With finality: COA affirms disallowance of Sara Duterte’s P73-M confidential funds
MANILA, Philippines – The Commission on Audit (COA) affirmed with finality the disallowance of the Office of the Vice President’s P73-million confidential funds under Vice President Sara Duterte.
“WHEREFORE, the Motion for Reconsideration of Vice President Sara Z. Duterte; Ms. Gina F. Acosta, Special Disbursing Officer; and Ms. Julieta L. Villadelrey, Chief Accountant; all of the Office of the Vice President (OVP), is hereby DENIED. Accordingly, Commission on Audit (COA) Decision No. 2026-171 dated April 10, 2026, which affirmed COA Intelligence and Confidential Funds Audit Office Notice of Disallowance No. 2024-002-100 (2022) dated August 8, 2024, on the confidential expenses of the OVP, for the period from December 21 to 31, 2022, in the amount of P73,287,000.00, is AFFIRMED with FINALITY,” read the COA resolution made public on Wednesday, October 7.
COA issued a notice of disallowance to Duterte’s office over P69.78 million in spending for rewards and P3.5 million for the purchase of tables, chairs, desktop computers and printers. These expenses were made from December 21 to 31, 2022.
A notice of disallowance is issued for expenses which are “illegal, irregular, unnecessary, excessive, extravagant, or expenditure.”
The alleged misuse of confidential funds is among the allegations against Duterte in her ongoing impeachment trial. The House prosecution team has finished presenting its evidence on this article and is currently in the middle of discussing Duterte’s alleged unexplained wealth.
The commission also reiterated that Duterte, Acosta, and Villadelrey are personally liable for the disallowed amounts, and must therefore refund that money to the government.
“Clearly, the obligation to refund the disallowed CEs falls upon both those directly responsible, i.e., the approving, authorizing, and certifying officers; and those who actually received the disallowed amount,” COA said.
COA issued the ND in August 2024 due to the OVP’s failure to submit documents evidencing the success of information gathering, and for charging payments for tables and other supplies to the confidential funds “without specifying that they were intended for the confidential operations/activities undertaken by the OVP.”
This was based on the OVP’s failure to follow the liquidation requirements for confidential funds under COA’s Circular No. 2015-01.
In April, COA initially upheld the disallowance, and the OVP filed a motion for reconsideration in May 2026.
Duterte argued that the COA decision violated her constitutional right to due process, especially on the aspect of being given notice and the opportunity to be heard and explain her side. But the COA said there was no such a violation because upon receipt of the ND, Duterte immediately filed an appeal with COA.
Meanwhile, in the current ruling, COA reiterated that the OVP failed to comply with the necessary liquidation requirements.
“The Audit Observation Memorandum, the Notice of Suspension, and the ND clearly instructed the OVP Management to submit the required documents and necessary justifications or clarifications and to strictly comply with the requirements provided under the JC. Hence, their non-compliance with the JC is equivalent to gross negligence amounting to bad faith,” said COA.
As to the purchased chairs and other supplies, COA said Duterte failed to demonstrate how acquiring regular office supplies through normal procurement procedures would have compromised any specific confidential operation.
“Overall, when disbursements of government funds are not properly documented or supported by documents as required by the JC, then it can be considered as disbursed to the prejudice or damage to the government. The requirements for documentation were placed as safeguards to ensure that funds of this nature be expended for the purpose it was meant to,” the commission explained.
“Moreover, the transactions were not only irregular but also illegal,” it added.
In a statement, Duterte’s office said it has yet to receive a copy of the COA resolution dismissing its appeal.
“The office has already anticipated the possibility of this decision and has prepared to respond through the appropriate legal and institutional channels,” said the OVP. – Rappler.com
