By Scott

Thumbnail by James Benin and Mother

Just recently, a controversial matter involving Vice President Sara Duterte has surfaced in the country, gaining the attention of the public following the revelation by the Commission on Audit (COA) that the Office of the Vice President (OVP) expended Php 125 million in confidential funds in just 11 days in 2022. This was then affirmed by Duterte during the hearing of the Senate committee on finance on the OVP’s proposed 2024 budget of Php 2.3 billion, which included confidential and intelligence funds totaling Php 500 million. In a nation with a lengthy history of graft and corruption, this received backlash from the public, once again highlighting concerns about government transparency.

What are Confidential and Intelligence Funds?

Confidential and intelligence funds (CIF) are lump-sum allocations set aside in the national budget, primarily designated for activities associated with national security and the gathering of intelligence information. As the name implies, confidential funds are designated for confidential expenditures related to surveillance operations aimed at enhancing the functions of civilian government agencies. Likewise, intelligence funds are allocated for activities involving the collection of information that has direct implications for national security, with a primary focus on uniformed personnel, military operatives, and intelligence practitioners.

During the Senate’s budget deliberations for the OVP, Vice President Duterte mentioned that she wasn’t adamant about including CIF in her office’s budget, but having these funds would make their work easier at the OVP. She elaborated, saying, “We can only propose but we are not insisting. We can live without confidential funds but of course our work will be much easier if we have the flexibility of confidential funds in monitoring the safe, secure, and successful implementations of the programs and projects and activities of the OVP.” 

What can CIF be used for?

In 2015, the Commission on Audit (COA), in collaboration with the Department of Budget and Management (DBM), Department of the Interior and Local Government (DILG), Governance Commission for Government-Owned and Controlled Corporations (GCG), and the Department of National Defense (DND), issued a joint circular outlining guidelines for the disbursement and liquidation of confidential funds.

According to the joint resolution, confidential funds can only be used for the following purposes:

• Purchase of information necessary for the formulation and implementation of program, activities and projects relevant to national security and peace and order
• Rental of transport vehicle related to confidential activities
• Rentals and the incidental expenses related to the maintenance of safehouses
• Purchase or rental of supplies, materials and equipment for confidential operations that cannot be done through regular procedures without compromising the information gathering activity concerned
• Payment of rewards to informers
• Uncovering and preventing illegal activities that pose a clear and present danger to agency personnel or property, or other facilities and resources under the agency protection, done in coordination with appropriate law enforcement agencies

As for intelligence funds, their utilization is restricted to the following purposes: 

• Intelligence and counterintelligence activities that have direct impact on national security
• Special projects and case operation plans as approved by the head of agency involving covert or semi-covert psychological, internal security operation, and peace and order activities, as well as programs, projects and campaigns against lawlessness and lawless elements involving intelligence activities

While this circular outlines guidelines for the proper use of confidential and intelligence funds, there are no constitutional parameters established by Congress to grant these agencies the authority to issue such guidelines. Unbeknownst to many, this omission carries far-reaching implications that impact various facets of society. 

Age-Old Practices

For the Vice President, accessing confidential and intelligence funds has become a long-standing practice during her tenure in power. As the former Davao City mayor, the local government’s annual confidential expenses observed a significant increase, rising from Php 144 million in 2016 to Php 460 million in 2022. Data showed that in 2016, half of the Php 144 million allocation fell under the mayorship of former President Rodrigo Duterte. However, under Sara Duterte’s administration, this allocation surged to 103.5% in 2017, amounting to Php 293 million. Subsequently, in 2019, the allocation reached Php 460 million and remained fixed at the said amount from the said year to 2022. 
As the current Vice President of the country, her requests for 2024 CIF include Php 500 million for the OVP and Php 150 million for the Department of Education (DepEd), where she also serves as the department’s secretary. Significantly, it was revealed that Duterte had expended Php 125 million in 2022, with this information only becoming public knowledge after the publication of COA reports in July of this year.

The Cost of Misaligned Priorities

Sara Duterte’s allocation of CIF seems to have impacted the Philippine budget system, potentially depriving Filipinos of better living conditions. In hindsight, DepEd is primarily focused on education and not directly related to national security, making the allocation of Php 150 million for CIF seem particularly questionable. Alternatively, the funds could have been redirected to support other essential services that hold greater relevance within the purview of this agency. 

While Duterte seems confident about the CIF, the budget for certain special provisions under DepEd may face cuts in 2024. For one, the National Academy of Sports, a state-operated sports institution in the country, saw its budget decrease from Php 356.8 million in 2023 to just Php 195.2 million in 2024, representing a 45% budget cut. Furthermore, the Early Childhood Care and Development council, an attached agency of DepEd, is also set to face a 24% budget cut, from Php 291.8 million in 2023 to Php 221.2 million in 2024. Notably, the National Museum of the Philippines, serving as the primary custodian of Philippine cultural heritage, will encounter a Php 189 million budget reduction in 2024. Other institutions affected by budget cuts include the National Book Development Board, the Philippine High School for the Arts, and the National Council for Children’s Television. 

This speaks volumes to the ongoing challenge of budget allocation within the Philippine government. Such an evident misplacement of priorities raises questions as to why Php 150 million from the department’s budget is designated for something not directly aligned with the agency’s mission when it could be better utilized for more critical purposes that deserve greater attention.

Unnecessary Precautions 

Being the DepEd Secretary, it is Duterte’s responsibility to know, address, and help execute feasible solutions to the issues rising within the education system. With all the budget cuts and debt, it is key that the funds are invested into projects that are effective and efficient. 

The country can no longer afford to gamble and second-guess with scarce, valuable resources. 

Now, with CIF in the picture, one may wonder if these funds should’ve been utilized better—after all, national security is a necessity. However, given the timing, is it worth the urgency and resources when numerous sectors within the education system are suffering?

The extreme need for more classrooms, teachers, learning resources, facilities, and even tables and chairs has been haunting the nation for the longest time now. Before the start of the year, DepEd stated that the country was short of 159,000 classrooms. The building and fulfillment of these facilities cannot keep up with the rising number of students. Issues such as overcrowding and learning gaps emerge from this root. These problems persist and remain unsolved year after year despite utilized efforts and budget allocations that never seem to be sufficient.

Though it was always relevant, having a steady plan is crucial, now more than ever. After the pandemic, there is an evident learning gap. According to the World Bank, the Philippines’ learning poverty in 2022 was at 91%, which means that 9 out of 10 students aged 10 have a hard time reading simple texts. Additionally, in world rankings, the country is one of the lowest. 

However, not only are students suffering, but their teachers as well. With the increased workload and harsh working conditions, teachers are continuously struggling, barely earning enough to sustain the cost of their work. The Alliance of Concerned Teachers (ACT) has been bringing up how the salaries of teachers are unlivable, accompanied by minimal benefits. According to their report, public school teachers, who are Teacher I, receive roughly Php 27,000 monthly, while private school teachers receive only about Php 15,000 to Php 18,000. Currently, public school teachers are only given free annual medical examinations and injury compensations. 

Evidently, there are matters at hand that weigh so much more, perpetually crushing the Filipino people. Long has this been going on, primarily due to a lack of funding to fully support proposed plans. Instead of diverting the attention to other potential threats, we should address the actual threat of declining education quality, which is rapidly deteriorating. Allocating more funds to this issue, rather than the CIF, increases the power to finally put an end to the problem. 

When left untreated and uncared for, it may lead to the degradation of Philippine Education as a whole. Instead of ignoring intensifying issues, dedicating time and resources into fixing the ailments may actually serve the Filipinos better.

The Real Obstacle to Peace

Despite the countless questions and criticisms from the masses, the OVP blindly defends their use and request of these funds. Duterte, herself, goes so far as to say, “Kung sino man kumokontra sa confidential funds ay kumokontra sa kapayapaan.” However, does opposing these funds immediately imply that one is against peace, more so an enemy of the state? 

Looking at it, these funds are built upon unclear and shaky grounds. While investing in defense is a government responsibility, the lack of transparency and laws that ensure proper use of funds open up the doors for graft, lies, and corruption to plague. 

Asking these questions are critical for future reform. To sustain a democracy, transparency is extremely needed. The existence of confidential funds has been around for years, but there is no established legal framework or security for these funds. Allowing the continuous use of these funds without any precaution doesn’t necessarily mean that they can’t be used properly. However, it is still undeniable that they have the potential to be exploited under certain circumstances.

Even though the House of Representatives has recently retracted the CIF budgets for various agencies, including DepEd, it highlights the issue of budgeting and funding lacking reasonable justifications. There are lapses in allocation and an underestimation of the different needs of the country. Focusing on misplaced priorities only fuels the growth of our mounting debt and mistrust, especially since the money used to pay for these projects come from the pockets of every Filipino.

With this, the actual definition of “kalaban ng kapayapaan” should not be those who critique the questionable aspects of the CIF. Instead, those who are concerned with this issue and oppose to challenge injustice are the exact opposite: the real obstacle to peace are those who continue to steal, deceive, and hide the truth from the masses for their own benefit.

Right now, the government can reassess their priorities and fix the allocation of the nation’s budget. Identifying the issues and addressing them with appropriate solutions is what the country desperately needs. After all, the Philippines is a developing country. Investing back in the people first can finally kickstart the country’s recovery and progress.