House panel cites OVP exec for contempt over ‘undue interference’

MANILA – The House Committee on Good Government and Public Accountability on Wednesday cited Office of the Vice President (OVP) Undersecretary Zuleika Lopez for contempt on Wednesday over her “undue interference” in the panel’s proceedings investigating the OVP’s use of confidential funds.

ACT Teachers party-list Representative France Castro, who moved to cite Lopez for contempt, cited the letter sent by the OVP to the Commission on Audit (COA), requesting the commission to disregard a congressional subpoena for audit reports on the office’s confidential expenses in 2022 and 2023.

The OVP’s Aug. 21 letter said the subpoena should not be complied with, citing reasons such as a potential violation of the constitutional principle of separation of powers.

“Dito sa letter na ito, Mr. Chair, may plano talaga ang OVP na mag-interfere doon sa ating conduct ng ating proceedings. (This letter clearly shows the OVP intended to interfere with the conduct of our proceedings),” Castro said.

Castro pointed out that Lopez signed the letter, violating House rules on undue interference in the conduct of proceedings.

“May I move na nag-violate si Atty. Lopez dito sa ating proceedings or dito sa ating trabaho (I move that Atty. Lopez be cited for violating our proceedings or in our work),” she said.

House committee chair and Manila Rep. Joel Chua approved Castro’s motion after it was duly seconded.

Lopez, meanwhile, said that the letter was not intended to undermine Congress.

“The premise is that hindi pa po final yung findings ng audit investigation (findings of the audit investigation are not yet final), so we feel that it was not the right time to release it. It was inconclusive,” Lopez told the panel.

Lopez appealed for the contempt order to be lifted, maintaining that it was just a “respectful request” to the COA.

“There was no intention, your honor, to demand from them, or to order them, or to commandeer them into something that they did not want to do. It was really something that we requested of the Commission on Audit. And at the end of the day, it is still the Commission on Audit who will decide best,” Lopez said.

“I would like to request to the members of the honorable committee to lift that contempt order, or to reconsider and grant my request not to cite me in contempt,” she added.

Despite Lopez’s appeal, Castro stood firm on her motion, citing evasive answers and the overall conduct of the OVP undersecretary during the hearing.

Castro proposed that Lopez be detained for five days, or until the committee’s next hearing on Nov. 25.

The House panel is looking into the alleged misuse of PHP612.5 million in confidential and intelligence funds allocated to the OVP and the Department of Education under Duterte’s leadership.

‘Loss of trust and confidence’

Lopez told the panel that the Vice President ordered the resignation of former DepEd Undersecretary Gloria Mercado and three other DepEd officials over a “loss of trust and confidence”.

She said Duterte instructed her to demand the resignation of Mercado, who had testified about alleged irregularities, including the reported distribution of cash envelopes to DepEd officials during Duterte’s tenure as education secretary.

“I was instructed by the Vice President to call USec Mercado and tell her that the principal has lost her trust and confidence in her,” Lopez told the House panel.

When asked by Batangas Rep. Gerville Luistro whether Mercado was given due process, Lopez acknowledged that no formal complaint, hearing, or resolution preceded the demand for her resignation.

“No, Your Honor,” Lopez said.

Luistro underscored the seriousness of Mercado’s removal, pointing to her three decades of government service.

“You will agree with me that this is a very serious thing, asking somebody to resign — somebody who has rendered service in the government for more than 30 years already. Tama po ba? (Is that correct?)” Luistro said.

Lopez reiterated that the sole reason for Mercado’s removal was Duterte’s “loss of trust and confidence”, admitting that the former DepEd undersecretary’s attempts to explain herself were dismissed.

Other officials dismissed

Lopez further revealed that three other DepEd officials — Undersecretary Kris Ablan, Assistant Secretary Christopher Lawrence Arnuco, and Undersecretary Jose Arturo de Castro — were also removed on Duterte’s orders, citing the same “loss of trust and confidence.”

“When I say isolated, ma’am, I use the term in a manner that it is not something I do regularly. It is only upon instruction of the Vice President,” Lopez said, referring to the dismissals.

Luistro argued that the lack of a complaint, hearing or resolution amounted to constructive dismissal.

“What happened to USec Mercado happened also to these three other DepEd officials… And therefore, what you did to them is constructive dismissal,” Luistro said.

Mercado and her colleagues were reportedly given no formal opportunity to defend themselves, raising broader questions about governance and accountability under Duterte’s leadership.

‘Physically impossibility’ of fund disbursements

1-Rider Party-list Rep. Rodge Gutierrez, meanwhile, pointed to the “physical impossibility” of making cash distributions in multiple, geographically distant locations on the same day based on the disbursement records of the OVP and DepEd.

Gutierrez presented acknowledgment receipts (ARs) that showed suspicious disbursement patterns by special disbursing officers (SDOs) from the OVP and DepEd involving confidential funds.

He cited records showing that DepEd SDO Edward Fajarda reportedly disbursed funds in seven different locations across the country on Feb. 21, 2023 after encashing a PHP37.5-million check.

“This is the day after — in seven different locations: Malolos, Davao, San Francisco (Agusan del Sur), Makati City, Negros Oriental, Negros Occidental, and Davao City,” Gutierrez said. “Did this not raise a red flag of the impossibility of this occurring?”

He also cited an extreme case from March 15, 2023, when Fajarda reportedly made 26 disbursements in one day across locations spanning Luzon, Visayas, and Mindanao.

“There is the physical impossibility of the delivery and encashment of the cash. And now even the physical impossibility of the disbursement,” he said.

OVP SDO Gina Acosta was similarly flagged for reportedly distributing over PHP15 million to 103 recipients in a single day on Dec. 23, 2022.

The Joint Circular on Confidential Funds requires SDOs to personally handle and account for each peso disbursed.

Gutierrez, however, suggested some ARs might have been fabricated.

“It really raises the question: How did SDO Fajarda certify and say that he personally disbursed this? From north to south, tip to tip ito ng Pilipinas — may Batanes pa rin po (of the Philippines — even including Batanes),” Gutierrez said.

When asked if these irregularities were flagged during the COA review, lawyer Gloria Camora, head of the Commission on Audit (COA) unit that reviewed confidential funds for both agencies, said they accepted the ARs at face value. (PNA)