The Armed Forces of the Philippines (AFP) on Friday, Jan. 30, rejected claims on social media that portrayed findings of the Commission on Audit (COA) as alleged proof of corruption within the organization.

Colonel Xerxes Trinidad, chief of AFP public affairs office, said certain social media users misrepresented COA’s 2024 Annual Audit report which flagged P201.86 million in unliquidated cash advances and P72.86 million in unauthorized bank accounts of the military.

“The COA observations are intended to further strengthen accounting procedures, internal controls, and financial management systems. However, certain narratives circulating on social media have selectively cited portions of these observations and misrepresented them as findings of corruption, a claim not supported by COA’s conclusions,” he said.

Earlier this month, COA flagged P201.86 million in unliquidated cash advances of the AFP, and of the amount, P166.25 million or 82.36 percent was already past due. Some advances have remained unsettled for as long as 43 years and state auditors warned that the funds were likely already spent and that asset and expense accounts may be misstated.

In response, the AFP said that the amounts covered funds released for official purposes such as transportation, field and operational support, medical aid, and humanitarian assistance. These were used in time-sensitive missions, especially in areas where banking and check-based disbursements were impractical, it added.

“These amounts were pending liquidation in the accounting records at the time of audit. These funds were not lost, stolen, or misappropriated,” Trinidad explained.

As of Sept. 30, 2025, the AFP said P178.72 million of the P201.86 million cited had been liquidated, representing an 82.36 percent liquidation rate. Meanwhile, the remaining balance stands at P23.13 million.

The AFP said it continues to issue demand letters and enforce accountability against responsible officers, and added that recovery efforts are ongoing, including cases involving resigned, AWOL [absent without leave], or deceased accountable officers.

In cases beyond the prescriptive period or where recovery is no longer feasible, the AFP said it is formally requesting COA approval for write-offs “strictly in accordance with existing rules and regulations.”

Audit records by the COA also showed that six Land Bank of the Philippines (LBP) accounts with a total balance of P72.86 million were maintained without legal basis by the AFP and should have been closed and reverted to the Bureau of the Treasury, as required under the 2024 General Appropriations Act.

Three of the accounts were maintained by the AFP Medical Center with P68.17 million, two accounts belonged to the Presidential Security Command with P4.36 million, and one account was under the Eastern Mindanao Command (Eastmincom) with a balance of P335,386.

The funds involved included collections for military quarters allowance, inter-agency transfer funds, a Philippine Charity Sweepstakes Office (PCSO) endowment for the AFP Medical Center, and professional fees from the Philippine Health Insurance Corporation.

In compliance with COA directives, the AFP said it closed five of the six accounts cited while the corresponding balances were remitted to the Bureau of Treasury.

The military said it coordinated with the Permanent Committee Board to retain one account which will serve as an authorized repository for inter-agency funds supporting projects and programs of national government agencies (NGAs) and government-owned and controlled corporations (GOCCs).

The military emphasized that it has not been involved in any corruption as proven by the “Unmodified Opinion” it received from COA for seven consecutive years, covering calendar years 2018 to 2024.

“An Unmodified Opinion means that the financial statements present fairly, in all material respects, the financial position and operations of the AFP in accordance with International Public Sector Accounting Standards (IPSAS),” Trinidad noted.

The AFP further shared that an Unmodified Opinion does not mean the absence of audit observations but the issues raised were corrected or are not material, either quantitatively or qualitatively.

“The AFP remains steadfast in its zero-tolerance policy against corruption, its adherence to due process, and its continued cooperation with COA and other oversight bodies,” Trinidad said.