COA Flags Controversial ₱375 Million Confidential Funds Release
CONFIDENTIAL FUNDS – The Commission on Audit has issued a directive that could spark serious discussions on the use of confidential funds in government.
The Commission on Audit (COA) has ordered the Office of the Vice President (OVP) to return a total of ₱375 million in confidential funds used in 2023, according to newly released audit findings.
Based on reports published on Monday, April 20, 2026, the directive was detailed in a COA document dated March 31, 2026. The audit covers the period from February 6 to September 30, 2023, during which the OVP utilized the funds in question.
“We have audited the submitted liquidation reports (LRs) and its supporting documents for the cash advances of confidential fund (CF) of the OVP for the period February 6 to September 30 of Calendar Year (CY) 2023 as detailed below,” the report began.
According to COA, the OVP received confidential funds in three separate tranches, each amounting to ₱125 million. The first was released from February 6 to March 29, 2023, followed by a second release from April 25 to June 30, 2023, and a third from July 14 to September 30, 2023.
“Based on the results of our evaluation, with due consideration to subsequent information given under oath during the hearings of the Committee on Good Government and Public Accountability of the House of Representatives, the amount of P375,000,000.00 is hereby disallowed in audit,” the commission stated.
COA further explained that the disallowance stemmed from a violation of existing rules governing the use of confidential funds. The report cited a directive from Sara Duterte to Special Disbursing Officer Gina F. Acosta to release cash advances for confidential expenses to Col. Raymund Dante P. Lachica, head of the Vice-President’s Security and Protection Group.
“The directive given by the Hon. Vice-President Sara Z. Duterte to Ms. Gina F. Acosta to release/give the cash advances for confidential expenses to Col. Raymund Dante P. Lachica, the Head of the Vice-President Security and Protection Group (VPSPG), is contrary to Item 6.1.1 of COA-DBM-DILG-GCG-DND Joint Circular No. 2015 – 1 (Joint Circular) dated January 8, 2015,” COA said.
“6.1.1 Cash advances shall be used for specific legal purposes related to CF and/or IF. Under no circumstance shall it be used for liquidation of the previous cash advance or be transferred from one accountable to another,” it added.
The document also indicated that the directive had already been received by Vice President Duterte and concerned officials earlier in April 2026. As of the time of writing, neither the OVP nor the Vice President has addressed the matter.
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