SAINT LOUIS COLLEGE-CEBU

134 M. D. Echavez, St. Sudlon, Maguikay, Mandaue City

“Unseen Mismanagement: Government Malpractice and the Dark Side of

Confidential Expenditures"

A Position Paper

by

FRANCISCO, KISHA FAITH S.

S.Y. 2023-2024

A Project Submitted to

MS. LOVE JOY L. COLINA, LPT, MEd, ESL

In fulfillment of the Requirements for

ENGLISH FOR ACADEMIC AND PROFESSIONAL PURPOSES: APP (1)

1 Semester Finals
st

November 2023
 "Unseen Mismanagement: Government Malpractice and the Dark Side of Confidential
Expenditures"
A Position Paper by Kisha Faith Soco Francisco

For a government official of 15 years, Madam Vice President Sara Duterte

seems to not have embodied the character and full accountability that an executive to
the law should possess. According to Gregorio (2022) that during the presidency of
Gloria Macapagal-Arroyo and Benigno Aquino III, P600 million pesos and P500 million
pesos were asked for confidential funds respectively (para. 5-6). With such comparison,
why does the Office of the Vice President and Dep-Ed need such an amount of money,
even as confidential funds? Can we even see the allocations of these budgeted funds
effective in our community? Releasing such statements about contradicting the peace
and order of the country, if the community questions the funds. Should not it be that the
obscurity in financial allocations of the confidential funds is what challenges the peace
and order of the country? As a part of the community, I do think that this would not be
controversial in two ways, if their intentions are clear as servants of the law and if there
is no secrecy of the allocations of all the funds.

To contradict, I believe her statement “Tandaan ninyo—kung sino man ang

kumokontra sa confidential funds ay kumokontra sa kapayapaan. Kung sino ang
kumokontra sa kapayapaan ay kalaban ng bayan,” is null, impractical and emotional.
Us, as the community that should benefit in those funds, can question if that is effective
as we don’t witness such assistance that could help our country as a whole. But as per
statement of Madam Duterte, encoded by Lopez (2023) in her speech at the 122nd
Police Service Anniversary celebration on Wednesday at the Police Regional Office in
the Caraga Region (PRO-13) that, “In the pursuit of progress, it is imperative that we
prioritize the well-being of our citizens and safeguard the peace and order that
underpins our society," (para. 2), maybe her term as the new Department Secretary of
Dep-ed is in need of such amount because the educational sector of our country is too
underdeveloped. As stated by herself, "Ang atong mga anak dapat maka eskwela nga
dili ta mahadlok nga dunay magpahimulos nila. Dapat makapanigurado ta nga dunay ta
mahatag nga pagkaon nga baon sa ilaha. Dapat makauli sila sa atong mga paninalay
nga luwas ug malipayon. This is a picture of national security. This is confidential
funds," (para. 13). This also applies to her being the Vice President, as she stated as
well that, “Whether it is combating terrorism or safeguarding the integrity of our nation,
these funds enable our law enforcement agencies and intelligence bodies, as well as
other national government agencies, and the equally important local government units,
to protect our citizens” (para. 8). Giving the benefit of the doubt, and hearing from her
the plans, I do think it is reasonable to ask for funds. The allocations needed are also
aligned with what is needed in her sector as what is said by Madam herself, and this
may help the community as well.

But why should it be confidential? To clarify, we must know what confidential

funds are and its purpose. Based on the press release of the 19th Congress of the
Senate of the Philippines (2023) that, “Per JMC, confidential fund refers to the lump-
sum amount provided as such in the General Appropriations Act for National
Government Agencies, in appropriation ordinances for local government units, and in
the corporate operating budgets or COBs for government owned and controlled
corporations, for their confidential expenses” (para. 6). As defined, confidential funds
are for confidential expenses, so why should Madam Vice President ask for such if the
funds are for the people? This is where the obscurity of the financial allocation of funds
goes in. Making it a confidential fund will not subject it to being checked in auditing. To
support, based on the news article published by Generalao (2023) that, “As the term
suggests, secrecy is involved in the use of confidential funds. They appear in the
General Appropriations Act (GAA) as lump sums, and they are not subject to the COA’s
regular auditing requirements. But an accountable officer and a special designated
officer (SDO) are to be named in agencies with CF” (para. 2). Opacity of such financial
transactions will hinder the questions of the public as to where are the funds allocated,
and even question the sufficiency of the funds as it does not serve the needs of the
people enough. This itself grows suspicion as the purpose of claiming the funds and
how it is labeled do not coincide.
 If the funds are to be spent for emergencies in both offices of Madam Vice
President, how is P125 million pesos spent in 11 days? To investigate based on the
Senate Hearing responses between Rep. Stella Quimbo and Rep. Arlene Brosas, a
representative of the Gabriela Women’s Party, the initial report of 19 days of
expenditures, confirmed by Madam President, was replaced based on the report of the
ongoing investigation of 11 days. Stating the dates of utilizing P125 million pesos. To
quote the statement based on an article written by Chi (2023) that, “Makabayan
lawmakers also previously said that the OVP spent the P125 million fund in just 19 days
based on OVP documents uploaded online. Specifically, Castro said that the documents
show the funds obtained were obtained on December 13 and reported fully disbursed
on Dec. 31, 2022.” (para. 15). Recalling the events of those dates, the educational
sector reported a Partnership Appreciation Program, which involves different partners,
at the estimate of 200, attended the event. In my perspective as per reading the
website, it generates one question in mind. The venue of the said program is in Wack-
wack Golf and Country Club. Why should it be held in such an establishment? And the
timeframe as well coincides, in which this program is held on December 13, the start of
the expenditure of the P125 million pesos. As speculated by Rep. Arlene Brosas, a
representative of the Gabriela Women’s Party, in the Senate Hearing with Rep. Stella
Quimbo that the estimated amount spent per day from December 13 to December 31 is
P11 million pesos, could it be that one part of the money is spent on the program? That
much needed allocation can be used in other events, calamities and projects during that
time, specifically the flooding in Visayas and major parts of Mindanao. Not to mention
the dates are in the holiday season as well. Such small details of these events just
leads to one conclusion, the funds are truly spent irresponsibly.

It all leads back to the law, is it truly constitutional? If so, why is opacity present in
the confidential funds? Though, it is understandable how it is labeled as confidential, but
with such instances of this situation, how P125 million pesos is spent on a small amount
of time, we need a transparency of all the expenses, a clarification as to why and how it
is spent. Based on the report of Carpio (2023) that, “There is no law providing for
limitations on the exercise of the people’s right to information on disbursements and
liquidation of confidential funds. Thus, at present, the people have a right to full access,
without any limitation whatsoever, to official records, documents and papers relating to
the disbursements and liquidation of confidential funds” (para. 1). Thus, repeating the
statements above, the community has a right to question such allocation, voiding the
statement of Madam President. It truly shows her unprofessionalism as an executive to
the law.

To conclude all my claim, with the support of factual evidence and witness
statements, confidential funds is not something to justify, rather it is undergoing an
incorrect process, starting from the label of the funds itself. The allocations are
righteous and appropriate for the needs of the country. But the expenditures do not
coexist with the purpose of having the confidential funds. The funds are not to blame but
the handler of the finances itself. The responsibility and accountability of the persons
involved, especially as they are the executives, are the ones that must be questioned.
Are they really committing to the values and mission of their position?
References:

Carpio, A. (2023, October). Fundamental constitutional requirements for confidential

funds. Rappler. Retrieved from
https://www.rappler.com/voices/thought-leaders/analysis-fundamental-
constitutional-requirements-for-confidential-funds/

Chi, C. (2023, September). Stella quimbo bares OVP's P125M confidential funds spent
in just 11 days. Philstar Global. Retrieved from
https://www.philstar.com/headlines/2023/09/25/2298927/stella-quimbo-bares-ovp
s-p125m-confidential-funds-spent-just-11-days.

Generalao, M. (2023, September). What to know: are confidential funds secret fundsnot
subject to audit?. Cover Story. Retrieved from https://coverstory.ph/what-to-know
are-confidential-funds-secret-funds-not-subject-to audit/.

Gregorio, X. (2022, October). Confidential, intel funds in the national budget: what you
need to know. Philstar Global. Retrieved from
https://www.philstar.com/headlines/2022/10/05/2214494/confidential-intel-funds-
national-budget-what-you-need-know.

Lopez, A. (2023, October). Confidential funds needed for peace, order: VP Sara.
Philippine News Agency. Retrieved from
https://www.pna.gov.ph/articles/1211164.

Press Release. (2023, September). Chiz tells public officials: submit utilization plan of
confidential funds. Senate of the Philippines 19th Congress. Retrieved from
https://legacy.senate.gov.ph/press_release/
2023/0906_escudero1.asp#:~:text=Per%20JMC%2C%20confidential%20fund
%20refers,controlled%20corporations%2C%20for%20their%20confidential.