Manila: Transferring confidential funds from a special disbursing officer (SDO) to another person breaks the chain of accountability and exposes public money to possible misuse, a Commission on Audit (COA) auditor told the Senate impeachment court Wednesday.
According to Philippines News Agency, COA Intelligence and Confidential Funds Audit Office state auditor Xylene Mae del Campo made the clarification during questioning by Senate President Win Gatchalian on the handling of confidential funds of the Office of the Vice President (OVP) and the Department of Education (DepEd). Del Campo emphasized that when confidential funds are transferred from an SDO to another individual, the accountability chain is severed. This transfer could lead to funds being used for purposes other than those intended, posing a risk of misuse.
Del Campo explained that the SDO is responsible for disbursing a cash advance and should have direct knowledge of the funds being spent on confidential activities. Once the funds are handed to another person, the SDO loses this personal knowledge, weakening the certification that the expenses were necessary, legal, and used for confidential operations.
Gatchalian highlighted the OVP's PHP375-million confidential fund for 2023, which Del Campo said was disallowed after special disbursing officer Gina Acosta transferred the funds to Col. Raymund Dante Lachica. He also mentioned similar circumstances involving the OVP's fourth-quarter confidential fund in 2022 and the DepEd confidential funds, where cash advances were allegedly passed on to individuals other than the designated SDOs.
Del Campo agreed that applying the same audit rationale could lead to the disallowance of those transactions. She affirmed that if COA establishes the same circumstances, the entire PHP612.5 million in OVP and DepEd confidential funds could face disallowance.
She noted that COA is still considering whether previously settled DepEd accounts should be reopened, a process requiring the COA chairperson's authority and a review of voluminous records. Del Campo stressed that improperly disbursed confidential funds might ultimately need to be returned to the government.
Meanwhile, COA is studying the possibility of conducting a fraud audit of confidential fund transactions of the OVP and DepEd. Del Campo mentioned that the possibility is being considered after Senator-judge Bam Aquino questioned why unusual aliases in acknowledgment receipts had not triggered a fraud investigation.
Del Campo explained that COA's initial examination was a compliance audit focused on whether expenditures conformed with the applicable joint circular rather than verifying the identities of individuals listed in the acknowledgment receipts. She emphasized that each receipt should correspond to an actual person and the stated activity must have been carried out.
While the joint circular does not address the use of aliases, Del Campo stated that the primary requirement is that confidential funds must have gone to real recipients and been spent on legitimate confidential expenses.
