Eleven days, ₱125 million, and an audit finding that has now survived appeal.
Malacañang on Friday, Oct. 9, challenged Vice President Sara Duterte to explain the Commission on Audit's final disallowance of ₱73.287 million in confidential fund expenditures by the Office of the Vice President, according to the Daily Tribune's Raffy Ayeng, reporting from Singapore. Palace Press Officer Undersecretary Claire Castro said the ruling raises serious questions about how the funds were spent and accounted for.
What COA decided
Per the Tribune, COA "affirmed with finality" the disallowance of ₱73.287 million out of ₱125 million in confidential funds released to the OVP in December 2022. The money was spent over 11 days, from Dec. 21 to 31, 2022.
Auditors found the OVP did not comply with the rules on using and liquidating confidential funds under Joint Circular No. 2015-01. They also flagged ₱3.5 million charged to confidential funds for tables, chairs, desktop computers and printers, which lacked sufficient documentation showing they were used in confidential operations. COA rejected the OVP's motion for reconsideration, including its claims of due process violations and its challenges to the audit findings.
The Palace's line, and the OVP's
Castro said Duterte should address the findings directly rather than dismiss questions about the handling of the funds. She criticized the Duterte camp for repeatedly claiming ignorance of questioned transactions, arguing that a presidential aspirant cannot consistently claim no knowledge of such issues, as relayed by the Tribune.
The Tribune's article does not quote Duterte. It refers to an Oct. 7 report in which the OVP said it would pursue appropriate legal and institutional remedies against the disallowance. That is a statement about process, not an answer to the question of where the ₱73 million went.
What this does and does not show
A disallowance concerns the validity and documentation of expenditures. By itself it does not establish criminal liability or prove that funds were diverted for personal use, as the Tribune notes. It does mean the state's auditors looked at the paper trail for the money, found it wanting, and, after an appeal, stood by that finding. It is also worth noting that the Palace is no neutral referee here: Duterte is the subject of an ongoing Senate impeachment trial, and Castro's remarks come with obvious political edge.
Still unanswered
No public breakdown has been reported of what the disallowed ₱73.287 million bought, who received it, or who is personally liable to return it. The OVP has not said what the "remedies" would be or on what timeline.
Context
Confidential funds are spent without the usual itemized disclosure, which is why the liquidation rules in Joint Circular 2015-01 exist. The OVP's 2022 release has been a flashpoint since the audit first questioned it. This story follows Pulpulitiko's continuing coverage of the impeachment trial, where bank records and the Vice President's SALN have been laid out side by side.
Sources
- Daily Tribune, Raffy Ayeng, "Palace presses Sara to explain P73-M confidential fund disallowance," Oct. 9, 2026 — https://tribune.net.ph/2026/10/09/palace-presses-sara-to-explain-p73-m-confidential-fund-disallowance