Unliquidated cash advances in AFP amount to P14.1 B

Manila, Philippines - About P14.1 billion remain unaccounted for in the budget of the Armed Forces last year.

A special investigating committee of the Department of National Defense (DND) reported to the Senate that the whole cash advance system has proven to be a failure.

Committee members said they had “barely scratched the surface” of a controversy of this magnitude.

“The committee appears to be a mere fragment of the whole, much like a leaf that sways and is pilloried in the storm,” read the report.

“It was difficult to absorb the whole gamut of anomalies in the AFP. Except for a few clear violations that were easily discernible, the other details remain behind a cloud of obfuscation.

“There are clear violations of the laws: loss of records of transactions/withheld records under the guise of national security matter – a convenient way of covering up acts of anomalies, abuse of alternative modes of procurement, and perhaps the most grievous offense is the apparent apathy towards the whole system of corrupt practices.”

In a department order dated April 25, Defense Secretary Voltaire Gazmin ordered the strict implementation on the period to liquidate cash advances and firm compliance with and monitoring of the filing of statement of assets, liabilities and net worth (SALN) of all officers and personnel.

“Considering that the amount of P14 billion as unliquidated cash advance is still a staggering amount, it is imperative that said cash advance be immediately rationalized and promptly liquidated. The liquidation should comply strictly with existing rules and regulations,” read department order 104.

The Office of the Internal Auditor said the AFP has drastically reduced its unliquidated cash advances by 84 percent from its original amount of P87.4 billion last Dec. 31, 2009 to P14.1 billion as of September 2010.

Violators would face disciplinary action and prosecution, Gazmin said.

The AFP chief is required to submit a monthly report on compliance to the order.

Committee members are lawyer Patrick Velez, chairman; and Assistant Secretaries Fernando Manalo and Willie Palugod, and retired Brig. Gen. Fermin de Leon, members. – With Alexis Romero