Confidential Funds Controversy: DepEd and OVP’s Maze of Disbursement Accountability

Confidential Funds in Philippines Education Department and Vice President’s Office

The Department of Education (DepEd) and the Office of the Vice President (OVP) in the Philippines face scrutiny over the handling of confidential funds. These funds were not directly paid to informants by special disbursing officers but were handed over to designated security officers.

After seven hearings by the House Committee on Good Government, the true usage of the funds remains unclear. Former special disbursing officers Edward Fajarda (DepEd) and Gina Acosta (OVP) claimed they were unaware of the fund allocations since they only provided the money to security officers.

Fajarda transferred funds to Colonel Dennis Nolasco, the DepEd security officer, while Acosta gave P125 million to Colonel Raymund Dante Lachica, head of the Vice Presidential Security and Protection Group. They indicated that their role was limited to disbursing the funds to the security officers, who then executed the actual distribution for various operations, including rewards and safe house rentals.

Withdrawal Process

Fajarda shared details on how he withdrew funds. He confirmed he encashed checks and transported P37.5 million in cash using several bags. The disbursement vouchers required approval from the accounting division before he could access the funds. He claimed these withdrawals happened in three separate transactions, each for P37.5 million, and the cash was stored in a vault at the DepEd office.

Acosta recounted a similar experience, stating she used four traveling bags to carry P125 million over multiple trips from late 2022 to 2023. After transporting the money, she stored it in a secure office accessible only to her.

Confusion Over Fund Distribution

Fajarda emphasized that delivering funds to the security officers constituted a disbursement. However, the House committee disagreed, asserting he did not directly hand the payments to the intended recipients. When asked if he had contact with fund recipients, he confirmed he did not.

Fajarda also mentioned he requested “quarterly activity plans” from Nolasco before releasing funds, which typically ranged between P4 million to P6 million weekly. He admitted that he relied solely on acknowledgment receipts provided by Nolasco, but previous statements indicated the Philippine Army received no funds for the leadership summits tied to the use of these confidential funds.

Acosta echoed this inability to verify the funds’ end-use, stating she relied on documents provided by Lachica, who managed field operations. Like Fajarda, she did not personally know the recipients of the confidential funds.

Accountability of Disbursing Officers

Both Fajarda and Acosta acknowledged that discussions on confidential funds occurred with Vice President Sara Duterte. However, lawmakers reminded them that their certifications to the Commission on Audit (COA) imply personal accountability for the funds. The state auditor clarified that the special disbursing officers, not the security officers, would be held responsible for any misuse or loss of these funds.

The ongoing hearings illustrate the challenges in tracking the use of confidential government funds, raising questions about transparency and accountability within these agencies.