De Lima Proposes Bill for Transparency on Confidential Fund Disbursements

In a significant legislative move, former Justice Secretary and current House Representative Leila de Lima has introduced House Bill 1845, known as the Confidential and Intelligence Funds (CIF) Utilization and Accountability Act. The proposal aims to enhance transparency regarding the disbursement details of confidential and intelligence funds, a significant issue flagged by the Commission on Audit (COA) due to concerns of misuse and malversation of public funds. This bill was filed on July 14, 2025, in the House of Representatives, seeking to limit CIF allocations to no more than 10% of an agency's total budget.

The bill stipulates that while all CIF information and documentation will initially remain confidential, such information will become public once the COA issues a Notice of Disallowance (ND) regarding a specific CIF disbursement. This provision is crucial as NDs are issued when expenditures are deemed 'irregular, unnecessary, excessive, extravagant, or unconscionable.' The legislation further states that agencies will be required to disclose all relevant information without compulsory processes following the issuance of an ND by the COA.

De Lima articulated her motivations behind the bill, citing recent alarming developments concerning the misuse of CIF. According to de Lima, approximately P612.5 million in confidential funds appropriated to the Office of the Vice President (OVP) and the Department of Education (DepEd) were mishandled. These funds were allegedly allocated for activities unrelated to national security or peace and order, raising significant ethical and legal concerns.

"The obvious misuse and malversation of millions in taxpayer money as a result of exploiting the weak and insufficient guidelines on confidential and intelligence funds poses a serious threat to the preservation of public trust in the government and the legitimacy of its institutions," de Lima stated.

The bill seeks to address the following key issues: 1. **CIF Allocation Cap**: The maximum CIF allocation for any single agency should not exceed 10% of its total annual budget unless explicitly authorized by law. 2. **Transparency and Accountability**: Upon issuance of an ND, all CIF-related documents will be subject to public scrutiny, thereby promoting accountability. 3. **Focus on Appropriate Use**: The legislation aims to ensure that CIF is strictly appropriated for justifiable activities and only for agencies tasked with national security and order.

The push for this legislation comes amidst growing scrutiny of the management of public funds in the Philippines. The COA's investigations have uncovered troubling patterns of fund misappropriation, particularly in civilian agencies where surveillance mandates do not apply. The findings of the House Committee on Good Government and Public Accountability indicated that many confidential funds were utilized for non-confidential purposes, with numerous liquidation reports containing errors, forgeries, or misleading information.

De Lima’s proposal reflects a broader call for reform within the Philippine government, emphasizing the necessity of strict guidelines and transparency measures to restore public trust. As the legislative process unfolds, stakeholders from various sectors, including government officials, oversight bodies, and civil society organizations, will likely contribute to the discourse surrounding the efficacy and implications of the proposed bill.

The implications of this legislative initiative extend beyond mere accountability; they challenge the existing frameworks surrounding government funding and oversight. As reported by Dr. Maria Santos, a political science professor at the University of the Philippines, "This bill could mark a critical turning point in how the government handles confidential funds, potentially setting a precedent for future legislative measures aimed at transparency and accountability in public finance."

In conclusion, the introduction of House Bill 1845 by Leila de Lima signifies an essential step towards enhanced accountability in the management of confidential and intelligence funds. As deliberations continue, the bill stands to reshape the landscape of public fund management in the Philippines, fostering a more transparent governance structure. The outcome of this legislative effort will be closely monitored by citizens and advocacy groups alike, as it promises to impact the integrity and trust in governmental institutions significantly.