Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Batasan Hills, Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 1467 
Introduced by ​
HON. ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 
EXPLANATORY NOTE 
Confidential and intelligence funds are governed by the General Appropriations Act (GAA), 
which requires approval by the appropriate department secretary for their release, as outlined in 
Section 83 of the 2022 GAA. These funds are meant to support surveillance and security-related 
functions of civilian agencies. 
However, over time, various issues have emerged in their use—chief among them, the lack of 
clear safeguards and accountability. It wasn’t until Joint Circular No. 2015-01 was issued by the 
COA, DBM, DILG, GCG, and DND that minimal guidelines for the release, use, and audit of 
such funds were established. Even then, the rules remain vague and overly permissive, 
particularly when it comes to liquidation. 
House investigations have since revealed troubling findings: confidential funds were granted to 
agencies with no mandate in public safety or national security; funds were spent without clear 
linkage to legitimate agency programs; anonymous reward payments were made; and 
transactions were documented only with unsigned or illegible receipts, lacking any traceable 
results. 
It is clear that the current framework fails to ensure transparency and protect public resources. 
While the need for confidentiality in certain state functions is understood, it must not come at the 
expense of fiscal discipline. 
July 7, 2025
3:14 pm


This bill seeks to impose stricter controls and close the loopholes in the present system. Its swift 
passage is strongly urged. 
HON. ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Batasan Hills, Quezon City 
TWENTIETH CONGRESS 
Third Regular Session 
HOUSE BILL NO. 1467 
Introduced by  
HON. ATTY. GERVILLE “JINKY BITRICS” R. LUISTRO 
AN ACT REGULATING THE ALLOCATION AND UTILIZATION OF CONFIDENTIAL AND 
INTELLIGENCE FUNDS IMPOSING PENALTIES FOR MISUSE AND MISAPPROPRIATION 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. This Act shall be known as the "Confidential & Intelligence 
Funds (CIF) Utilization and Accountability Act".  
SECTION 2. Declaration of State Policies. The state recognizes the need for the 
allocation and use of confidential and intelligence funds in government agencies with mandates 
that are directly related to national security, law enforcement, and intelligence operations, and 
other related critical functions requiring discretion. It is the policy of the state that the use of such 
funds must be subject to stringent oversight, accountability, and transparency to ensure that they 
are not misused, misappropriated, or diverted for unauthorized purposes. Further, it is the policy 
of the state to maintain public trust in the use of public funds, protect the integrity of government 
operations, and prevent corruption in the management of confidential funds.  
SECTION 
3. 
Entitlement 
to 
Confidential 
and 
Intelligence 
Funds. 
Confidential/intelligence fund shall be allocated to agencies as indicated under the General 
Appropriations Act and to all other agencies, department, units with mandates related to national 
security, peace and order, and intelligence gathering.  
SECTION 4. Limits on Confidential/Intelligence Fund Allocation. The total allocation 
for confidential funds for any single agency, considering the population serviced, shall not 


exceed ten percent [10%] of the total annual budget of the agency, unless otherwise explicitly 
authorized by law.  
SECTION 5. Definition of Terms.  
 
a. Accountable Officer (AO) - refers to every officer of the government whose duties 
permit or require the possession or custody of government and property and who shall be 
accountable therefore and for the safekeeping thereof in conformity with laws and regulations. 
b. Audit and Oversight Authorities - the Commission on Audit (COA), Philippines 
Congress composed of the House of Representatives and Senate, or any other relevant body 
empowered by law to audit government agencies and ensure proper use of public funds.  
c. Confidential Fund (CF) refers to the lump-sum amount released or disbursed to 
civilian government agencies that are intended to support its mandate or operations directly 
related to Confidential Expenses in Confidential Programs for national security and peace and 
order.  
d. Confidential Expenses (CE) - refer to those expenses directly related to national 
security and peace and order, including but not limited to surveillance activities and information 
gathering, in civilian government agencies with mandates directly related to peace and order and 
intelligence gathering  
e. Government-Owned or-Controlled Corporation (GOCC) - refers to any entity 
organized as a stock or non-stock corporation, vested with functions relating to public needs 
whether governmental or proprietary in nature, and owned by the Government of the Republic of 
the Philippines directly or through its instrumentalities either wholly or where applicable as in 
the case of stock corporations, to the extent of at least a majority of its outstanding capital stock. 
The 
term 
"GOCC" 
shall 
include 
Government 
Instrumentalities 
with 
Corporate 
Powers/Government Corporate Entities and Government Financial Institutions, and Subsidiaries 
as defined under Republic Act (R.A.) No. 10149 or the GOCC Governance Act of 2011.  
f. Governance Commission for GOCCs (GCG) - refers to the central advisory, 
monitoring, and oversight body, with authority to formulate, implement and coordinate policies 
involving GOCCs, created under R.A. No. 10149.  
g. Head of Agency (HoA) - refers to the highest official of the NGA and LGU. In the 
case of GOCCs, the HoA refers to the President and/or Chief Executive Officer, who is in-charge 
of the day-to-day operations of the corporation.  
h. Intelligence and Confidential Fund Audit Unit (ICFAU) - refers to the unit created 
under the Office of the Chairperson of the COA in charge of the audit of CF and IF.  
i. Intelligence Fund (IF) - refers to the lump-sum amount released or disbursed to 
military agencies or agencies engaged in intelligence activities, including funds sourced from 
savings.  
j. Intelligence Expenses (IE) - refer to those related to intelligence information gathering 
activities of uniformed and military personnel, and Intelligence Practitioners that have direct 
impact to national security;  
k. Local Government Unit (LGU) - refers to a province, city or, Municipality;  
1. Misuse and Misappropriation of CF and/or IF - the unauthorized use, 
misappropriation, diversion, or expenditure of confidential/intelligence funds for purposes other 


than those specifically approved in the budget or law, or in violation of established ales and 
regulations, including disbursement of confidential/intelligence funds of an agency allocated 
with such budget in the GAA but the mandate is not directly related to national security or peace 
and order;  
m. National Government Agency (NGA) - refers to any department, bureau or office of 
the national government, or any of its branches and instrumentalities, other than GOCCs and 
LGUs;  
n. Notice of Disallowance (ND) - refers to a written notification to the HoA and/or 
accountant informing and requiring the person/s liable to restitute the amount of CE and/or IE 
disapproved/disallowed in audit, either in whole or in part as a result of illegal, irregular, or 
improper disbursement/expenditure of such funds:  
o. Special Disbursing Officer (SDO) - refers to the HoA or a regular employee 
designated by the HoA to be in charge of making disbursements of CF and/or IF so received and 
accountable therefor;  
 
SECTION 4. General Guidelines. Confidential funds shall be allocated to government 
agencies with a mandate directly related to national security and peace and order, or intelligence 
gathering for specific and essential purposes, including, national defense and security operations, 
law enforcement, prevention and response to terrorism and organized crime, emergency 
responses to national crises where the immediate release of information could jeopardize public 
safety or national interests.  
 
SECTION 5. Limitations on Use. - Confidential/intelligence funds shall not be used for 
agency operations not directly related to peace and order or intelligence gathering, political 
activities, personal or private expenditure of government officials or employees, and public 
relations or other non-security-related purposes.  
 
SECTION 6. Reporting and Transparency. All NGAs, LGUs, and GOCCs releasing 
CF and IF shall submit reports on the use thereof to the COA-ICAU for its audit of the CF and IF 
utilization, and other audit and oversight authorities, without compromising confidentiality.  
 
SECTION 7. Public Disclosure - While maintaining the necessary confidentiality, a 
summary of the allocation and purpose of the confidential funds should be disclosed to the 
public, in a manner that does not endanger national security or law enforcement operations.  
 
SECTION 8. Confidentiality and Loss of Confidentiality Status. - With due regard for 
the protection from unauthorized disclosure of classified information relating to sensitive, 
confidential and intelligence matters, all information and documents related to CF and IF are to 
be treated as confidential. However, CF loses confidentiality status and shall be declassified 
immediately once COA issues an ND. The CF, including all the information and documents 
related thereto shall then be subject to inquiries and investigations, with documents and related 
information to be made public, without need of compulsory processes.  
 


SECTION 9. Oversight and Audit. The Commission on Audit (COA) shall have the 
authority to audit the use of confidential funds in all government agencies. COA shall (i) review 
whether the funds were used strictly for the intended purpose, (ii) examine the documentation 
and receipts to ensure proper use, and (iii) conduct random and special audits whenever deemed 
necessary. The COA and other relevant oversight authorities shall conduct special audits or 
investigations if there are reasonable grounds to suspect misuse, fraud, or corruption involving 
confidential funds. Civil society organizations shall be encouraged to monitor the use of 
confidential funds, provided that they respect the confidentiality of sensitive operations.  
 
SECTION 10. Prima facie evidence of misuse and misappropriation. There shall be 
prima facie evidence of misuse and misappropriation of the funds if:  
 
i) There is failure to comply with the documentary requirements evidencing proper 
disbursement and liquidation of the CF and/or IF; 
(ii) Failure to comply with Section 6 of this Act on the submission of reports to Audit and 
other Oversight Authorities, including the Commission on Audit, House of 
Representatives, Senate and the Office of the President; 
(iii)  Disbursement of funds allocated to a government agency, unit or instrumentality the 
mandate of which is not directly related to national security or peace and order; 
(iv)Disbursement of funds to another person who shall make further disbursement of 
funds; or 
v)Disbursement of funds for activities not directly related to national security, peace and 
order, or intelligence gathering for effective implementation of its law enforcement 
mandate.  
 
SECTION 11. Penalties for Misuse and Misappropriation of Confidential Funds. 
The SDO and the HoA shall be jointly and severally liable in case of failure to render accounts, 
misappropriation, or misuse of the funds whether through negligence or intentionally and shall 
include perpetual disqualification from office shall be imposed upon the SDO, including loss of 
benefits.  
 
SECTION 12. Implementing Rules and Regulations. The Department of Budget and 
Management (DBM), in consultation with the Commission on Audit (COA), the National 
Security Council (NSC), and other relevant agencies, shall issue the necessary rules and 
regulations to implement the provisions of this Act and shall produce Implementing Rules and 
Regulations within 90 calendar days from publication of this Act. These rules shall include 
detailed procedures for the justification, approval, reporting, and auditing of confidential funds. 
The Commission on Audit, Bureau of Treasury, Department of Interior and Local Government, 
Governance Commission for Government-owned or -controlled Corporations, Department of 
Budget and Management, and the Department of National Defense shall review and revise their 
existing circulars and joint circulars in accordance with this Act.  
 


SECTION 13. Suppletory Application of the Government Auditing Code and 
Government Accounting Manual. The entitlement, release, use, reporting, and audit of 
confidential and intelligence funds shall not be contrary to the requirements of the Government 
Accounting Manual and must be audited solely by the COA-ICFAU under the Government 
Auditing Code.  
SECTION 14. Prescription of Crimes. The offenses punishable under this Act shall 
prescribe in twenty (20) years.  
 
SECTION 15. Separability of Provisions. If any provisions of this Act or the 
application thereof to any person or circumstance is held invalid, the remaining provisions of this 
Act and the application of such provisions to other persons or circumstances shall not be affected 
thereby.  
 
SECTION 16. Repealing Clause. All laws, decrees, orders, rules, and regulations 
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.  
 
SECTION 17. Effectivity. This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved, 
 
Approved,