Manila: An acknowledgment receipt alone cannot justify the payment of rewards from confidential funds, the Commission on Audit (COA) clarified Thursday as it outlined tighter safeguards being considered for secret fund transactions, including verifying identities hidden behind aliases. During the Senate Committee on Finance hearing on COA's proposed 2027 budget, Commissioner Douglas Mallillin said rewards to informants must be supported by evidence showing that the information provided resulted in a successful intelligence or confidential operation.
According to Philippines News Agency, Mallillin emphasized that when a reward is involved, it must accompany success, and the auditing of such rewards demands increased scrutiny. He explained that payment for information is distinct from a reward, which requires approval by the agency head and documents establishing the successful outcome of the information-gathering or surveillance activity. Possible proof may include police affidavits, detention records, photographs, or other records linking the information supplied by an informant to a concrete result.
Mallillin stated that if only an acknowledgment receipt is submitted for a reward, it will be immediately disallowed because the success was not proven. He clarified that success does not necessarily require an arrest or conviction, but the agency must be able to document a positive result directly related to an authorized confidential activity.
The clarification came as COA acknowledged the need to revisit the 2015 Joint Circular governing confidential and intelligence funds. Mallillin said the commission and other agencies involved in crafting the rules have identified provisions that need stronger controls, including supporting documents, use of aliases or codenames, protection of informants, storage of records, and issuance of credit notices and notices of disallowance.
Among the options being studied is a mechanism under which the real identities behind aliases could be known to an authorized person, while COA may be given controlled access subject to appropriate clearances. Mallillin said the goal is to allow auditors to establish accountability without exposing informants or compromising national security and sensitive operations.
Senator Joel Villanueva highlighted the ambiguities exposed in the existing circular, emphasizing the need for an updated framework. Mallillin concurred, noting that accountability, substantiation, and identification have become increasingly critical in the handling of confidential funds. The 2015 circular was jointly issued by the COA, Department of Budget and Management, Department of National Defense, Department of the Interior and Local Government, and Governance Commission for GOCCs (Government-Owned and-Controlled Corporations).
Meanwhile, COA's proposed allocation under the 2027 National Expenditure Program stands at PHP16.047 billion, about PHP1.252 billion lower than the PHP17.299 billion originally proposed by the commission. Of the amount, PHP14.774 billion is for the agency-specific budget while about PHP1.272 billion is for retirement and life insurance premiums. The Senate Committee on Finance approved COA's proposed 2027 budget at the committee level, paving the way for its consideration during plenary deliberations.
