Managing Confidential Funds 101

The problem with our public officials is that they spend public funds as if there are no tomorrows, as if they own this money, and as if these funds are not borrowed from domestic and foreign loans. What is worse, these officials go into an outburst once the people start asking questions on how these were spent. We need to change our paradigm.

The UP School of Public Administration or the Ateneo and LaSalle College of Governance should run a course on managing Confidential and Intelligence Funds to teach public officials including presidents and vice presidents on the basics of financial management with the end in view of making sure that public funds are used with utmost integrity, prudence, and a sense of right purpose. All those who aspire for public office, whether in the executive, legislative, and the judiciary, and even those in Government Owned and Controlled Corporations and Government Financial Institutions and in the local government units should learn by heart the fundamental principles of accountability in handling public funds.

When I took up my Masters in Public Administration in the 1970s in UP Cebu, my professor, Dr. Demetria Ylaya, hammered into my mind and psyche that public funds are owned by the people, and we are only stewards of such funds. We must always be prudent in the handling of money belonging to the taxpayers. We should be careful with every centavo because the people have the right to hold us to account anytime and every time. Until now, I remember those fundamental principles. I worked for the government for no less than 27 years and I have never been involved in any problem on malversation and defalcation.

I was a Labor attaché for nine years deployed to OFW-heavy countries including Taiwan, Kuwait, and Malaysia and I handled big sums in foreign currencies. I had to pay hospitals where sick and injured OFWs were confined and operated on. I had to pay. I also spent public funds to feed between 200 to 700 runaway household helpers, who escaped from the cruelty, harassment and maltreatment by cruel, oppressive, and exploitative employers in difficult, dangerous, dirty, deceptive, and degrading jobs. I always followed all the protocols and regulations on handling and liquidating cash advances.

In the case of Tito Sarion versus People (GR No 243039-40, March 21, 2021), the Supreme Court held that the elements of the crime of malversation of public funds, under Section 3(e) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act, are: (a) The accused must be a public officer performing administrative, judicial and other official functions, (b) He must have acted with manifest partiality, evident bad faith or inexcusable negligence, (c) That his action caused undue injury to any party, including the government, and (d) The act provided undue advantage or unwarranted benefits or preference to any favored party.

The Quadcomm investigation showed Batangas Rep. Luistro interrogating one of the special disbursing officers reporting to the vice president. It was revealed that the disbursing officer withdrew ?120 million and turned it over to the security officer who supposedly did the disbursement. The committee reminded her that it might have been a violation of law. Because of the barrage of questions, the officer felt so much stress that she had to be rushed to the hospital.

All these should have been avoided if the accountable officer had exercised prudence, and a sense of accountability and utmost integrity. At the end of the day, the vice president should accept all the backlashes, under the principle of command responsibility.