Malacañang has addressed a recent observation from the Commission on Audit (COA) concerning millions in foreign travel funds, clarifying that the issue stems from delayed reimbursements by other government departments.
COA Observation on Unsettled Travel Advances
The Commission on Audit flagged approximately PHP14 million in foreign travel receivables under the Office of the President (OP). The observation was made public in a report, prompting an explanation from the Presidential Communications Office.
During a press briefing on Tuesday, Presidential Communications Office (PCO) Undersecretary and Palace Press Officer Claire Castro emphasized that the COA finding does not indicate any irregularities in the administration's travel expenditures. Instead, it reflects outstanding payments that several government agencies have yet to settle for official multi-agency trips abroad.
Collections Already in Motion, Says Palace
Castro detailed the OP's response, stating that collection letters were issued in April and May of 2025 to address the outstanding balances. She reported significant progress, noting that PHP7,887,555.64, or 55 percent of the total amount, has already been collected to date.
"The OP consistently monitors the outstanding bills through monthly aging reports and the sending of collection demand letters," Castro said, quoting the official OP response to COA.
She explained that the OP initially advanced certain costs for these foreign missions to ensure their smooth execution, a common practice for trips involving multiple agencies. Castro stressed that timely reimbursement is crucial for OP operations.
Legal Processes and Ongoing Monitoring
"They must be paid… the OP cannot function properly without reimbursement," Castro stated in Filipino. She added that the OP itself risks being flagged if receivables remain unsettled, which is why demand letters have been sent through proper legal channels.
When questioned about the reasons behind the payment delays from other agencies, Castro pointed to internal legal procedures that may have contributed. "There are legal processes that must be followed," she said, adding that the OP intends to investigate the specific causes of the delay to prevent future occurrences.
The clarification from Malacañang aims to contextualize the COA observation, framing it as an administrative and inter-agency collection matter rather than a question of fund misuse.
