INVESTIGATION UNDERWAY. The House Committee on Good Government and Public Accountability conducted its eighth session on Monday, December 9, 2024, to delve into the alleged mismanagement of PHP612.5 million in confidential funds by the Office of the Vice President (OVP) and the Department of Education (DepEd) under Vice President Sara Z. Duterte. Lawmakers suggested that the handling of these funds might involve serious crimes, including plunder. (Image captured from the House of Representatives’ livestream)
MANILA – A member of the House of Representatives stated on Monday that the way the OVP and DepEd managed their confidential funds could potentially be classified as plunder.
During the hearing, Rep. Romeo Acop from Antipolo’s 2nd District explained that the funds were withdrawn in large sums and converted into cash on a quarterly basis by Special Disbursing Officers (SDOs), who then passed the money to so-called ‘security officers.’
Acop emphasized the gravity of the situation, stating, ‘The misuse or misappropriation of public funds, especially for personal gain, constitutes graft and corruption. Given the scale of the funds involved, this could be considered plunder.’
He highlighted that at the OVP, SDO Gina Acosta cashed out PHP125 million each quarter from late 2022 to 2023, while at the DepEd, SDO Edward Fajarda handled PHP37.5 million per quarter.
The SDOs admitted during the hearing that they were unaware of how these large quarterly withdrawals were spent.
Acop expressed frustration, saying, ‘It appears there’s an intentional effort to confuse, mislead, and obscure the truth about what happened with the OVP and DepEd’s confidential funds.’
Issues with Liquidation Reports
Rep. Ramon Rodriguez from the 1-Rider Party-list pointed out that the distribution of these funds violated the Commission on Audit-Department of Budget and Management (COA-DBM) Joint Circular No. 2015-001, which requires strict documentation and accountability.
Rodriguez noted, ‘Our hearings have shed light on long-standing suspicions: the confidential funds of the OVP and DepEd have been misused, possibly embezzled, or even stolen.’
He further explained that the officers involved exploited loopholes in and breached the Joint Circular, stating, ‘This is a serious issue involving public money, and without addressing these gaps and violations, we cannot hope for legal improvements.’
Rodriguez also mentioned that the SDOs were unable to account for the funds once they were handed over to security officers, thus failing to meet their responsibilities under Item 4.15.1 of the Joint Circular, which requires them to certify their accountability and the legitimacy of the expenses.
He criticized the use of backdated or hastily prepared acknowledgment receipts to justify the disbursements, suggesting that these were falsified to cover up the true timeline of the transactions.
Rep. Gutierrez revealed that the DepEd misused certifications from the Armed Forces of the Philippines (AFP) to justify spending PHP21.9 million on alleged informants. He also noted that the OVP spent PHP125 million in confidential funds within just 11 days in late 2022.
Potential Additional Offenses
Assistant Majority Leader Jil Bongalon raised concerns about technical malversation, explaining, ‘This occurs when public funds are used for a purpose other than what they were originally allocated for, even if it’s another public purpose.’
Bongalon warned that the penalty for this offense could be imprisonment ranging from six years and one day to 12 years, and that the law presumes malversation if an accountable officer cannot account for the funds.
Rep. Gerville Luistro from Batangas’ 2nd District highlighted instances of perjury during sworn testimonies, stating, ‘Any false statements made under oath are considered perjury.’
Rep. Johnny Pimentel from Surigao del Sur’s 2nd District pointed out the falsification of documents, specifically mentioning cases where fraudulent certifications were used to justify actions by public officers.