Senator Risa Hontiveros has urged the Senate to conduct a comprehensive audit on the Armed Forces of the Philippines’ (AFP) modernization program and probe the Bases Conversion and Development Authority’s alleged failure to remit it shares in proceeds to the AFP.
Hontiveros, in filing Senate Resolution No. 520, said it is important to ensure that “vital national security interests are actually upheld” and thus, a “comprehensive audit” of the operations of the BCDA and the AFP’s use of its shares in BCDA’s earnings over the years should be conducted.
Hontiveros filed the resolution amid questions on the remittances being made by the BCDA to fund the military’s much-needed modernization program, noting how the armed forces need sufficient funding to boost its assets as the country continues to face threats of terrorism and China’s pressure on the West Philippine Sea (WPS).
“Ngayong patuloy ang banta ng terorismo at ang pang-gigipit ng China, kailangan natin siguraduhin na may sapat na pondo para sa modernisasyon ng ating sandatahang lakas (Now that we are continually facing the threat of terrorism and harassment from China, we need to ensure we have sufficient funds for the modernization of our armed forces),” Hontiveros said in a statement.
“We need to conduct a comprehensive audit of the proceeds from BCDA’s operations over the years, to determine whether the AFP has been receiving its rightful share of such proceeds to finance its modernization projects,” the senator said.
Hontiveros’ appeal for a legislative inquiry came after AFP Chief of Staff General Gilbert Gapay told lawmakers that the BCDA has failed to remit at least P13.2-billion from its earnings to the Armed Forces, as required by law.
Under the law or Republic Act No. 7898, the BCDA is mandated to remit 35 percent of its proceeds from the sale of former military reservations for the different projects under the multi-year AFP Modernization Program.
However, the BCDA denied the allegation claiming that the amount was “parked” with the Bureau of Treasury and is awaiting appropriation.
“The conflicting claims of these two agencies should be investigated and reconciled. Nasaan na ba talaga ang P13.2-billion na hinihingi ng AFP? (Where is the P13.2-billion that the AFP is asking?),” the lawmaker pointed out.
“Bakit hindi pa ito ginagamit para pondohan ang mga kailangan na barko, eroplano, weapon systems at ibang kagamitan?, (Shouldn’t they be using that to procure additional ships, aircraft, weapons and other equipment?)” she added.
Hontiveros pointed out state auditors, in the past years, have already flagged how the AFP has not been able to receive its share from earnings generated by the BCDA from the sale or disposition of military properties.
A Commission on Audit (COA) report in 2017 showed that the AFP had no share in the proceeds derived from BCDA operations in military camps outside Metro Manila, including the Clark Special Economic Zone. The COA report has recommended that Congress correct this deficiency through legislation.
Hontiveros said another COA report also showed that the AFP was left out and denied its share of earnings when the BCDA donated a property to the City of Taguig in 2008, which the city later leased to SM Prime Holdings Inc. for the development of a community and retail complex which now includes SM Aura.
“Despite the BCDA’s claims of record remittances, the fact remains that there is still a whopping P300 billion worth of unfunded projects in the AFP Modernization Program which are yet to receive a single centavo from the BCDA. Hindi katanggap-tanggap ito, (This is unacceptable),” she said.
“Any shortage of funding for the AFP modernization program seriously threatens our ability to protect Filipinos from various threats, including terrorist attacks and aggression by foreign countries in our territorial waters,” she reiterated.