Intel funds audit sought

CEBU, Philippines — The Cebu City Council is seeking answers from the Commission on Audit (COA) on P50 million in confidential and intelligence funds released under the administration of former mayor Raymond Alvin Garcia, including a P10-million disbursement made just three days before the turnover of power.

The move comes as the council scrutinizes Mayor Nestor Archival’s proposed P40-million confidential fund allocation for 2027, raising fresh questions about the use of public funds for intelligence and confidential expenses.

City Councilor Mikel Rama, chairman of the committee on laws, disclosed this following the council’s deliberation on a resolution filed by South District Councilor Paul Labra II that initially sought a special audit of the releases.

The resolution was later amended to request COA’s report and comments on the transactions, including whether they complied with existing laws and regulations governing confidential and intelligence funds.

"Kagahapon sa among regular session sa City Council, dunay nahitabo nga init nga deliberasyon bahin sa confidential funds sa Cebu City," Rama said yesterday.

He said the issue surfaced as the council reviewed the proposed confidential fund allocation for next year, prompting members to revisit questions surrounding previous releases.

The deliberations focused on two disbursements: P40 million released on Dec. 27, 2024, the last working day of the year, and another P10 million released on June 27, 2025, just days before the end of Garcia’s administration.

During the session, Councilor Jaypee Labella expressed reservations about immediately seeking a special audit, noting that confidential and intelligence funds are already subject to review by COA’s Intelligence and Confidential Fund Audit Unit under Joint Circular No. 2015-01.

Labella said the council should first obtain information from COA, pointing out that the audit process for confidential funds is already prescribed under existing regulations and that no notice of disallowance has been issued.

The discussion escalated when Vice Mayor Tomas Osmeña questioned the timing of the P10-million release, particularly its proximity to the end of the previous administration.

"I think the only one who can really investigate is Commission on Audit," Osmeña said.

"What will you do with P10 million in intelligence funds that was only just three days to go?" he added, stressing that raising questions should not be construed as passing judgment.

Following the debate, Labra agreed to amend his resolution to instead ask COA to provide a report and comment on the transactions, including whether they complied with the guidelines governing confidential and intelligence funds.

The amended resolution was subsequently approved by the council.

Rama said the council’s move underscores the need for transparency and accountability as it considers another P40-million confidential fund allocation under Archival’s proposed 2027 budget.

He said the discussion goes beyond the actions of a single administration and reflects broader public concerns over the use of confidential funds.

"Dako ang interes sa publiko bahin sa topic sa confidential funds. Init na kining gidebatihan sa national government ug karon gi-hisgutan na pud dinhi sa siyudad sa Sugbo," he said.

Rama said confidential funds serve a legitimate purpose in governance, particularly in peace and order operations, but acknowledged that questions from the public are inevitable because details of the expenditures are often restricted.

"Importante ang confidential funds sa pagkuha og impormasyon para sa peace and order ug national security, pero limitado ang mga detalye nga pwede mahibaw-an sa publiko," he said.

He noted that public officials are given considerable discretion in using such funds, making it natural for residents to ask how the money is spent and what results the expenditures produce.

"Dako sab ang diskresyon sa mga opisyal kon unsaon paggamit sa pondo. Mao nga natural gyud nga mangutana ang publiko kon asa gigamit ang kwarta ug unsa ang resulta niini," Rama said.

He stressed that accountability and confidentiality should not be treated as competing principles.

"Kinahanglan nato og balanse, protektahan ang sensitibong impormasyon samtang sigurohon nga sakto ang paggamit sa kwarta sa katawhan, ug ipahibalo sa publiko ang mga detalye nga pwedeng ipaambit," he said.

Budget documents submitted to the council show that Cebu City recorded P20 million in actual confidential fund expenditures from January to June 2026, with another P20 million projected to be spent before year-end, bringing expected utilization to P40 million.

"This is why there has to be accountability alongside confidentiality," Rama said, adding that protecting sensitive information should not prevent public officials from demonstrating that taxpayers’ money is being used properly. — /FPL (FREEMAN)