The House Committee on Good Government and Public Accountability has identified significant flaws in current laws governing the use of confidential funds, prompting calls for stricter regulations.
Committee Chairman Joel Chua, in his opening statement, cited the lack of a robust auditing system by the Commission on Audit (COA) to monitor the proper use of confidential funds. He stressed the need for COA to enhance budgetary oversight and technical resources while creating clearer guidelines for evaluating physical and financial plans by government agencies.
Chua also proposed requiring detailed accomplishment and liquidation reports “under oath” supported by evidence. Furthermore, he noted that the fidelity bond required of special disbursing officers is disproportionately low compared to the funds they handle, as seen in the cases of Gina Acosta and Edward Fajarda.
The committee plans to file two bills: the “Act Regulating the Allocation and Utilization of Confidential and Intelligence Funds, Imposing Penalties for Misuse and Misappropriation,” and the “Act Regulating Special Disbursing Officers and Imposing Penalties for Misappropriation.”
These measures aim to close loopholes in the existing Joint Circular governing confidential funds, which critics argue are too lenient and enable misuse.
