MANILA — The Commission on Audit (COA) has ordered Vice President Sara Duterte and several high-ranking officials to return ₱448 million in “confidential funds” after a series of audits flagged the expenditures as irregular and unjustified.

In a Notice of Disallowance (ND) dated March 31 2026, COA rejected ₱375 million in spending related to three separate cash advances made between February and September 2023. This latest ruling comes on top of an earlier ₱73-million disallowance from 2022, bringing the total amount the Vice President is legally obligated to return to ₱448 million, should the ruling be sustained.

Unlike standard government budget cuts, a notice of disallowance signifies that the auditor has formally rejected an expense. Once final, the law requires the officials named to settle the debt using their personal wealth rather than the agency’s budget.

A ‘Pattern’ of Misuse

The findings from COA’s Intelligence and Confidential Funds Audit Office suggest a systemic failure to adhere to the strict transparency rules governing “black budget” spending.

Key violations cited in the report include:
• Undocumented ‘Rewards’: At least ₱62 million was reportedly paid out as “rewards,” but officials failed to provide any documentation proving that these payments led to successful intelligence or surveillance operations.
• Unsupported Procurement: Nearly ₱199 million was spent on supplies and provisions, yet these were backed only by simple “acknowledgment receipts” rather than the official invoices or receipts required by law.
• Unauthorized Personnel: Funds were allegedly released to individuals who were not authorized as accountable officers.
• Prohibited Reimbursements: Auditors found that some disbursements occurred before the cash advances were even granted, suggesting a “reimbursement” practice that is expressly forbidden for confidential funds.

The Question of Due Process

VP Duterte’s camp has previously suggested that the Office of the Vice President (OVP) was not given a fair opportunity to explain the spending. However, Bicol Saro Partylist Rep. Terry Ridon, a member of the House Justice Committee, has pushed back against these claims.

“Hindi totoo na walang due process na nangyari. May pagkakataon silang sumagot, at hindi naman ito nangyari ng isang beses lamang. Dumaan iyan sa audit observation memo at notice of disallowance, kaya malinaw na may proseso bago sila umabot sa puntong ito,” Ridon said.

The lawmaker emphasized that the failure was not in the system, but in the OVP’s inability to provide a factual basis for how the money was used.

“The real issue here is not the absence of process. Ang problema, hindi nila naipakita nang sapat ang mga report at supporting documents para maipaliwanag ang paggamit ng confidential funds,” he added.

Personal Accountability

The COA ruling is notably specific, identifying four individuals as personally liable for the ₱375 million: Vice President Sara Duterte, Special Disbursing Officer Gina Acosta, Chief Accountant Julieta Villadelrey, and VPSPG Head Col. Raymund Dante Lachica.

Ridon stressed that the financial burden falls on these individuals, not the institution they represent.

“Kapag naging final na ang finding ng COA, hindi na ito usapin ng opisina lamang. May personal na pananagutan na ang mga pinangalanan sa disallowance. Hindi ang OVP ang pinagsosoli ng pera—ang mga personalidad na tinukoy ng COA ang may obligasyon na magsoli,” he clarified.

The Vice President and her team now have six months to appeal the findings. If they fail to do so, or if the appeal is rejected, the disallowance becomes “final and executory” under law.

For critics, the scale of the funds—now approaching half a billion pesos—represents more than a technical accounting error.

“Kapag may final finding na, may proseso na nasunod, at may personal na pananagutan na itinakda, hindi na ito simpleng audit issue—ito ay usapin na ng pananagutan sa paggamit ng pondo ng bayan,” Ridon concluded.

📷 Inday Sara Duterte FB