Three cash advances worth ₱125 million each, released to the Office of the Vice President (OVP) in 2023, have been declared void by the Commission on Audit following an examination that found widespread violations of rules governing confidential and intelligence fund spending.
The Notice of Disallowance, dated March 31, 2026, and bearing ND No. 2026-001-100(2023), was issued by the COA’s Intelligence and Confidential Funds Audit Office after auditors reviewed liquidation reports covering the period February 6 to September 30, 2023. The total amount disallowed — ₱375,000,000.00 — was given a zero allowance, meaning none of the expenditures passed audit scrutiny.
Among the specific violations cited, auditors found that cash advances were directed by Vice President Sara Z. Duterte to Special Disbursing Officer Gina F. Acosta, who then released the funds to Col. Raymund Dante P. Lachica, Head of the Vice-President Security and Protection Group (VPSPG). COA said this arrangement directly contravened Item 6.1.1 of COA-DBM-DILG-GCG-DND Joint Circular No. 2015-01, which explicitly prohibits the transfer of confidential funds from one accountable officer to another.
Reward payments totaling ₱62 million, spread across three quarterly periods in 2023, were also flagged for failing to establish proof that the underlying intelligence and surveillance activities actually succeeded. The joint circular requires supporting documents demonstrating the outcome of such operations before rewards can be authorized — documentation auditors said was absent from all submitted liquidation records.
A separate set of disbursements — ₱199 million in supplies and medical or food aid — was supported only by acknowledgment receipts. COA determined these were insufficient, stating that official receipts or sales invoices were necessary to verify the validity of the purchases, particularly given the scale of the expenditures.
Auditors additionally found two disbursements of ₱150,000.00 each, dated May 18 and July 6, 2023, that were made before the corresponding cash advance was even granted on July 13, 2023 — a practice the COA said constituted prohibited reimbursement under Item 6.1.2 of the same joint circular.
Four individuals have been named liable under the disallowance: VP Duterte, for approving the transactions and authorizing how the funds were used; Acosta, as payee and SDO responsible for disbursements; Chief Accountant Julieta L. Villadelrey, for certifying the supporting documents as complete; and Col. Lachica, for receiving cash advances despite not holding the SDO designation.
The disallowance was signed by Gloria A. Camora, State Auditor V and Officer-in-Charge. Proof of service records show that VP Duterte’s representative received a copy on April 8, 2026, Acosta’s copy was received on April 8 as well, and Villadelrey received hers on April 13, 2026. The service record for Col. Lachica shows no date of receipt.
Under Sections 48 and 51 of Presidential Decree No. 1445, any disallowance not formally appealed within six months or 180 days of receipt becomes final and executory.
