COA report says AFP modernization 'far from being attained'

MANILA, Philippines – The plan to modernize the country’s military is “far from being attained,” according to a report of the Commission on Audit (COA), citing the absence of concrete plans, lack of funding and sluggish procurement process.

In a performance audit on the Armed Forces of the Philippines (AFP), state auditors said these factors contributed to the failure of the Armed Forces to attain its constitutional mandate even as more than P28 billion has been “accumulated” for the program to modernize the military as of the end of last year.

The COA report said the enactment of Republic Act 7898 to modernize the AFP by 2010 cannot be realized because of irregularities surrounding its implementation.

State auditors also noted that as of end 2007, the modernization has accumulated P28,491,428,000 from various sources but it has yet to reach its intended target.

The sources include congressional appropriations, share from the Bases Conversion Development Authority, Government Arsenal, proceeds from AFP assets and interest income.

Except for Force Restructuring and Organizational Development (FROD), all the components of the program have been given specific amounts, mainly, Capability, Materiel and Technology Development (CMTD) with P26.7 million; Bases and Support Systems Development (BSSD) with P1.5 billion; Human Resource Development (HRD) with P150.7 million; and Doctrines Development (DD) with P45.2 million.

“The FROD component was not allotted an amount from the Trust Fund,” COA said, noting that the AFP also did not present targets for the component.

“Considering that the FROD is identified as one of the components of the AFP Modernization, we are concerned that the absence of plans and targets to be accomplished can affect the attainment of the objectives of the program specifically on the area of organizational structure and jurisdiction,” COA said.

As for the plan’s BSSD component that seeks to maximize the defense facilities of the military, COA learned the projects, like the upgrading of camps, had a “low percentage of accomplishment.”

State auditors also noted the same level of accomplishment in projects for the DD component even if the funds had been released.

The reasons cited by the AFP for the low level of accomplishment were the “difficult and tedious process” and lack of funding and personnel for these projects, according to the COA.

This particular component concerns the development and modification of doctrines “to serve as the foundations for the development, employment and deployment of Philippine forces.”

Regarding the HRD component, which involves training and educating military personnel, COA noted that of the four major military services, only the Army has been implementing the HRD component.

“Further, it was observed that no plans and targets were prepared for monitoring and evaluation purposes,” COA said.

“The absence of goals to guide AFP management deprived them of significant evaluation information/inputs in their decision making, thus may result in delayed or inefficient implementation of projects,” the report stated.

As for the CMTD component, even as it was given the biggest bulk of the budget, only 20 of the total of 152 projects have been implemented. COA also noted there were delays in this aspect.

“While it is logical to think that delays can be encountered from approval to the Notice of Award stage due to failure of bidding, it is quite alarming to note that it takes about two years to prepare a contract for the winning bidder,” state auditors said.

“With the timeline set under the law, it is evident therefore that the procurement process carried out for the AFP Modernization Program is way below standards, thus causing severe delays in the procurement of modernization equipment,” COA said.

The state auditors also said the CMTD still needs to come up with P23 million for the 62 projects it has identified and approved for implementation.

COA said concerned officials must set plans, targets and schedules to ensure the objectives of the program are attained.

The COA report also recommended the review of the procurement process and make representations with Congress for additional funding for the program.

Unliquidated advances

Bayan Muna Rep. Satur Ocampo cited the COA report in pointing out a total of P1.6 billion in unliquidated cash advances by five Army chiefs for the past five years.

Ocampo revealed former AFP chiefs Efren Abu incurred P997.4 million in cash advances in 2003, Generoso Senga P103.5 million in 2004, P69.8 million under Hermogenes Esperon in 2005, P90 million in 2006 under Romeo Tolentino and P335.6 million under Gen. Alexander Yano, now AFO chief of staff.

Abu is now special envoy to Brunei, Indonesia, Malaysia; Senga is ambassador to Iran; Esperon is Presidential Adviser on the Peace Process; and Tolentino has been designated president and chief executive officer of PNOC-Alternative Fuels Corp.

Ocampo lamented the Army had disregarded “significant recommendations” of COA with regard to cash advances, aimed at providing possible solutions to the “pattern of non-liquidation of cash advances.”

COA had suggested that the Army should slap penal or administrative sanctions against erring officials with regards to utilization and liquidation of cash advances.

“Apparently, the Army has ignored these recommendations. This unchecked bad practice affects the lower rank and foot soldiers the most. The House (of Representatives) should consider inserting special provisions in the Army and AFP budgets,” he said.

Ocampo disclosed that in 2007, non-distribution of combat clothing and individual equipment (CCIE) were reported in the Army’s 5th and 7th infantry divisions amounting to P5.7 million.

Overpayments were also made to active militia groups with P1.9 million in the Army’s 5th, 7th and 8th Infantry divisions, as well as double entries of same personnel or similar serial numbers, in the amount of P2.5 million in the 6th Infantry division.

However, Army chief Brig. Gen. Reynaldo Mapagu has denied the allegations of Ocampo.

Mapagu said the Army records showed the unliquidated cash advance for payroll and travel is only P40 million as of Aug. 31 this year.

Mapagu also clarified that out of this amount, about P24 million constitute what they call “inactive accounts,” or those that were left behind by officials who have died, debts under adjudication or were written off.

Mapagu said this amount, including the remaining P16 million, was not incurred during the tenure of the five Army chiefs mentioned by Ocampo.

On the allegations that the Army overpaid P1.95 million to Civilian Armed Forces Geographical Unit (CAFGU) militiamen, Mapagu said they have started the process of clearing the list of all infantry divisions in the Army of any double entries of the names of active auxiliaries.

Moreover, Mapagu said, the overpayments made to subsistence allowances of militiamen who were already terminated were remitted to the Bureau of Treasury.

He also denied allegations that the Army failed to distribute combat clothing and individual equipment to their men.

Mapagu claimed these have been distributed as of last June.

Mapagu said Ocampo was “highly misinformed on the issues.”

“It must be emphasized here that the accountabilities cannot be solely attributed to past Philippine Army commanders or to an employee or whoever is in the position, but as an accountability of the organization as a whole, and the clearing and liquidation of cash advances is a continuing process,” Mapagu said. –With Delon Porcalla, James Mananghaya