligence fund operations to help the impeachment court compare standard government practices with the spending patterns under scrutiny.
He added that the reported full utilization of the OVP’s and DepEd’s confidential funds stood out because government agencies do not typically exhaust such allocations.
Building intelligence networks and recruiting legitimate informants take time, making full utilization less common, he said.
“In fact, hindi agad sa lahat ng mga agencies na tatanungin natin, hindi nila nauubos ito. Kasi ang hirap kaya kumuha ng informant, ang hirap kaya kumuha ng mga asset mo,” Alonto Adiong said.
He also questioned why the identities of individuals such as “Mary Grace Piattos” and “Kokoy Villamin,” if they were legitimate intelligence assets, could not be properly disclosed to the COA for auditing purposes.
The House prosecution is currently presenting evidence under Article I of the articles of impeachment, which accuses Vice President Sara Duterte of misusing confidential funds while serving as vice president and education secretary.
State auditors are expected to testify this week on audit findings covering the P612.5 million in confidential funds released to the OVP and DepEd in 2022 and 2023.