Legality of confidential funds does not justify its huge allocation — lawmaker

MANILA, Philippines (Updated 3:08 p.m.; Aug. 7, 2023) — The public should not be kept in the dark about how government agencies plan to spend their huge allocation of confidential and intelligence funds despite government rules allowing its use for classified purposes, an opposition lawmaker said Friday.

Rep. Edcel Lagman (Albay) argued against the “secret” nature of the CIF and criticized its huge allocations in the proposed budget for 2024.

“The existence of “rules” in the availment and utilization of intelligence and confidential funds does not justify the enormity and widespread allocations of these secret funds,,” Lagman said.

Around P10.14 billion in confidential and intelligence funds (CIFs) are in the proposed P5.768-trillion budget for 2024, according to a copy of the 2024 NEP and the Department of Budget and Management.

Broken down, P4.5 billion will go to the Office of the President — the largest chunk — while around P1.7 billion will be allocated to the Department of National Defense. 

Vice President Sara Duterte also stands to get P650 million through both the Office of the Vice President (P500 million) and the Department of Education (P150 million). DepEd's confidential funds in 2023 was P150 million, the same amount in the proposed budget for 2024.

Budget Secretary Amenah Pangandaman said in a briefing Thursday that the proposed amount of CIFs for 2024 is "almost the same" as the allocation for 2023. 

Lagman called for a mechanism to audit the way agencies will spend the controversial fund.

“The bulk of the intelligence and confidential funds must be included, if ever, in the agencies' Maintenance and Other Operating Expenses (MOOE) to assure the regular and transparent auditing process, rather than the present furtive auditing procedures behind closed doors between the audited and the auditor,” Lagman said.

Meanwhile, Rep. France Castro (ACT Teachers) also criticized the CIFs allocated in the proposed 2024 budget and called it "presidential pork in the form of CIF."  

Castro questioned why agencies with “no business” in conducting intelligence operations stand to get huge sums of CIFs, while Rep. Arlene Brosas (Gabriela Women’s Party) criticized the hefty allocations of confidential funds “vulnerable to corruption” despite an economic downturn for the country. 

"Is this intentional in order to conceal the continuation of programs targeting progressive groups and individuals? The CIF allocation for the Office of the President, supposedly a civilian office, is even higher than the combined CIF of the entire Department of National Defense and the Philippine National Police," Brosas said.

Confidential and intelligence funds are budget allocations reserved for costs associated with an agency’s surveillance and intelligence-gathering activities. 

Confidential funds, as the name implies, cover expenses linked to confidential surveillance tasks within government agencies. Similarly, intelligence funds are for intelligence expenses related to information-gathering activities of uniformed and military personnel and intelligence practitioners.

RELATED: Confidential and intelligence funds explained 

Auditing CIFs is largely dependent on the transparent and accurate submissions of government agencies with these funds. However, a 2015 joint circular requires these entities to present a detailed physical and financial plan when requesting such funds. This plan should include estimated amounts for each project, activity, and program.  

Opposition lawmakers have also likened CIFs to pork barrel in the past, which the Supreme Court considered unconstitutional in 2013. — with reports by Xave Gregorio

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Editor's Note: This article has been updated to indicate that the confidential and intelligence funds of the DepEd in 2023 was P150 million, the same amount in the proposed budget for 2024. An earlier version of the report indicated that there has been a 500% increase in CIFs allocated to the DepEd in 2023. This has been removed.