DepEd in the dark on how VP Sara spent confidential funds

MANILA, Philippines — The Department of Education's finance unit is not aware of how Vice President Sara Duterte spent the department's P112.5 million in confidential funds in 2023.

DepEd Undersecretary Annalyn Sevilla told the House appropriations committee on Monday, September 3, that the finance department was not involved in the "process of utilization and liquidation" of the secret fund. 

After releasing three-quarters of the P150-million confidential fund lodged in the agency's 2023 budget, Sevilla said the finance unit "recorded [the confidential funds] as liquidated because we were given a copy of the cover letter only of the liquidation." DepEd did not release the remaining confidential funds for the fourth quarter of 2023 because no request was made.

Sevilla explained that DepEd adhered to the Commission on Audit's 2015 joint circular that governs the release of confidential funds through cash advances.

"There is a three-month requirement, that it (the confidential fund) should be released on a quarterly basis. The next is liquidation, which should be upon the head of the agency to the Commission on Audit,” she added.

What's the process? Confidential funds, as the name implies, cover expenses linked to confidential surveillance tasks within government agencies.  
 
Auditing confidential and intelligence funds mostly depends on the transparent and accurate submissions of government agencies with these funds. 

However, state auditors' 2015 joint circular requires agencies to present a detailed physical and financial plan when requesting such funds. This plan should include estimated amounts for each project, activity, and program.  

In DepEd's own words. DepEd's then-spokesperson Michael Poa said in January that the agency’s confidential funds are used for gathering information or intelligence to prevent the alleged participation of students in "illegal activities" by terrorist groups.

In 2022, DepEd defended the insertion of the secret funds in its budget by citing several "threats to the learning environment, safety and security of DepEd personnel." Using the funds, DepEd personnel and students were to be protected from sexual abuse, violence, corruption, drug involvement, child pornography and other unlawful issues that “require surveillance and intelligence gathering.” 

Duterte's renewed request for confidential funds for DepEd in the 2024 budget drew criticism from lawmakers, who pointed out that DepEd and other civilian agencies have "no business" engaging in surveillance activities. 

After facing public backlash, the House of Representatives decided to strip Duterte of her request for confidential funds and realign this to agencies focused on maritime defense. 

For 2025, Duterte did not request any confidential and intelligence funds for the Office of the Vice President. There was also no insertion of confidential funds in DepEd's proposed spending plan, which was submitted to the Department of Budget and Management prior to Duterte's resignation on June 19.

Duterte was replaced by former senator Sonny Angara on July 19.

Reason for resignation. Duterte said the government's "mishandling" of DepEd's 2024 budget was among the reasons why she stepped down as the department secretary, according to her interview with GMA News in August.

The vice president did not substantiate her statement but implied she could not handle DepEd's budget again in 2025 for this reason.

When asked about Duterte's remarks in an interview, Angara said he is leaving it up to state auditors to determine if there was any mishandling of the budget.