HOUSE Committee on Good Government and Public Accountability chairperson Rep. Joel Chua (3rd District, Manila) on Wednesday formally filed bills to address the gaps found in the use of confidential and intelligence funds (CIFs) in the wake of the panel’s investigation into the alleged misuse of P612.5 million in confidential funds received by the Office of Vice President Sara Duterte and the Department of Education when she was education secretary.
House Bill (HB) 11192 provides that CIFs shall be allocated to agencies as indicated in the General Appropriations Act and to all other agencies, departments, units with mandates related to national security, peace and order, and intelligence gathering.
“It was evident that confidential funds allotted to civilian agencies were used to augment its operations and not for national security — contrary to the intent of granting it,” Chua said. HB 11192 also limits the allocation of CIFs to not exceed 10% of the total annual budget of the agency unless otherwise explicitly authorized by law.
“The spirit of granting confidential funds for confidential expenses was for peace and order programs and public safety. This was not how the confidential funds were used by the civilian agencies as seen in the inquiries of the House Committee on Good Government and Public Accountability,” he added.
Chua also noted that Joint Circular (JC) No. 2015-01 which governs the use of CIFs, had loose requirements because it allowed acknowledgment receipts bearing only signatures and illegible handwriting belonging to individuals who identities have not been verified to serve as proof of liquidation.
The other bill he filed was HB 11193 which discusses the scope of duties, functions and accountabilities of special disbursing officers (SDOs).
Under the said bill, SDOs shall have an approved fidelity bond in an amount equivalent to their cash accountability. Their net worth should also be able to cover at least 50% to 100% of their cash accountability.
HB 11193 prohibits designated SDOs from further delegating their disbursement functions.
The proposed law likewise provides that the SDO and the head of agency shall be jointly and severally liable in case of failure to render accounts, misappropriation, or misuse of the funds, whether through negligence or intentionally.
The penalty of perpetual disqualification from public office, including loss of benefits, shall be imposed on any offender, without prejudice to the filing of criminal, civil and administrative cases.
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