EXPLAINER: What is 'evidence of success' in the use of confidential funds?

The impeachment trial of Vice President Sara Duterte has entered its second month, with the Senate impeachment court now delving into the technical details surrounding the alleged misuse of confidential funds under Article I.

One of the key terms that surfaced during the proceedings is "evidence of success."

What does "evidence of success" mean?

The term came up during the prosecution's questioning of state auditor Roderick Wamil, formerly of the Commission on Audit Intelligence and Confidential Funds Audit Office (COA-ICFAO), the office that audited confidential and intelligence funds lodged with various government offices, including the Office of the Vice President (OVP) and the Department of Education (DepEd) under Duterte.

During direct examination, Wamil testified that the OVP reported spending P42 million in confidential funds for the provision of medical and food aid from February 6 to March 29, 2023, and another P40 million for the same purpose from April 25 to June 30, 2023, for a total of P82 million.

"Our findings, or observations, were that the OVP did not submit documentary evidence of payments for the first and second quarters of 2023," Wamil said in response to questions from House prosecution counsel Lorna Kapunan.

"Second, based on its accomplishment report, it indicated that rewards had been paid, but the OVP did not submit any document evidencing the success of the information-gathering or surveillance activities resulting from the information provided by the informant, in violation of the joint circular," he added.

Under COA Joint Circular No. 2015-01, which sets the guidelines on the use of confidential and intelligence funds, CF is allocated to agencies for Confidential Expenses, or expenses for “surveillance activities in civilian government agencies that are intended to support the mandate or operations of the agency.”

While spending from these funds is exempt from certain budgeting and auditing rules because of their sensitive nature, agencies are still required to comply with specific Commission on Audit (COA) guidelines to ensure the funds are properly used.

READ: EXPLAINER: Understanding confidential funds and intelligence funds

Wamil testified that the OVP failed to comply with all documentary requirements for the first and second quarters of 2023. As a result, COA issued the office an Audit Observation Memorandum (AOM).

According to the AOM, the OVP paid P15 million in rewards to informants from February 6 to March 29, 2023, and another P12 million from April 25 to June 30, 2023.

What does the COA require?

Under COA Joint Circular No. 2015-01, which sets the guidelines on the use of confidential and intelligence funds, payments of rewards to informants must be:

"supported with documents evidencing the success of the information gathering and/or surveillance activities on account of the information given by the informer."

In other words, an agency that uses confidential funds to pay rewards to informants must be able to demonstrate that the information provided led to a successful surveillance or information-gathering activity.

However, the joint circular does not prescribe a specific document that qualifies as evidence of success, according to Wamil.

"No specific document is mentioned. What we look for is a causal link between the successful surveillance or information-gathering activity and the information provided by the informer," he said.

Wamil explained that COA requires such evidence to verify that the rewards paid to informants are justified and that public funds were used for their intended purpose. — MCG, GMA News