Defense Secretary Eduardo Ermita said the modernization program of the AFP would directly benefit from non-sale proceeds — those that are not derived from the outright sale of military camps but from lease, rental and joint venture arrangements with private entities.
"The money will go to the AFP modernization trust fund where some amount will be drawn for the acquisition of some equipment as well as weaponry in connection with the implementation of the AFP modernization program," said Ermita, who received the check from BCDA President Rufo Colayco during the fund turnover at Camp Aguinaldo in Quezon City.
The P639 million represents 50 percent of the total income generated from the use of military camps by private groups, or through joint business ventures using the military’s real estate properties from 1989 up to this year.
Armed Forces chief Gen. Narciso Abaya said the remittance brings to P10.8 billion the funds available to rejuvenate the military, considered among the weakest in the Asia-Pacific region.
Ermita said the money will initially be deposited in the Bureau of Treasury.
The turnover of funds was in line with the joint resolution between the Department of Defense, the AFP and BCDA stipulating that the armed forces and BCDA shall equally partake in the 61 percent of nonsale proceeds.
The remaining 39 percent is set aside to cover direct administrative expenses.
The BCDA was created during the term of former President Fidel Ramos to oversee the sale and conversion of several military camps for private use. Ramos himself was AFP chief of staff of former President Corazon Aquino.
The sprawling Fort Bonifacio in Makati City - home to the Philippine Army - was among the major military camps sold to private groups during Ramos’ term.