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OVP’s PHP125 Million Fund Used for Pre-Incurred Obligations, Says Ortonio

Manila: Office of the Vice President (OVP) Assistant Secretary Lemuel Ortonio disclosed on Tuesday that PHP125 million in confidential funds was allocated to settle 'obligations already incurred.' Ortonio affirmed that OVP initially sought PHP250 million in 2022 but only half was released.

According to Philippines News Agency, Mae Divinagracia, private counsel for the House prosecution, highlighted inconsistencies in the OVP's 2022 accomplishment report, which claimed full implementation despite receiving just half of the requested amount. Ortonio confirmed this discrepancy and acknowledged a letter sent by the OVP to the Commission on Audit (COA) on November 30, 2024, refuting claims that the funds were expended in merely 11 days.

The letter from the OVP stated that on December 20, 2022, a cash advance was made to 'facilitate payment for obligations already incurred.' Ortonio confirmed signing this letter. Senate impeachment court presiding officer Senator Francis Escudero queried the meaning behind 'obligations already incurred,' to which Ortonio explained these were pre-arranged activities awaiting funding.

Ortonio confirmed that during October through early December 2022, there was no fund allotment for OVP's confidential obligations. Divinagracia challenged Ortonio on whether government obligations could exist without an appropriation, to which he affirmed. She also cited the joint circular stipulating cash advances should precede expenditures, something Ortonio acknowledged.

Divinagracia also scrutinized the OVP for inconsistent narratives regarding the usage of confidential funds. She pointed out varying justifications across documents, including good governance, socio-economic delivery, and surveillance activities. Ortonio admitted these inconsistencies when questioned by Escudero.

Divinagracia suggested potential deceit or a 'scam' due to these discrepancies, but the defense objected, and Escudero sustained the objection. Ortonio confirmed that Vice President Duterte originally requested the PHP250 million from the Department of Budget and Management (DBM), approved disbursement vouchers, and signed liquidation reports.

Divinagracia labeled Duterte as the 'architect' of the fund controversy, which the defense objected to. Escudero advised using more neutral terms, questioning whether all actions related to the funds were known and authorized by Duterte. Ortonio affirmed that the Vice President was aware and involved in the implementation of the confidential activities.

Senator-judge Alan Peter Cayetano advised both sides to choose their words carefully, as they could have repercussions beyond the courtroom. He stressed the importance of circumspection in language. Divinagracia apologized for any strong language but maintained the prosecution's commitment to truthfully addressing the issue.