The Armed Forces of the Philippines (AFP) vowed Wednesday, July 14, that it will improve the implementation of its modernization program after the Commission on Audit (COA) flagged the military over 41 projects worth P6.8 billion that remain unfinished within the contract period.

In its 2020 annual audit report, state auditors flagged the AFP for 41 projects with an aggregate cost of P6,812,295,233.40 that were not completed within the contract period; P940,463,472.13 worth of projects that were suspended; and a P12,212,589.83 procurement that was terminated.

Captain Jonathan Zata, chief of AFP public affairs office (PAO), acknowledged the findings of the COA but he clarified that only 22 modernization projects were not yet completed as of June 30, 2021.

"There were delays in the implementation of some AFP Modernization Program Projects. This was the result of unforeseeable circumstances, issues with licenses, clearances and site possessions, and some due to constraints by the manufacturers or contractors themselves," Zata said.

According to Zata, the delayed projects represent about 1.37 percent of the total P495.6 billion worth of projects under the Revised AFP Modernization Program (RAFPMP).

He said the armed forces has already completed P114.6 billion worth of projects while P381 billion worth of projects are currently on-going.

"Generally, the AFP is meeting its targets in its AFP Modernization procurement projects but we are still working to do better," he said.

"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," he added.

In managing the delayed projects, Zata said that the AFP has been "strictly following pertinent provisions of the Government Procurement Reform Act" or Republic Act No. 9184 which led to the suspension and termination of some projects.

"Appropriate liquidated damages have been imposed, performance bonds confiscated, and even contracts terminated. These were all based and being complied to ensure that AFP is compliant with the said procurement law," he explained.

According to COA, some causes of delay, such as the coronavirus disease (COVID-19) pandemic, "may have been beyond Management's control."

"However, issues such as site possession, issuance of government permits, etc. were concerns that could have been anticipated or resolved during the early stages of project planning and implementation," it said.

The COA recommended to AFP that they should "formulate and implement an action plan to put back on track the completion of pending projects."

It also advised the AFP to "enforce, where applicable, the employment of available remedies provided under the revised IRR of RA 9184 such as the imposition of liquidated damages."