OVP, DepEd confidential funds stashed in duffel bags, says bank officials
MANILA, Philippines — Millions of confidential funds were merely stored in duffel bags when they were withdrawn by special disbursing officers of the Office of the Vice President and Department of Education, state-owned bank authorities said.
During the House Committee on Good Government and Public Accountability’s sixth hearing on Wednesday, November 20, Landbank representatives were questioned by lawmakers about how the OVP and DepEd received their confidential funds.
Lawmakers were surprised when Landbank Shaw Boulevard Branch Head Jean Abaya revealed that OVP special disbursing officer Gina Acosta withdrew the P500 million in confidential funds from their branch and placed it into duffel bags.
It was as if there was no concern for ensuring the funds were stored and transported safely, lawmakers thought.
The OVP’s confidential funds were withdrawn four times, with P125 million taken each time, from December 2022 to the first three quarters of 2023.
Abaya also noted that Acosta was accompanied by four individuals, not affiliated with Landbank, who helped carry the bags and transport them to the OVP office.
“Sila po kasi ‘yung nag-insert doon sa bag, naglagay sa bag from the teller. Nung nirelease po ng teller, sila na po ang nagdivide po doon sa bags,” she said.
(They were the ones who inserted the items into the bags and placed them in the bags after the teller released them. They also divided the contents among the bags.)
How was the fund delivered? Rep. Janette Garin (Iloilo, 1st District) questioned whether there was any request to have the funds delivered directly to the OVP office, given the large amount. She found it “unusual” that such a large sum was picked up directly from the bank.
OVP Administrative and Financial Services Director Rosalynne Sanchez confirmed that the confidential funds were transferred from the bank directly to the office.
Abaya clarified that no memorandum of agreement was in place for delivering the funds. She added that the funds were delivered in a box bearing the seal of the Banko Sentral ng Pilipinas (BSP).
How was the fund stored? The committee also learned from Sanchez that Acosta’s office is small and shared with other staff, with cubicles side by side. Sanchez said she is “not aware of any vault” and did not check the cabinets if the funds were stored there.
“You are in charge of the coffers of the OVP. You will release a check of P125 million, not once, not twice, not thrice, but four times, and cash it totally and then pinapabayaan niyo na lang (You abandon it)? Eh kung inuwi 'yan at tinakbo ng tao (What if it was taken home and they ran away with it)?” Garin asked.
Sanchez explained that it is the special disbursing officer’s responsibility to “safe keep the fund,” in accordance with Joint Circular No. 2015-01, which outlines the proper use and accounting of confidential funds.
DepEd confidential funds. Meanwhile, Nenita Camposano, Landbank assistant vice president for the Department of Transportation and Communications (DOTC) branch, revealed that DepEd special disbursing officer Edward Fajarda followed a similar process to withdraw the P112.5 million in confidential funds.
However, she explained that Fajarda had one additional person to assist him, and they left the bank through its fire exit to transport the duffel bags to the DepEd compound.
Fajarda withdrew P37.5 million three times from Landbank, each time with a duffel bag and the assistance of another person.
Chief of staff also says she has no idea
Lawmakers then questioned OVP Chief of Staff Zuleika Lopez, and still to no avail. Lopez maintained that she is unaware of the utilization and disbursement of confidential funds.
Lopez offered a similar explanation to that of former OVP spokesperson Michael Poa, saying that Vice President Sara Duterte’s office is “compartmentalized” or “clustered.”
She explained that this means certain information is known only to specific officials, and not one person is aware of all activities except for Duterte.
At the fifth hearing on November 11, Sanchez said that Acosta likely reports to Lopez. However, Lopez denied this, saying she only handles daily operations and external communications and is “not privy” to confidential matters.
Even when Rep. Gerville “Jinky Bitrics” Luistro (Batangas, 2nd District) pressed Lopez about her role as Davao City's city administrator during Duterte's tenure as mayor from 2016 to 2022, Lopez maintained that she did not sign disbursement vouchers or checks for confidential funds.
According to the Commission on Audit reports, Davao City spent over P400 million confidential funds for four years under Duterte’s term.
RELATED: VP Sara Duterte’s long-time staff oversee OVP confidential funds
Where is Acosta?
Like other OVP officials who had previously pointed to her, Lopez deflected responsibility and claimed no knowledge of Acosta’s whereabouts, stating she was on official travel to “various areas” for the OVP’s “thanksgiving anniversary” celebrations.
Lopez pointed to Lemuel Ortonio, her assistant chief of staff and OVP’s bids and awards committee chair, as the one who issued the travel authority to Acosta.
Acosta, Ortonio and Fajarda, along with his wife, DepEd Assistant Secretary Sunshine Fajarda, once again ignored the House probe. The committee warned them of potential criminal charges for repeatedly “defying” the subpoena.
OVP and DepEd officials under Duterte have been facing scrutiny for quickly spending confidential funds, P125 million in just 11 days. The COA also flagged portions of the fund as improperly spent or accounted for.
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