Tightening of intel fund use will not affect operations, says AFP

MANILA, Philippines - The military said yesterday efforts to tighten the use of intelligence funds will not affect its operations and claimed that it is undertaking measures to prevent corruption.

Armed Forces spokesman Commodore Miguel Rodriguez said they have been boosting reforms in their financial system even before the Department of Budget and Management (DBM) bared plans to come up with stricter rules on the use of intelligence funds.

The DBM has vowed to closely monitor the use of intelligence funds amid reports of their misuse by the Philippine Charity Sweepstakes Office (PCSO) under the previous administration.

“I don’t think it (stricter rules on intelligence funds) will (affect our operations). We have procedures in place,” Rodriguez said.

He said the military corruption controversy, which erupted before the PCSO fund mess surfaced, had provided them the opportunity to improve their systems.

“We tried to actually look at ourselves and analyze how we can strengthen the accountability and responsibility in the military. That is the marching orders of the President,” Rodriguez said.

He said Armed Forces chief Gen. Eduardo Oban Jr. had directed field units and officers to properly manage their resources.

“He (Oban) said there should be accountability. We should ensure effective use of resources given to us be it money or personnel,” Rodriguez said.

Last Tuesday, Budget Secretary Florencio Abad said all intelligence funds would be subject to strict liquidation.

He said mere certification that the funds were used for confidential and intelligence purposes will no longer be allowed.

Abad made the statement after former PCSO general manager Rosario Uriarte admitted during a Senate hearing that more than P325 million in intelligence funds had been released in a span of three years under the previous administration.

Abad noted that intelligence funds were disbursed even if PCSO officials were not part of the security forces.

He said the P160-million PCSO intelligence fund last year was larger than the P157.4-million intelligence fund of the defense department and the military.

Uriarte had admitted that the PCSO intelligence funds were used as “blood money” to save Filipino migrant workers on death row and finance relief efforts.

Even before the PCSO fund controversy, the defense department has recommended the audit of military intelligence funds to curb irregularities.

Defense officials said the funds, which are exempted from state audit, would be reviewed in an executive session to avoid jeopardizing national security.

The proposal to audit the intelligence funds came after former military budget officer George Rabusa revealed that former armed forces chiefs got hefty sums upon their retirement.

Rabusa claimed some funds had to be diverted to ensure the availability of the slush funds.