Manila: Senior officials from the Office of the Vice President (OVP) and the Department of Education (DepEd), under the leadership of Vice President Sara Duterte, requested state auditors to opt for a less formal 'audit query' instead of an Audit Observation Memorandum (AOM) regarding deficiencies in their confidential fund submissions, a Commission on Audit (COA) witness revealed on Tuesday.
According to Philippines News Agency, COA auditor Roderick Wamil, who was previously part of the COA Intelligence and Confidential Funds Audit Office (ICFAO), testified that the request was made during a meeting held in the second week of September 2023. The meeting included OVP Chief of Staff Zuleika Lopez and Michael Poa, a former DepEd chief of staff and spokesperson now part of Duterte's defense team, along with COA Assistant Commissioner and ICFAO head Nilda Plaras and audit team head Gloria Camora.
Wamil explained that he was present at the meeting due to his responsibility for auditing the confidential funds of both the OVP and DepEd. Lopez and Poa inquired about the requirements for the liquidation process as well as the necessary supporting documents as stipulated by Joint Circular No. 2015-01, which oversees the use and audit of confidential and intelligence funds. Plaras directed them to the joint circular and clarified that an AOM would be issued if deficiencies were discovered.
Wamil testified, "They asked if instead of an Audit Observation Memorandum, an audit query could be issued to them in case of audit findings." However, he noted that an audit query was not recognized as an official audit action under the joint circular. The ICFAO ultimately rejected the request, as it was not in accordance with Joint Circular 2015-01.
Wamil earlier testified that the OVP and DepEd did not provide documentary evidence to support their confidential fund payments for the first two quarters of 2023. He also mentioned that both agencies reported reward payments without documentation to verify that the information provided by informants led to successful intelligence or surveillance activities.
Specifically, for the OVP, Wamil identified PHP82 million in medical and food aid and PHP20 million in incentives or travel-related expenses, which he stated were unauthorized uses of confidential funds. He also pointed out PHP27 million in reward payments for the first two quarters that lacked evidence of successful operations. In the third quarter, the OVP reported another PHP35 million in rewards without attaching proof.
Wamil indicated that the DepEd similarly reported medical and food aid and incentives or travel-related expenses that fell outside the authorized uses of confidential funds. The DepEd's plans did not specify the confidential activities for which the funds were intended, broadly listing counterinsurgency, abuse prevention, anti-illegal activities, and anti-extremism or terrorism programs without identifying the specific schools, teachers, learners, communities, or alleged illegal activities involved.
Wamil further testified that the DepEd's disbursement vouchers and liquidation reports misclassified the spending as maintenance and other operating expenses (MOOE) instead of confidential fund expenses. He noted that MOOE is part of an agency's regular operating budget, whereas confidential funds are designated for confidential operations.
Additionally, Wamil pointed out that the DepEd's cash advances were approved by then-Undersecretary for Finance Annalyn Sevilla rather than Duterte, as required by the joint circular. Duterte's signatures appeared on the OVP and DepEd disbursement vouchers, liquidation reports, accomplishment reports, and certifications, which she certified as necessary, lawful, and incurred under her direct supervision. Duterte also certified that the purposes of the cash advances were accomplished.
Wamil reported that COA personnel later attempted to deliver an AOM to the OVP office, but it was not accepted as no authorized individual was available to receive it. The OVP subsequently submitted a revised accomplishment report to ICFAO later that day.
