MANILA, Philippines — Vice President Sara Duterte has formally challenged the Commission on Audit (COA), claiming she was denied due process regarding the disallowance of ₱73.28 million in confidential funds spent by her office in late 2022.
The Vice President’s appeal, filed alongside OVP Chief Accountant Julieta Villadelrey and special disbursing officer Gina Acosta, argues that state auditors bypassed mandatory procedures. However, in a decision released on April 10, 2026, the COA firmly rejected these claims, describing them as “bereft of merit.”
The core of the dispute lies in how the audit was conducted:
- The OVP’s Claim: Duterte argued that her right to due process was violated because the COA issued a Notice of Disallowance (ND) in 2024 without first releasing an Audit Observation Memorandum (AOM).
- COA’s Rejection: State auditors clarified that an AOM is not a legal prerequisite for an ND, especially when a transaction is deemed “illegal, irregular, unnecessary, excessive, extravagant, or unconscionable.”
- Substantiation Issues: The COA maintained that the OVP failed to provide sufficient documentation to support expenditures labeled as “rewards” and equipment purchases.
The ₱73.28 million is part of a larger ₱125-million confidential fund release that was famously spent in just 11 days in December 2022:
- “Rewards”: ₱69.78 million was classified as rewards, which auditors say lacked proper substantiation.
- Furniture & Tech: ₱3.5 million was used to purchase tables, chairs, desktop computers, and printers—items typically not covered by confidential fund guidelines.
- Testimony Controversy: The ruling follows bombshell testimony from former “bagman” Ramil Madriaga, who alleged he delivered bags of cash containing millions to various locations under the OVP’s orders within a 24-hour period.
The COA’s decision to uphold the disallowance has added significant momentum to ongoing impeachment efforts against the Vice President.
- Call for Return: Following the ruling, several lawmakers have called for the OVP to immediately return the ₱73.28 million to the national treasury.
- Impeachment Grounds: The House of Representatives Justice Committee is currently reviewing these audit findings as part of its investigation into alleged corruption and betrayal of public trust.
As the legal battle continues, the Vice President remains steadfast in her position, while the COA’s charter-backed authority remains a central pillar of the state’s accountability mechanism. The outcome of this standoff is expected to have lasting implications for the management of confidential and intelligence funds across the entire Philippine government.