Duterte defends proposed P150 million DepEd confidential funds for 2024

MANILA, Philippines (Updated 5:26 p.m.)— Vice President Sara Duterte has again defended the necessity of confidential and intelligence funds in the proposed budget for the education department, arguing that the country’s biggest bureaucracy will need the fund to “mold children (to) defend” the country.

In an interview with reporters on Monday, Duterte, who is concurrently education secretary, explained the purpose of the proposed P150 million confidential and intelligence funds (CIF) for DepEd in 2024 in the context of the agency’s anti-insurgency efforts.

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“Education is intertwined with national security. It’s important for us to mold children who are patriotic, who will love our country and defend our country,” Duterte said, according to a video report by News5.

Duterte is also the co-vice chairperson of the government’s anti-communist insurgency task force, the National Task Force to End Local Communist Armed Conflict. 

During the interview, Duterte also refused to disclose how the lump sum will be spent, citing a government memorandum that prevents her from discussing its planned utilization.

Duterte has asked for P650 million in confidential and intelligence funds through both the Office of the Vice President (P500 million) and the DepEd (P150 million), based on the 2024 National Expenditure Program (NEP). In total, 20% of the proposed budget for OVP is set to go toward CIFs, which do not go through typical government auditing.

According to a report by The Philippine STAR, while the OVP did not get CIFs in its budget for 2022, a Commission on Audit report released this year shows that it received a P125-million allocation for confidential expenses through budget adjustments.  

The OVP said in a statement that it had used the funds “for (their) intended purpose and in accordance with the guidelines set by the national government.”

What are confidential and intelligence funds? 

CIFs are lump sum allocations set aside in the national budget to fund surveillance and intelligence information-gathering activities. 

Auditing CIFs is largely dependent on the transparent and accurate submissions of government agencies with these funds. However, a 2015 joint circular requires agencies to present a detailed financial plan when requesting such funds, including estimated amounts for each project, activity, and program.  

DepEd Spokesperson Michael Poa told ABS-CBN in an interview in January that the agency’s CIFs are used mainly to obtain information or intelligence to prevent the alleged participation of students in "illegal activities" by terrorist groups.

In 2022, DepEd defended the insertion of CIFs in its budget by citing several "threats to the learning enviroment, safety and security of DepEd personnel" other than insurgency. 

DepEd cited the need for the funds to protect DepEd personnel and students from sexual abuse, violence, corruption, drug involvement, child pornography and other unlawful issues that “require surveillance and intelligence gathering.”

Minority lawmakers last week hurled criticisms against the “widespread” allocation of CIFs in the proposed budget for 2024, which is set at around P10.14 billion. 

Rep. Edcel Lagman (Albay) said the legality of CIFs “does not justify the enormity and widespread allocations of these secret funds” in the proposed 2024 budget. Meanwhile, Rep. France Castro (ACT Teachers) said that agencies with “no business” of engaging in surveillance activities makes the utilization of CIFs irregular.

Budget allocations in the 2024 National Expenditure Plan will have to go through the approval of lawmakers in the House and the Senate before being enacted by the president. This would then become the country’s official national budget for 2024 through the General Appropriations Act.

Congress, which holds the power of the purse, exercises oversight and control over budget matters in government with the aim to prevent misuse or abuse of public resources by the executive branch.

Surveillance function questioned 

Castro questioned why the education department has to conduct surveillance activities.

"Is the DepEd now a police or military agency that is conducting surveillance operations on students and teachers? So based on this, should the Department of Education be called the Department of Surveillance,” Castro said in a mix of English and Filipino.

"It has not even scratched the surface in solving the learning crisis as well as providing adequate classrooms and a substantial salary increase for teachers as well as hire more teachers and now it is  conducting surveillance?" the lawmaker said.

During her campaign for the vice presidency in 2022, Duterte floated a proposal to require Filipinos who reach 18 years of age to serve in the Armed Forces of the Philippines and be given a stipend.

Castro said that she will push to reallocate the CIFs to other civilian agencies, particularly to programs related to early child care and development, which currently has P221 million.

This is “definitely not enough for the program," Castro said. — with reports by The STAR / Janvic Mateo and Xave Gregorio