THE Bible might have said that money is the root of all evil, but in the Philippines, the blithe use of public money is the root of all controversy. Such was the case when a controversy erupted over the use of confidential and intelligent funds.

Confidential funds are lump sums allocated to national government agencies for classified expenses or for surveillance activities in civilian agencies related to their work.

The guidelines were defined in a 33-page joint circular released by the Commission on Audit, Department of Budget and Management, Department of the Interior and Local Government, Governance Commission for GOCCs, and Department of National Defense in January 2015.

Local government units (LGUs) with peace and order concerns may also get their share of confidential funds. Since this is a lump sum,

agencies have the flexibility to use it as they deem necessary, within the bounds of the law.

Unlike other government spending, confidential funds don’t require public disclosure of their accounting. All the head of the agency has to do is sign a quarterly certification that such public money went to a project.

Intelligence funds are also lump sums given to an agency. But this fund is for the uniformed and military personnel to gather information and for other intelligence practitioners to do their work on national security.

Agencies eligible for intelligence funds include the Department of National Defense (DND), the Armed Forces of the Philippines (AFP), the Philippine National Police (PNP), the Philippine Coast Guard (PCG), the National Intelligence Coordinating Agency (NICA), and the Philippine Drug Enforcement Agency (PDEA).

Where should the confidential funds go? The joint circular specifies that they can only be used for the following:

– Purchase information for projects relevant to national security and peace and order

– Rent for transport vehicles related to confidential activities – Rent and the incidental expenses to maintain safehouses – Buy or rent supplies, materials and equipment for confidential operations that cannot be done through regular procedures

– Pay for the rewards of informers or non-employees of the government agency

– Prevent illegal activities that pose a danger to agency personnel or property.

Confidential and intelligence funds cannot be spent for the following:

– Pay for salaries, wages, overtime, additional compensation, allowance, or other benefits of officials and employees who are employed by the government

– Pay for representation, consultancy or entertainment expenses – Pay for the construction or acquisition of buildings or housing.

In the last year, requests for confidential funds have poured in. They were tucked into the budgets of government agencies.

One of the agencies, the Office of the Vice President (OVP), requested a P150-million intelligence fund supposedly to monitor the security and intelligence situation in the schools.

Earlier, the Department of Education (DepEd) asked for P500 million in confidential funds.

Vice President Sara Duterte heads the DepEd in a concurrent capacity.

Albay Rep. Edcel Lagman said “no stretch of the imagination or flexibility of logic can justify” the OVP’s request for confidential funds since it is not a surveillance agency.

Marikina Rep. Stella Quimbo, who earlier was a magnet for controversy herself for defending Duterte’s confidential funds, pushed for the creation of a congressional special oversight committee to increase transparency in government agencies requesting such funds.

Duterte accessed the funds in December 2022 through a transfer initiated by President Ferdinand Marcos Jr.’s office. Two opposition senators exposed this “irregular use” and raised concerns about the 2024 CIF request.

Duterte justified that confidential funds are important so the citizens “can go about their daily lives without fear, and our children can receive an education in a safe environment, and our businesses can thrive without the shadow of insecurities.”

She also stated that these funds will allow the government to respond swiftly to unforeseen counterterrorism or security challenges.

As more stakeholders raised concern over the CIF allocation of Duterte and other civilian agencies, leaders of major parties in the House of Representatives have agreed to remove the controversial items and realign them to the funding requirements of the National Intelligence Coordinating Agency, National Security Council, Philippine Coast Guard, and Bureau of Fisheries and Aquatic Resources.

Congress does its work

The committee to amend the proposed P5.768-trillion national budget for 2024 removed P1.23 billion in confidential funds.

Appropriations committee chairman Elizaldy Co said the OVP, DepEd, Department of Agriculture (DA), Department of Information and Communications Technology (DICT), and Department of Foreign Affairs (DFA) would get “zero” confidential funds next year.

He said P300 million will be reallocated to the National Intelligence Coordinating Agency, P100 million to the National Security Council, P200 million to the Philippine Coast Guard for intelligence activities and ammunition, and P381.3 million to the Department of Transportation to develop the Pag-asa Island Airport.

Instead of confidential funds, Co said the civilian agencies would receive more funding for their maintenance and other operating expenses (MOOE): P30 million will be allocated to the Bureau of Fisheries and Aquatic Resources (BFAR), P25 million to DICT, P30 million to DFA, and P150 million to DepEd’s Government Assistance to Students and Teachers in Private Education (Gastpe).

Co said the House also realigned P194 billion to fight inflation and “invest in people and the country’s future.”

The committee made the following changes to the proposed 2024 budget to enhance food production and combat inflation:

– P20 billion to the Department of Agriculture for its rice subsidy program

– P40 billion to the National Irrigation Administration (NIA) for solar-driven irrigation pumps and irrigation

– P2 billion to the Philippine Coconut Authority for planting of seedlings

– P1.5 billion for vaccines against the African swine fever (ASF) – P1 billion to the Philippine Fisheries Development Authority to build fishery and post-harvest facilities in Palawan and Kalayaan Island.

Meanwhile, the committee dismissed as “fake news” allegations on social media that the House itself enjoys a P1.6-billion confidential fund. It seems that the CIF controversy has realigned public funds to more pressing matters — for now.