MANILA, Philippines — A Commission on Audit (COA) auditor testified Tuesday that government rules presume confidential funds were used for an accountable officer’s personal benefit when the required liquidation documents are not submitted, a provision the prosecution said could apply to Vice President Sara Duterte.
Roderick Wamil, a former auditor with the COA Intelligence and Confidential Funds Audit Office, cited Paragraph 8.3 of Joint Circular No. 2015-01 during the second day of his testimony before the Senate impeachment court.
The provision states that an accountable officer’s failure to liquidate public or confidential funds under the officer’s custody constitutes prima facie evidence that the funds were used for the officer’s personal benefit.
Wamil also rejected the defense argument that the Office of the Vice President (OVP) did not have to comply with liquidation requirements because the confidential funds came from the Office of the President.
Asked by prosecution counsel Lorna Kapunan whether Duterte was the accountable officer for the confidential funds of the OVP and the Department of Education (DepEd), where she served as education secretary in 2023, Wamil said yes.
He said Joint Circular No. 2015-01 requires an agency head to oversee the use of confidential funds, ensure compliance with liquidation and reporting rules, and attest to certifications that the funds were used solely for authorized purposes.
DepEd funds
Wamil testified that DepEd failed to submit supporting documents for P112.5 million in confidential funds released during the first three quarters of 2023.
The amount consisted of three quarterly allocations of P37.5 million each. Duterte signed the agency’s physical and financial plan identifying the intended uses as counterinsurgency programs, abuse prevention and control in schools, anti-illegal activities operations, and anti-extremism or antiterrorism initiatives.
Wamil said DepEd submitted no documents establishing that the reported expenditures were actually incurred. The agency also failed to identify the specific confidential activities connected to the disbursements.
He said the lack of details prevented auditors from determining whether the reported accomplishments corresponded to authorized confidential operations.
OVP expenses
Wamil also cited deficiencies in the OVP’s liquidation of confidential funds.
He said the OVP’s first-quarter 2023 accomplishment report listed P42 million for medical and food assistance without supporting documents. It also reported about P10 million in incentives or travel-related expenses allegedly connected to confidential operations without receipts or other supporting records.
Wamil said the expenses could not be charged against confidential funds because they were not among the allowable expenses listed under Item 4.8 of Joint Circular No. 2015-01.
He also testified that the OVP failed to provide documents showing that intelligence-gathering or surveillance activities produced successful results before it paid rewards to informants.
The auditor reiterated that COA found no documentary evidence supporting confidential fund expenditures during the first and second quarters of 2023 and no proof of successful intelligence operations linked to reward payments.
‘Scam’ remark stricken
During the hearing, Kapunan characterized the prosecution’s evidence as more than prima facie proof.
“Your Honor… this is a scam,” she said.
Defense counsel Michael Poa objected and asked that the statement be removed from the record. Presiding officer Francis Escudero sustained the objection and ordered the remark stricken.
Poa later called Kapunan’s statement a “mischaracterization” and said Escudero was correct to remove it from the transcript.
Meeting with COA
Wamil also testified that he attended a September 2023 meeting with OVP chief of staff Zuleika Lopez, then DepEd chief of staff Poa, former COA Assistant Commissioner Nilda Plaras and state auditor Gloria Camora.
According to Wamil, Lopez and Poa asked COA to issue an audit query instead of an Audit Observation Memorandum if the OVP and DepEd liquidation documents were insufficient. He said this would have allowed the offices to submit additional documents before a formal audit finding.
Poa confirmed attending the meeting but said he could not recall making such a request. He said he was primarily a bystander because the discussion focused on the OVP and the interpretation of the joint circular.
No exemption for transferred funds
During redirect examination, Kapunan asked whether the source of confidential funds changed the liquidation and accountability requirements for the official who received them.
Wamil said it did not.
He testified that once confidential funds are released to an agency, its head remains responsible for ensuring that the money is used only for authorized activities and that all liquidation, documentation and reporting requirements are met.
He said Joint Circular No. 2015-01 contains no exemption for agency heads simply because the funds originated from another government office.
The prosecution argued that the testimony supports its position that Duterte remained accountable for confidential funds transferred from the Office of the President to the OVP.
Wamil is the prosecution’s third witness for Article I of the impeachment complaint, which accuses Duterte of misusing P612.5 million in confidential funds while heading the OVP and DepEd.
Earlier hearings examined COA findings questioning P375 million in OVP confidential fund expenditures in 2023 and P73 million in 2022 over unsupported disbursements, expenses outside allowable purposes and other documentary deficiencies.
The Senate impeachment court is scheduled to continue hearing Article I on Wednesday.