Secret fund use hits P10B; OVP outspends 4 security agencies
MANILA, Philippines — Confidential and intelligence fund expenditures ballooned to more than P10 billion in 2023—a historic high for secret fund spending, with the share of the Office of the Vice President (OVP) notably exceeding those of the government’s security agencies.
The Office of the President (OP) recorded the biggest expenditure of both confidential and intelligence funds, spending P2.25 billion and P2.31 billion, respectively, according to the Commission on Audit’s (COA) annual financial report on national government agencies for 2023.
A breakdown by the COA showed that P4.4 billion in confidential funds and another P6.02 billion in intelligence funds were spent by the entire national government last year, or a total of P10.4 billion.
Of the total, P375 million in confidential funds was spent by the OVP in 2023.
READ: VP Duterte, OVP execs may face plunder raps for secret fund ‘misuse’
Article continues after this advertisementThis exceeded that of security and law enforcement agencies such as the National Intelligence Coordinating Agency (Nica) with P127.4 million; the National Security Council (NSC), P90 million; the National Bureau of Investigation, P146.1 million; the Department of National Defense (DND), P78.9 million; and the Department of the Interior and Local Government (DILG), P75 million.
Article continues after this advertisementVice President Sara Duterte’s confidential fund spending is the subject of an investigation by the House committee on good government and public accountability, which is digging into the alleged misuse of the funds.
Her expenses are also being used as grounds for impeachment moves by opposition groups.
Confidential funds
State auditors explained that confidential fund expenses pertain to surveillance and confidential activities in civilian government agencies “that are intended to support the mandate or operations of the agency.”
The OP and its attached agencies spent P2.25 billion or 50.96 percent of the funding, followed by other executive offices with secret funds amounting to P783.8 million.
These include Nica; NSC; Philippine Drug Enforcement Agency with P500 million in secret funds; Office of the Presidential Adviser on Peace, Reconciliation and Unity, P49.5 million; Anti-Money Laundering Council, P9.3 million; Games and Amusements Board, P5 million; Philippine Competition Commission, P2.3 million; and Philippine Racing Commission, P221,000.
This was followed by the Department of Justice (DOJ) with P683.8 million in secret funding or 15.49 percent of the total.
Intelligence funds
In the DOJ, the breakdown included the confidential funds for the NBI; the Office of the Secretary with P522.68 million; and the Bureau of Immigration, P15 million.
The DOJ was followed by the OVP with its P375 million spending, or 8.49 percent of the total. Next to the OVP were the DND and the DILG, accounting for 1.79 percent and 1.7 percent of the confidential funds, respectively.
The COA defines intelligence expenses as those related to intelligence information-gathering activities of uniformed and military personnel as well as intelligence practitioners that have a “direct impact to national security.”
The OP again maintained the highest share with P2.3 billion, or 38.32 percent, of the overall funding for the national government.
This was followed by the DND with P2.2 billion, or 37.3 percent. Of this amount, P1.7 billion went to the Armed Forces of the Philippines’ general headquarters; P444 million to the Philippine Army; P40.4 million to the Philippine Navy; P17 million to the Philippine Air Force, and P11.9 million to the Office of the Secretary.
The DILG had P936.5 million, or 15.54 percent, of the total intelligence funds, all of which were given to and spent by the Philippine National Police.
It was followed by Nica with P522.7 million; the Philippine Coast Guard with P10 million; and the DOJ with only P100,000.
