COA Issues Notice of Disallowance for P375 Million in OVP Confidential Funds
The Commission on Audit (COA) has formally issued a notice of disallowance (ND) covering a substantial P375 million in confidential funds utilized by the Office of the Vice President (OVP) during the year 2023. This significant financial action was publicly disclosed by House Justice Committee member and Bicol Saro party-list representative Terry Ridon on Monday, April 20, 2026, bringing to light a major audit finding that has sparked considerable attention.
Details of the Disallowance and Order for Repayment
The ND, officially dated March 31, 2026, mandates that the OVP must return the entire P375 million amount to the government treasury. This sum was originally released in three separate tranches spanning from February to September 2023, indicating a sustained allocation over several months. The audit body's decision underscores a rigorous examination of how these confidential funds were managed and accounted for by the vice presidential office.
Primary Reasons for the Financial Disallowance
COA's audit revealed specific deficiencies leading to the disallowance. Of the total amount, P261,300,000 was disallowed due to several critical issues. Firstly, there was a failure to submit supporting documents that could evidence the success of information gathering and surveillance activities, accounting for P62 million. Secondly, insufficient documentation supported purchases of supplies and the provision of medical or food aid, involving P199 million. Additionally, cash advances utilized for reimbursement purposes amounted to P300,000, further contributing to the audit findings.
Individuals Held Liable for the Disallowed Amount
The Commission on Audit has identified multiple individuals as liable for the disallowed funds. Aside from Vice President Sara Duterte, the notice names former OVP Special Disbursing Officer Gina Acosta, former chief accountant Julieta Villadelrey, and the former head of the Vice Presidential Security and Protection Group (VPSPG). COA has directed these persons to settle the disallowance immediately, emphasizing that if not appealed within six months or 180 days from receipt, the disallowance will become final and executory under Sections 48 and 51 of Presidential Decree No. 1445.
Context and Previous Audit Actions
This development follows a notable incident where Vice President Sara Duterte chose not to defend her office's proposed budget for 2025 before the House of Representatives appropriations committee on Tuesday, August 27, 2024. During that hearing, she declined to answer questions regarding confidential funds allocated to the OVP in prior years, which now adds context to the current audit findings. Furthermore, COA had previously disallowed P73 million in confidential expenses of the OVP for the year 2022, indicating a pattern of audit scrutiny over the office's confidential fund usage.
The issuance of this notice of disallowance highlights ongoing challenges in the management and transparency of confidential governmental funds, raising questions about accountability and procedural adherence within high-level offices.
