Palace defends P4.5-B confidential and intelligence funds

MALACAÑANG on Thursday defended the Office of the President’s proposed P4.5 billion in confidential and intelligence funds (CIF), saying there is nothing wrong with secret funds as long as they are not tainted with corruption.

“Let’s remember that if the reporting is correct and the funds were used correctly, it will not be questionable,” Palace Press Officer Clarissa A. Castro told reporters in Filipino.

She also reminded that President Ferdinand R. Marcos, Jr. also stands as the Commander-in-Chief of the Armed Forces of the Philippines and chief architect of national and foreign policies.

The Chief Executive is seeking almost half of the total P10.77-billion CIF under the proposed 2026 budget, according to the Department of Budget and Management (DBM).

Vice-President Sara Duterte-Carpio, whose impeachment trial is in limbo, was accused of misusing her confidential funds as the Education secretary from 2022 to 2023 and as Vice-President, totaling over P612 million.

Her alleged misuse of CIF funds was one of the bases for her impeachment complaint, deemed unconstitutional by the Supreme Court (SC). The impeachment case against her has been archived by the Senate ahead of the SC’s action on motions to reconsider its ruling to junk the case.

Former Finance Undersecretary Cielo D. Magno earlier flagged Mr. Marcos’ confidential funds, saying the President has no moral ascendancy over Ms. Duterte if he continues to seek such funds despite corruption.

“Let us remember that this also came from the DBM — that the President is the Commander-in-Chief and the chief architect of national policy, national security, and foreign policy, and that the President needs funds,” Ms. Castro added in Filipino.

“Confidential funds or money are not bad if used correctly. Confidential funds or resources only become bad if used by someone corrupt.”

The DBM on Wednesday transmitted to the House of Representatives the proposed spending plan for 2026, totaling a record P6.793 trillion. This is 7.4% higher than this year’s national budget and is equivalent to 22% of the country’s gross domestic product.

Also during the same briefing, Ms. Castro said there may have been irregularities in the use of P15 million in confidential funds by the Department of Education (DepEd) under Ms. Duterte, contradicting her camp’s assertion that state auditors had found no corruption.

She said a Commission on Audit (CoA) notice of disallowance is not merely about missing documentation as it could indicate irregular, excessive, or questionable spending, creating a presumption of misuse of funds.

Ms. Castro pointed to Ms. Duterte’s Spokesperson Michael T. Poa’s earlier admission before the House that the confidential funds were spent without receipts, with only certificates from the Armed Forces of the Philippines submitted to CoA to support a youth leadership summit.

She noted Mr. Poa himself admitted that the summit had not been financed by DepEd’s confidential funds.

“That makes it appear the certificates were used to cover up or plug a gap to show that the P15 million was spent,” Ms. Castro said, adding it would be best for Mr. Poa to explain directly what happened to the funds.

Ms. Duterte’s camp earlier said CoA notices showed only deficiencies in documentation, not evidence of corruption.

Once a formidable tandem that resulted in a landslide win during the 2022 presidential race, Mr. Marcos and Mr. Duterte last year broke up after the revelations of Ms. Duterte’s alleged fund misuse and her threats against the First Family.

The Philippines’ surrender of Ms. Duterte’s father, former President Rodrigo R. Duterte, to the International Criminal Court for alleged crimes against humanity for his deadly war on drugs, further soured the two top government officials’ relationship. — Chloe Mari A. Hufana