COA cites AFP for delayed modernization projects

MANILA, Philippines — The Commission on Audit (COA) has called out the Armed Forces of the Philippines over its poor implementation of billions of pesos worth of projects under the AFP Modernization Program, a majority of which should have been completed in 2018 and 2019.

“AFP Modernization Projects were not efficiently implemented as indicated by: (a) 28 projects costing P5,727,312,793.35 not completed within the specific contract time; (b) 15 suspended projects costing P3,972,875,480.42; and (c) one terminated contract costing P246,000,000.00,” the COA said in its 2019 annual audit report on the AFP.

The audit body attributed the delays and other problems in the implementation of the projects to AFP’s “failure to conduct detailed engineering investigations, surveys and designs prior to bidding and award of contract.”

The COA pointed out that under Section 17.6 of the Revised Implementing Rules and Regulations (RIRR) of Republic Act 9184 or the Government Procurement Reform Act, “no bidding and award of contract for infrastructure projects shall be made unless the detailed engineering investigations, surveys and designs, for the project have been sufficiently carried out and duly approved in accordance with the standards and specifications prescribed by the Head of Procuring Entity (HoPE) concerned.”

“Had the Management carried out the activities required under Section 17.6 of the Revised IRR of RA 9184, delayed project implementation could have been avoided,” the COA said.

The COA’s breakdown showed that of the 28 delayed projects totaling P5.727 billion, 11 are still ongoing as of Dec. 31, 2019 even if the expected dates of completion or delivery, as stated in the contracts, were in 2018 and early 2019.

Some projects, meanwhile, were completed only in the last quarter of 2019 even if the agreed completion/delivery dates were in 2018.

Among the big projects still ongoing are the “Coast Watch System” upgrade amounting to P256.066 million which was only at 60.91 percent completion rate as of Dec. 31, 2019, even if the agreed completion date was on March 30, 2019; as well as the upgrade of the Communication Electronics and Information Systems Service, Armed Forces of the Philippines (CEISSAFP) Training Center amounting to P20 million which was only 21.21 percent completed as of yearend, even if the agreed completion date was Oct. 1, 2019.

There were also fast boats amounting to P228.12 million and long-range sniper weapons amounting to P48 million which have yet to be delivered as of yearend, even if the agreed delivery dates were on Oct. 7, 2019 and Feb. 12, 2019, respectively.

Meanwhile, 15 projects amounting to P3.972 billion were temporarily suspended for various “issues” that have yet to be resolved.

A “full motion flight simulator” project amounting to P246 million was terminated, though the reason was not stated in the audit report.

The COA directed the AFP to institute the necessary remedies that would fast-track the implementation of the projects such as imposition of liquidated damages against the contractors for the late deliveries or completion of projects as well as disqualification and blacklisting of erring contractors.