There is a presumption that Vice President Sara Duterte used the confidential and intelligence funds of the Office of the Vice President (OVP) and the Department of Education (DepEd) for her personal benefit because she failed to comply with state auditing rules, a Commission on Audit (COA) auditor said on Wednesday, August 5.

Roderick Wamil, who was part of COA's Intelligence and Confidential Funds Audit Office (ICFAO), pointed this out when senator-judges grilled him over COA’s actions when it audited the confidential and intelligence funds (CIFs) of the OVP and the DepEd—the two agencies’ that Duterte handled, on Day 13 of the impeachment trial. 

According to Wamil, receiving a Notice of Suspension for failure to comply with auditing rules creates a presumption that the funds may have been used for a personal benefit under the existing guidelines on the use of confidential funds.

Wamil explained this when Senator-judge Imee Marcos asked him if the COA had a finding that the confidential funds were used by the OVP for her own benefit, thus the Notice of Suspension.

“That is a presumption under the Joint Circular. It can’t be directly raised because there is already a presumption,” Wamil said, referring to Joint Circular 2015-01 which is the guidelines set for the use and auditing of confidential and intelligence funds (CIFs).

“Because there is a presumption, there’s no need to state (it),” he pointed out, referring to Paragraph 8.3 of the joint circular.

Under Paragraph 8.3 of the joint circular, it is stated that the failure of an accountable officer to liquidate public or confidential funds constitutes “prime facie evidence that he has put such missing funds or property to personal use and benefit.”

Based on the Joint Circular, Notices of Suspension are given to agencies to inform agency heads and their accountants of the “temporary disallowance in audit” of funds which appear “illegal, improper, or irregular” unless they are adequately explained or justified.

On the other hand, an Audit Observation Memorandum (AOM) are written notices issued by the COA informing government agencies of deficiencies in the liquidation of CIFs and requires them to submit comments or additional supporting documents.

According to Wamil, the COA also issued an AOM to the camp of the vice president after noticing that they would merely submit acknowledgement receipts (ARs) but no proof of payments being received by intended beneficiaries.

Wamil also informed senator-judges that an agency has 15 days to respond after receiving an AOM, and if state auditors determine that an agency remains non-compliant, they issue a Notice of Suspension. The agency is then given 90 days to comply before the COA issues a Notice of Disallowance.

Once a Notice of Disallowance is issued, the agency is required to restitute or return the amount disallowed in the audit.

When Senate Impeachment Court presiding officer and senator-judge Francis “Chiz” Escudero asked if there is “failure to liquidate” once an agency is issued a Notice of Suspension, Wamil answered in the affirmative.

“Based on the definition on notice of suspension, it is stated that it appears that the disbursement is illegal, irregular or improper,” Wamil said in response to Escudero’s question.