MANILA, Philippines – The defense team of Vice President Sara Duterte floated during the impeachment trial’s 12th day on Tuesday, August 4, that there’s no rule that bars confidential funds from being spent in 11 days.

Duterte’s defense team’s cross-examination of Roderick Wamil, formerly with the Commission on Audit (COA)’s Intelligence and Confidential Funds Auditing Unit, centered on the COA’s Joint Circular No. 2015-01, which governs the auditing of confidential and intelligence funds.

Defense spokesperson and counsel Michael Poa asked Wamil if there’s a specific provision in the circular that bars the usage of confidential funds within a certain number of days.

“Meron po bang nagbabawal na gamitin ito (funds) in 11 days (Is there a provision that bars the use of funds in 11 days)?” Poa asked, referring to the circular.

“Wala rin po, kaya hindi po namin sinama sa findings namin ‘yong 11 days na disbursement (None, that’s why we did not include the 11-day disbursement in our findings),” Wamil confirmed.

The Senate impeachment court is in the middle of the trial on the House prosecution’s first article of impeachment, which is Duterte’s alleged misuse of her confidential funds under the Office of the Vice President (OVP) and Department of Education (DepEd).

Duterte’s use of her P125-million confidential funds in less than two weeks is one of the most controversial issues thrown at the Vice President.

“Actually, umamin naman ‘yong witness na hindi naman nila naging finding ‘yan (Actually, the witness confirmed that the 11-day disbursement was not in their findings),” Poa said during a press conference with reporters.

For 2022 and 2023, Duterte’s OVP received a total of P500 million in confidential funds, while DepEd got P112 million for 2023.

In 2024, the commission disallowed or flagged P73 million out of the P125 million OVP funds due to “non-submission of documents evidencing the success of information gathering/and or surveillance.”

It also flagged P3.5 million worth of tables, chairs, desktop computers, and printers for not “specifying that they were intended for confidential operations.” Last April, COA Intelligence and Confidential Funds Audit officer-in-charge Gloria Camora said the commission denied Duterte’s appeal on the P73-million disallowance.

As to the DepEd funds, the COA issued critical audit observations to the P112 million “due to deficient documentation and irregular purposes.”

Poa, during his cross-examination on Wamil, raised that COA’s disallowances and audit observations were just preliminary and not conclusive.

“I have always maintained my position that there is no misuse. There is no misappropriation. Walang napunta, na-divert sa Bise Presidente, but we will not be able to prove all of that. They will not be able to prove all that with just one co-witness. So, I’m sure marami pa po tayong pagdadaanan,” the defense spokesperson explained.

(No money went to or was diverted to the Vice President, but we will not be able to prove all of that. They will not be able to prove all that with just one co-witness. So, I’m sure we will tackle more things.)

Section 8.3 of the COA’s joint circular states: “Failure of the AO to liquidate any public funds for which he is accountable, upon demand by any duly authorized officer, shall be prima facie evidence that he has put such missing funds or property to personal use and benefit.”

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During his cross, Poa highlighted many points, such as the approval of the Office of the President of Duterte’s confidential funds and the inclusion of the OVP and DepEd’s 2023 confidential funds in the national budget.

“It was really a preliminary question just to establish ‘yong pinanggalingan ng pondong pinag-uusapan natin ngayon para na rin sa kaalaman ng publiko (the source of funds that we are talking about for the information of the public),” Poa explained.

Poa, during the Tuesday trial, also brought out COA Circular No. 92-385, which provides context on confidential and intelligence funds. The defense counsel highlighted a portion of this 1992 memorandum that states that “it is impractical and sometimes impossible to obtain such receipts, bills or commercial invoices during intelligence operations.”

However, counsel for the prosecution Lorna Kapunan argued that the COA’s 2015 joint circular superseded the 1992 memorandum. Specifically, Kapunan cited the repealing clause in the 2015 circular, which states that other issuances inconsistent with it had been repealed.

“I had my own position when I said the operative word here is inconsistent. But again, that’s for the appreciation of the impeachment court,” said Poa.

Referring to the flagged OVP and DepEd confidential funds, Kapunan said it seemed that the public had been “scammed.”

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The counsel for the prosecution mentioned the word during the trial, but it was stricken from the court’s records. Kapunan reiterated her “scam” remarks during an ambush interview with reporters.

“I just don’t think it was proper to do that, especially at this point na ang witness na pinag-uusapan natin ay AOM (audit observation memorandum) pa lang (that the witness’ testimony is only about AOM). To call it a scam is really a mischaracterization. That’s why I think the presiding officer also saw where I was coming from,” Poa said in response to Kapunan’s statements.

An AOM is issued by COA to offices to inform them about their audit deficiencies and require additional submissions within a certain period. An audit query memorandum, meanwhile, is issued “to answer questions that may either lead to a clarification or may lead to the issuance of an Audit Observation Memorandum or other appropriate notices.”

It was mentioned during the trial that COA had a meeting with OVP and DepEd officials to discuss the audit observations. Poa said that the parties clarified the contents of the 2015 joint circular.

He also clarified that when they asked whether an audit query could be issued instead of an AOM, it’s not meant to shield their offices or Duterte from auditing.

“Audit query is done in the private sector, but I did not know that they don’t do that in the government. So, they just told us we can’t do that,” Poa explained. – Rappler.com