COA Auditor Testifies: OVP Confidential Funds Used for Personal Purposes

Manila, Philippines – A Commission on Audit (COA) official testified before the impeachment court on Wednesday that confidential funds allocated to the Office of the Vice President (OVP) were "personally used," a revelation that adds significant weight to the ongoing impeachment proceedings against Vice President Sara Duterte.

The testimony, delivered during a hearing that also examined confidential fund utilization at the Department of Education (DepEd), marks the first time a COA auditor has directly addressed the controversial expenditures in a formal impeachment setting.

Key Allegations in the Auditor's Testimony

The COA witness detailed specific findings from the audit of the OVP's confidential funds, alleging that:

• Disbursements were made without the standard documentation required for confidential fund liquidation
• Certain expenditures appeared to benefit individuals personally rather than serving legitimate government purposes
• The pattern of spending raised "serious red flags" regarding compliance with COA rules and regulations

The auditor's statements corroborate earlier reports from the Commission on Audit's 2025 annual report, which flagged irregularities in how the OVP handled its ₱500 million confidential fund allocation.

Broader Investigation into DepEd Funds

The hearing also expanded its scope to include confidential funds managed by the Department of Education during Duterte's tenure as secretary. Sources familiar with the proceedings indicate that similar spending patterns were observed in the education department's confidential fund utilization.

Legal and Political Implications

This testimony carries substantial weight in the impeachment proceedings. Under Philippine law, confidential funds are subject to strict guidelines requiring:

• Clear connection to national security or public order concerns
• Proper documentation and liquidation within prescribed periods
• Approval from designated authorities for every disbursement

Atty. Michael Fernandez, a former COA legal officer not involved in the case, noted: "When an auditor testifies about personal use of confidential funds, it elevates this from a political question to a potential criminal matter. The threshold for misuse of public funds is clear, and this testimony could be pivotal."

Historical Context

Confidential funds have long been a contentious issue in Philippine governance. While these funds are designed to provide flexibility for security-related operations, oversight bodies have repeatedly flagged them as vulnerable to abuse. The current proceedings represent one of the most high-profile examinations of confidential fund usage in recent history.

What Happens Next

The impeachment court is expected to call additional witnesses in the coming weeks, including former OVP staff members and financial officers. The defense team has signaled it will challenge the auditor's findings, arguing that confidential fund procedures differ from regular government disbursements.

Analysis: The Stakes for Philippine Governance

This case transcends the immediate political implications. It raises fundamental questions about accountability mechanisms for confidential funds across all branches of government. If the impeachment court finds merit in the COA's findings, it could trigger broader reforms in how these funds are monitored and audited.

Government accountability groups have already called for legislative changes that would require more rigorous reporting for confidential fund utilization, regardless of the impeachment outcome.

Outlook

The proceedings are expected to continue for several more weeks, with both prosecution and defense teams preparing extensive arguments. Political analysts suggest that the COA testimony could significantly influence public opinion, particularly given the auditor's role as an independent constitutional body.

For now, all eyes remain on the impeachment court as it weighs evidence that could reshape the political landscape and set precedents for fiscal accountability in Philippine governance.