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

MANILA, Philippines – Half of the 16 cities in the National Capital Region (NCR) stopped spending confidential funds in 2024, a shift which contributed to a 35% drop in total regional expenditures, from P748.49 million in 2023 to P483.93 million.

One is the city government of Makati which used to be one of the top spenders of confidential funds among local governments in the NCR. But in 2024, it reported no confidential expenses, a reversal from the previous year when it led the list with P240 million. 

The local government of Malabon City took a similar step, eliminating all cash advances for confidential funds despite spending P13.7 million in 2023. 

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Makati and Malabon now join Pasig, Las Piñas, Mandaluyong, Navotas, Taguig, and Valenzuela in avoiding confidential fund expenses in what is seen as a shift intended to promote greater transparency in local budget use. 

But eight NCR city governments – Manila, Pasay, Quezon City, Caloocan, Parañaque, Muntinlupa, Marikina, and San Juan – continued to use confidential funds in their operations. 

Manila reported P120 million in both 2023 and 2024, while Pasay City maintained P80 million in both years. 

Quezon City spent P100 million in 2023 and P75 million in 2024; Caloocan City recorded P60 million in 2023 and P70.5 million in 2024; and Parañaque City remained at P49.5 million in both years.

Muntinlupa City increased its spending slightly, from P44.29 million in 2023 to P47.93 million in 2024. Marikina City and San Juan City kept their confidential fund expenses steady at P25 million and P16 million, respectively, for both years.

Confidential spending by government offices came under intense scrutiny in 2023 after records showed Vice President Sara Duterte spent P125 million in just 11 days in December 2022, even though the 2022 national budget had no allocation for such expenses.

Civil society groups on December 12 filed a plunder complaint against Duterte, accusing her of misusing P612.5 million in confidential funds as vice president and education secretary.

Davao City, where she once served as mayor, had seen a surge in confidential spending during her watch. Its annual confidential expenses rose from P144 million in 2016 to P293 million in 2017 and climbed again to P420 million in 2018.

By the end of her mayorship in 2022, Davao City had allocated over P2.6 billion to confidential expenses, surpassing the spending of wealthier cities such as Makati, Manila, Quezon City, and Cebu City.

Duterte had faced impeachment after a congressional inquiry revealed that hundreds of millions in confidential funds under the Office of the Vice President and the Department of Education, which she once headed, were released under questionable circumstances. She refused to explain before Congress how such funds were used.

On August 8, 2024, the Commission on Audit (COA) issued a notice of disallowance against P73 million in OVP confidential expenses in 2022, citing failure to provide proof of proper use.

Based on Joint Circular No. 2015-01, issued by the COA, the Department of Budget and Management, the Department of the Interior and Local Government, the Department of National Defense, and the Governance Commission for GOCCs, local government confidential spending must be related to peace and order programs.

The circular limits eligible activities to crime prevention and law enforcement, training and capability development for law enforcement personnel and volunteers, and programs addressing illegal drugs, illegal gambling, insurgency, smuggling, human trafficking, illegal fishing, and unlicensed mining and logging. – Rappler.com