UPDATE RULES. Former Commission on Audit commissioner Heidi Mendoza speaks during a public forum.UPDATE RULES. Former Commission on Audit commissioner Heidi Mendoza speaks during a public forum.

[Pastilan] End the confidential fund madness

2026/01/16 14:02

The Dutertes and their once-shrouded love affair with confidential funds have paraded in the daylight, reading less like public service than a manual in audacious discretion. 

In Davao City, where the shadow of Sebastian “Baste” Duterte looms as acting mayor in the absence of a father who’s been detained in The Hague and unable to take his oath, the coffers spilled a prodigious P530 million on these opaque allocations in 2024, when he was the elected local chief executive. It was a sum that, in the ledger of ordinary civic prudence, could have funded major projects in many other cities, but here it only fed the family’s appetite for secrecy.

To put this in perspective, about half of the Metro Manila city governments, a cluster of far more urban behemoths, spent only P483.93 million. Yet state auditors declared Davao compliant. Compliance, it seems, has become the moral fig leaf behind which mountains of unexamined cash hide.

Must Read

Davao’s P530M confidential funds still top Metro Manila cities’ total in 2024

These funds, modestly labeled “confidential” or “intelligence,” are meant to support peace and order, law enforcement, and occasional surveillance. Yet when it far exceeds the annual expenses of others, one must ask a simple question: who truly benefits, peace and order, or political discretion?

From P144 million in 2016, confidential spending under the Dutertes climbed inexorably to P293 million in 2017, P420 million in 2018, P460 million in 2019, and finally P530 million in 2023, holding steady into 2024. For over seven years, Davao allocated over P2.6 billion to these funds, surpassing even Makati, Manila, Quezon City, and Cebu City. The scale alone suggests not efficiency but obsession.

The other half of Metro Manila’s cities reported no confidential fund spending at all. Makati, Pasig, Las Piñas, Mandaluyong, Navotas, Taguig, Malabon, and Valenzuela showed that local governments can function perfectly well without these shadowy slush funds. This proves that confidential funds are more a political convenience than an administrative necessity.

Come to think of it, local governments, agencies like the Department of Education (DepEd), and government-owned and -controlled corporations (GOCCs) do not really need these funds. The spending itself is redundant – any intelligence information they require can be obtained by simply asking the military or those directly involved in law enforcement.

Such funds are often just a way to funnel cash under the guise of operational secrecy. These resources should be confined strictly to defense establishments and law enforcement, the only institutions whose operations genuinely require secrecy, and not to politicians who have repeatedly demonstrated that they cannot be trusted with taxpayers’ money.

Secrecy, like unchecked power, is inherently corrosive. Confidential funds require minimal documentation, including sealed supporting papers, cash advances that can linger for months, and audits restricted to a tiny unit within the Commission on Audit (COA). The rules are designed to obscure, not illuminate. Cash, of course, is the perfect medium for moral flexibility. A pile of bills in the wrong hands will always become a siren song for mischief.

In many cases, the same official or politician approves, controls, certifies, and oversees the liquidation of the fund, all under oath. This is self-policing in its most absurd form, a recipe for what legal minds delicately call “opportunity for diversion.” Broad categories such as “purchase of information,” “prevention of illegal acts,” and “surveillance” invite a creative interpretation bordering on the artistic. How does one audit a ghost informant or a surveillance that may never have happened?

The Dutertes’ fixation on confidential funds is not a quirk but a family tradition. Under Sara Duterte’s mayorship, allocations more than doubled in a single year. All that happened when her father, Rodrigo Duterte, was the president. Then Baste Duterte followed their example.

As education secretary and vice president, she spent P125 million in just 11 days, a speed that would make even a high-frequency trader blush. And so, it didn’t come as a surprise at all when civil society groups, priests, and former government officials filed in December plunder complaints against her, citing betrayal of public trust and malversation.

Our traditional politicians’ love affair with confidential funds illustrates the simple formula of corruption: monopoly plus discretion minus accountability equals corruption. 

Monopoly of resources means the spender controls the money. 

Discretion means they choose how, when, and on what it is spent. 

And the absence or delay of accountability ensures deviations from legality or morality are rarely punished. 

Repeat this over years, and billions – or trillions – of pesos can move with impunity, all under the banner of “operational necessity.”

If secrecy is necessary for certain government functions, it must be married to accountability, a union politicians like the Dutertes have conspicuously avoided. 

Must Read

Half of NCR cities stop using confidential funds, spending drops 35% in 2024

Some local governments have already shown they can do without confidential funds. Yet the sad truth is that the rest of the country remains at the mercy of a system in which secrecy is celebrated, cash is king, and accountability is optional. Just tally up the local governments in this country. Most of their executives are diving headfirst into these wretched confidential funds, treating public money like a private swimming pool.

Until these funds are confined to the few entities that might actually need them, the noun phrase “confidential fund” will strike less as a legitimate instrument of government and more as a polite euphemism for unchecked political license, the sort of discretion behind which mischief dances.

Who do they think they are, James Bond, or just Bond villains with government salaries? Pastilan.Rappler.com

Must Read

It’s time to update confidential funds circular, says ex-COA official Heidi Mendoza

Market Opportunity
PUBLIC Logo
PUBLIC Price(PUBLIC)
$0.01904
$0.01904$0.01904
-0.15%
USD
PUBLIC (PUBLIC) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

FCA komt in 2026 met aangepaste cryptoregels voor Britse markt

FCA komt in 2026 met aangepaste cryptoregels voor Britse markt

De Britse financiële waakhond, de FCA, komt in 2026 met nieuwe regels speciaal voor crypto bedrijven. Wat direct opvalt: de toezichthouder laat enkele klassieke financiële verplichtingen los om beter aan te sluiten op de snelle en grillige wereld van digitale activa. Tegelijkertijd wordt er extra nadruk gelegd op digitale beveiliging,... Het bericht FCA komt in 2026 met aangepaste cryptoregels voor Britse markt verscheen het eerst op Blockchain Stories.
Share
Coinstats2025/09/18 00:33
Signal No. 1 up in more than a dozen areas amid Tropical Storm Ada

Signal No. 1 up in more than a dozen areas amid Tropical Storm Ada

Storm Signal No. 1 has been raised in more than a dozen areas due to Tropical Storm Nokaen, locally named Ada, according to the Philippine Atmospheric, Geophysical
Share
Bworldonline2026/01/16 14:05
Circle Unveils Cross-Chain Transfer Protocol V2 on Stellar, Expanding USDC Interoperability

Circle Unveils Cross-Chain Transfer Protocol V2 on Stellar, Expanding USDC Interoperability

Circle announced that its Cross-Chain Transfer Protocol (CCTP) V2 is coming to the Stellar network, improving interoperability for USDC, the world’s leading regulated stablecoin. The upgrade will allow users to seamlessly transfer USDC between Stellar and more than 15 other blockchains, including Ethereum, Solana, and Base, unlocking deeper liquidity and wider use cases for the Stellar ecosystem. Seamless Cross-Chain Liquidity Historically, users faced challenges when moving USDC across different blockchains, often relying on custodial bridges or Circle accounts. Liquidity was fragmented, making it difficult to dynamically manage assets between ecosystems. With CCTP V2, Stellar becomes natively interoperable with every other CCTP-enabled blockchain. This integration allows USDC liquidity to flow freely, providing exchanges, wallets, and DeFi protocols with more efficient access. For decentralized exchanges (DEXs), this means better rates for traders, while centralized exchanges (CEXs) can consolidate liquidity rather than maintaining isolated pools. Programmable Transfers for Developers CCTP V2 isn’t just about liquidity—it also introduces programmability. Developers can embed cross-chain USDC transfers directly into their decentralized applications (dApps), enabling seamless integration with the Stellar network. Projects can even include metadata within transfers that can trigger autonomous actions on the destination chain via Hooks, opening up new possibilities for automation and innovation. By building on top of CCTP V2, developers can leverage Stellar’s strengths—fast, low-cost payments and robust offramping options—without having to design complex multi-chain liquidity strategies. This creates a unified development experience across chains and accelerates the adoption of cross-chain finance. Eliminating Bridge Risk with Native Transfers A key innovation of CCTP V2 is its 1:1 burning and minting process. Instead of relying on wrapped tokens or custodial intermediaries, USDC is burned on the source chain and minted natively on the destination chain. This model eliminates bridge risk, improves transaction security, and ensures settlement can occur in seconds. For users and businesses, this means simpler, safer, and faster movement of capital across chains. The efficiency of this model also boosts confidence for institutions that require predictable liquidity and compliance-grade infrastructure. Strengthening Stellar’s Global Payments Role The Stellar network already powers global payments with low fees, near-instant settlement, and a network of 475,000+ MoneyGram locations for fiat on- and off-ramps. With CCTP V2, Stellar extends its role in cross-border finance by linking directly to the broader multichain USDC ecosystem. This upgrade makes Stellar a hub for stablecoin liquidity while enabling new financial applications, from treasury management to cross-chain lending. As programmable money gains traction, CCTP V2 ensures Stellar remains at the forefront of innovation, bridging traditional payments with the multichain future
Share
CryptoNews2025/09/18 22:00