COA cleared DepEd over P75-M confidential funds issue – Sara Duterte’s defense

AUDIT. COA auditor Xylene Del Campo testifies during the impeachment trial of Vice President Sara Duterte on August 11, 2026. Jam Sta Rosa/Pool via Reuters COA state auditor Xylene del Campo confirms that the Commission on Audit has cleared the Department of Education over its P75 million in confidential funds during the 14th day of Duterte's impeachment trial MANILA, Philippines – The defense team of Vice President Sara Duterte found an unlikely piece of ammunition during the prosecution’s direct examination of its witness from the Commission on Audit (COA) on Tuesday, August 11. State auditor Xylene del Campo from the COA’s Intelligence and Confidential Funds Auditing Unit confirmed during the trial’s 14th day that the Department of Education’s (DepEd) confidential use was cleared by the COA through a credit notice. “Based po sa evaluation, ito po ay compliant sa Joint Circular [No. 2015-01]…. For the first and second quarter po ng 2023 ng DepEd, we issued a credit notice (Based on our evaluation, the liquidation is compliant with the Joint Circular No. 2015-91. For the first and second quarter of 2023, we issued a credit notice to the DepEd),” Del Campo told counsel for the prosecution Lorna Kapunan. “This (credit notice) is issued pagkatapos ng evaluation ng documents. ‘Yong liquidation documents are found in order and passed in audit na (This is issued after the documents’ evaluation. The liquidation documents are found in order and passed audit already),” she added. Duterte’s P112.5-million confidential funds as DepEd secretary were flagged by COA through an audit observation memorandum or AOM. An AOM is issued to offices to inform them about their audit deficiencies and require additional submissions within a certain period. These DepEd confidential funds were released in three quarters, P37.5 million each. COA has already cleared DepEd over its questions on the first two quarters, while the questions for the third quarter are still pending. “Dati pa namin sinasabi ‘yan, kahit [sa] mga committee hearings pa lang, na talagang may credit notice ang DepEd…. But ‘yan ang fact. I think it was [on] August 9, 2024, when DepEd received its credit notice,” defense spokesperson and counsel Michael Poa said. (We’ve been saying this all this time, even during committee hearings, that DepEd has a credit notice. That’s the fact. I think it was on August 9, 2024, when DepEd received its credit notice.) The House prosecution’s first article of impeachment focused on Duterte’s alleged misuse of her confidential funds under the Office of the Vice President (OVP) and DepEd. COA disallowed or disapproved the liquidation of OVP’s 2022 (P73 million) and 2023 (P375 million) confidential funds. But since COA cleared DepEd, will this weaken the prosecution’s case? “Ayokong bigyan ng any comment ‘yong kaso ng prosecution because it’s up to them to prove that, and, obviously, they will have a different opinion…. Ang sinasabi lang natin, actually, hindi ito first time. Matagal na naming sinasabi na may credit notice ang DepEd. It’s just hindi siya na-highlight,” Poa told reporters. (I don’t want to comment on the prosecution’s case because it’s up to them to prove that, and, obviously, they will have a different opinion. What we’re saying is actually, this is not the first time. We’ve been saying that the DepEd has a credit notice. It’s just that it’s not being highlighted.) Review? However, during the trial, Del Campo said settled accounts through a credit notice may be reopened over certain reasons. “Under the RRSA (Rules and Regulations on Settlement of Accounts), [an] account settled can be reopened if, before the expiration of three years after the settlement, [if the] transaction is tainted with fraud, collusion, and new material evidence was discovered during the three-year period,” Del Campo said in a mix of English and Filipino. Meanwhile, Tuesday’s trial also revealed that the OVP has yet to respond to the COA’s notice of disallowance for 2023. Poa explained that they have 180 days to reply to the audit observations. “I think it’s around October, ‘yong expiration ng 180 days, if I’m not mistaken. So, kumbaga, hindi sa hindi nag-responde ang OVP. Ano pa lang, nando’n pa siya sa period within which [the] OVP can respond,” the defense spokesperson explained. (I think the 180 days will expire in October, if I’m not mistaken. So, it’s not that the OVP did not respond, but rather, we’re still within the period within which the OVP can respond.) – Rappler.com How does this make you feel? Loading