THE Armed Forces of the Philippines (AFP) on Wednesday, July 14, 2021, admitted delays in the implementation of 22 modernization projects, but assured that they were compliant to procurement laws.
The military issued this statement in reaction to the Commission on Audit (COA) report, which noted that the delays have cost P6.8 billion, or 1.37 percent of the total project cost.
The military said the delays were the "result of unforeseeable circumstances, issues with licenses, clearances and site possessions, and some due to constraints by the manufacturers or contractors themselves."
It said appropriate liquidated damages have been imposed, performance bonds confiscated, and contracts terminated.
"We are further improving to expedite the implementation of these delayed projects. We have already noted important lessons so that it won't happen in future projects," it said.
The AFP said it has completed P114.6 billion worth of projects under its modernization program while P381 billion worth of projects were ongoing.
Meanwhile, the AFP said they were addressing the issue on 20 unclosed bank accounts with book balance of P1,812,797,567.87 flagged down by COA.
It said the accounts are for the AFP Modernization Act Trust Fund-Central Office (AFPMATF), AFP Educational Benefit System Office (AFPEBSO), AFP Real Estate Office (AFPREO), and General Headquarters Central Office.
For the AFPMATF, the AFP Procurement Service reported that three accounts were already authorized by the Permanent Committee and that they remitted a total of P62,386,689.47 to the Bureau of Treasury (BTr) from September 3, 2020 to February 3, 2021.
Two accounts were already zeroed out and balances were already returned to the BTr while two remaining accounts shall be closed after the completion of the ongoing modernization projects amounting to P1,228,540,484 which is for payment for ongoing projects
The AFP said the funds will be disbursed as soon as requirements are sufficiently met.
The AFPEBSO, on the other hand, is working for a special provision in the General Appropriations Act in order to maintain the accounts which hold scholarship funds for dependents of soldiers killed in action or incapacitated in line of duty.
It also identifies other bank accounts to be closed in compliance with COA recommendations.
The AFP explained that the AFPREO through the AFP Housing Board has already come up with a resolution approving to close one of its dormant accounts and retain one account which is being maintained for collections on rent of military quarters.
"For the other accounts, the AFP will submit a status report within the time allotted by COA detailing the result of actions taken," the AFP said.
"We are mindful about the zero tolerance of the President on corruption, that is why we are careful with regard to the processes that we undertake. This is also to assure our stakeholders on the AFP's transparent and judicious use of taxpayers' money," it added. (VoxPop Philippines)