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Ortonio Testifies: VP Sara Duterte Knew and Approved Handling of PHP612.5 Million Funds

Manila: Vice President Sara Z. Duterte was aware of, authorized, and supervised the management of confidential funds from their request to liquidation, according to her longtime aide's testimony on Tuesday. This statement strengthens the House prosecution's impeachment charge, which alleges the misuse of PHP612.5 million in public funds.

According to Philippines News Agency, Office of the Vice President (OVP) Assistant Secretary and Assistant Chief of Staff Lemuel Ortonio specifically addressed the PHP500-million confidential fund allocated to the OVP. He appeared as the prosecution's second hostile witness following former special disbursing officer Gina Acosta.

During the proceedings, Presiding Officer Senator Francis 'Chiz' Escudero questioned Ortonio on whether the request, release, encashment, spending, and liquidation of the OVP funds were known to and authorized by Duterte and under her supervision. Ortonio testified affirmatively, stating Duterte was fully informed about the confidential activities and how they were implemented.

Ortonio further confirmed that he had not engaged in any actions involving the funds without Duterte's knowledge or authorization. The testimony was part of House prosecution private counsel Mae Divinagracia's direct examination, which traced Duterte's involvement with the OVP funds.

Ortonio revealed that the OVP had no confidential fund allocation when Duterte took office in July 2022, a situation that changed when Duterte signed a letter on August 22, 2022, seeking PHP250 million in confidential funds from the Department of Budget and Management (DBM). Ortonio confirmed that the determination of the fund amount was at the discretion of the Vice President.

Unlike other funding requests, the confidential fund request lacked computation, projection, Physical and Financial Plan (PFP), or supporting attachments. The PFP was subsequently prepared and approved by Duterte on September 16, 2022, and submitted three days later. The OVP ultimately received PHP125 million in December 2022, followed by three additional PHP125 million tranches in 2023.

Ortonio, as Duterte's authorized representative, signed disbursement vouchers and confirmed that no funds could have been released without her approval. Duterte herself signed vouchers certifying expenses or cash advances as necessary, lawful, and incurred under her direct supervision.

The testimony also highlighted discrepancies in accomplishment reports, notably PHP16 million reported for safe house rental and maintenance over varying days in 2022 and 2023. Additionally, PHP40 million, PHP42 million, and PHP40 million were listed for medical and food aid, though this category vanished from the third-quarter report after the OVP received an audit observation memorandum.

Ortonio stated that he prepared responses to these audit observations under Duterte's instruction, coordinating with Acosta and a security officer for necessary information. While Divinagracia attempted to label Duterte as the 'architect' of the fund operations, Escudero sustained the defense's objection, instead focusing on Duterte's knowledge, authorization, and supervision of the funds.

The prosecution is using Ortonio's testimony as evidence in the ongoing investigation into the alleged misuse of PHP612.5 million in confidential funds, comprising PHP500 million released to the OVP and PHP112.5 million to the Department of Education.