Hse junked Sara's confidential fund request
By Nidz Godino
"As discussed, we will realign confidential funds of various civilian agencies…now is the time to give our intelligence community means to perform their duties, especially in these pressing times when we're facing serious concerns in West Philippine Sea," House appropriations committee chairman Rep. Zaldy Co said Vice President Sara Duterte-Carpio and Department of Education (DepEd) she heads will not have confidential funds in the coming year 2024 as lawmakers decided to realign amount totaling P650 million in 2024 national budget House of Representatives approved in record.
House appropriations committee has declared confidential funds sought by Office of the Vice President and DepEd have been realigned to agencies involved in intelligence work.
Duterte enjoyed large confidential funds reaching up to P460 million a year even during her stint as Davao City mayor, based on reports of Commission on Audit (COA).
"Country's safety and security are of paramount importance…to protect our territorial integrity from external threats, Congress is giving top priority to agencies directly in charge protecting country's safety and securing its borders," Ako Bicol party-list lawmaker stressed.
This was in line, he said, with "unanimous decision" of all party heads in House under leadership of Speaker Martin Romualdez to augment funding for National Intelligence Coordinating Agency, National Security Council, Philippine Coast Guard and Bureau of Fisheries and Aquatic Resources.
" CIFs from other departments and agencies will be realigned to NSA, NICA, PCG and BFAR to boost country's monitoring and operational capabilities in protecting our territorial waters and securing rights and access of Filipino fishermen to their traditional fishing grounds, so far that's what we have identified, but we're still looking at other sources, House leadership will exercise its mandate with care and determination to ensure public funds are used properly and where money is needed most for good of country," he said, referring to CIFs Duterte had pushed for OVP and DepEd. "."
Review , meanwhile, of COA's annual audit reports (AARs) on Davao City government from 2016 to 2022 showed it has been incurring confidential expenses amounting to hundreds of million pesos from time Duterte succeeded her father, former president Rodrigo Duterte, as local chief executive after May 9, 2016 elections.
AARs showed Davao City government's confidential expenses grew to P239 million in 2017 during first full term of younger Duterte as mayor, from P144 million in 2016.
Duterte officially assumed office as Davao City mayor on June 30, 2016. City's confidential expenses ballooned to P420 million in 2018, then to P460 million yearly from 2019 to 2022.
Duterte was succeeded by her brother Sebastian as Davao City mayor after May 9, 2022 elections.
AARs on local government units (LGUs) and national government agencies can be downloaded from COA website.
Davao City's confidential expenses were included in breakdown of its annual Maintenance and Other Operating Expenses. MOOE breakdown can be found under Notes to Financial Statement section of COA's AARs.
It was not stated in audit reports where exactly under Davao City government's funds its confidential expenses were sourced from.
Duterte is currently in hot water after it was revealed also through COA's AAR that OVP incurred P125 million in confidential expenses in 2022, from zero confidential expenses in 2021 during last full term of her predecessor, Leni Robredo.
COA said OVP's confidential expenses "pertain to expenses for safe implementation of various projects and activities under Good Governance Program and conduct of official engagements, and functional representation in international and domestic events as instructed by the President."
Revelation in audit report became controversial as OVP had no confidential and intelligence fund (CIF) allocation under Republic Act 11639 or 2022 General Appropriations Act (GAA).
It was later revealed P125 million fund came from Office of the President (OP), after Duterte wrote letter dated Aug. 22, 2022 to Department of Budget and Management, asking for total of P403.46-million budget augmentation supposedly to "ensure continuous operations of OVP under current year."
In her letter, Duterte requested for P250 million in confidential funds, saying that OVP is "committed to formulate programs, projects and activities relevant to national security and peace and order."
While OP only transferred P125 million in CF to OVP, several incumbent and former lawmakers, including Sen. Risa Hontiveros, former Senate president Franklin Drilon and Albay Rep. Edcel Lagman slammed budget augmentation as unconstitutional, as there was no allocation for such fund for OVP under 2022 GAA.
Lagman, leader of opposition Liberal Party, said transfer of funds from OP to another office like OVP was prohibited under Article 6, Section 25(5) of 1987 Constitution.
He said Constitution also provides transfer of funds for augmentation must come from savings of source office.
"Transfer for augmentation must be from savings of office concerned…it was admitted that in the President's contingent fund, only P50 million but release to OVP was P125 million," Lagman said.
"In other words, it was not from savings…moreover, OP, through its sponsor, repeatedly said release of amount was not from savings," he added.
It was also revealed during budget hearings at House of Representatives OVP spent P125 million CF it received from OP in just 19 days or from Dec. 13 to 31, which translates to about P6.5 million per day.
Duterte defended her office's spending of P125 million in confidential funds late last year, insisting it was spent in 19 days.
During budget deliberations on OVP proposed P2.385-billion 2024 budget, OVP's budget sponsor Davao de Oro Rep. Maria Carmen Zamora said it is "inaccurate" to say OVP spent P125 million fund in 11 days.
Marikina Rep. Stella Luz Quimbo revealed on Sept. 25 OVP spent P125 million in confidential funds in 11 days.
"Truth is, I was also surprised when I read news that it seemed to have been spent in 19 days… I asked COA looked at various reports, but it was not spent in 19 days but in 11 days," Quimbo said.
Quimbo had previously defended OVP's confidential funds.
When it comes to auditing confidential and intelligence funds, state auditors could only depend on transparent and accurate submissions of government agencies, making funds difficult to audit.
Zamora noted implementation of programs started on the day Special Allotment Release Order (SARO) was released on Dec. 13, 2022.
"This means immediately after release of SARO, implementation has already started but actual, as based on COA report and findings, only started Dec. 20 up to Dec. 31 which means actual implementation is not 11 days but it is 19 days," she said.
During an interpellation by Kabataan party-list Rep. Raoul Manuel, Zamora said OVP is requesting P500 million in confidential funds next year for "safe implementation of its programs and activities."
"OVP aims to bring its programs to other areas and with vision to target poverty reduction and threats to peace and order and achieve sustainable development and in support of these goals, surveillance activities will be undertaken, to assess security threats and ensure successful implementation of projects," she claimed.
But Manuel brushed this aside, arguing OVP's programs are "redundant."
"Proposal of OVP is not in line with intent of the House… programs they mentioned such as medical and burial assistance and food assistance are not directly related to defense of West Philippine Sea," he explained.
Manuel said it would be "prudent for House to reject proposal of OVP for confidential funds."
OVP thanked Zamora after House of Representatives terminated deliberations on OVP's proposed P2.385-billion 2024 budget.
Meanwhile, Lagman said President Marcos and Duterte may not be impeached despite possibly "unconstitutional" transfer of contingent funds from Marcos' office to OVP.
OP earlier admitted transferring P125 million to OVP in December 2022, but OVP considered it as confidential fund.
Lagman was responding to reporter's question, "unconstitutional but not impeachable?"
"When you say culpable, it is extreme case of liability… flawed… invalid but it may not be basis to say it was culpable violation of Constitution… invalid," he told reporters in chance interview after plenary debates for Department of Education's proposed 2024 budget were terminated.
Culpability is characterization required for impeachment.
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