The Armed Forces of the Philippines (AFP) said it is tightening financial controls and enforcing accountability after the Commission on Audit (COA) flagged P201.86 million in unliquidated cash advances and P72.86 million in unauthorized bank accounts in its 2024 audit.

In a statement on Monday, January 19, the AFP acknowledged the COA findings and viewed them as “part of a constructive process that strengthens governance and financial discipline.”

“The Armed Forces of the Philippines remains firmly committed to transparency, accountability, and strict adherence to governing policies in the management of public funds,” the statement read.

The 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 it has implemented “corrective measures” including the withholding of salaries of accountable officers, issuance of demand letters, and the pursuit of administrative and legal remedies to recover outstanding obligations through its AFP Accounting Center and in coordination with the AFP Finance Center.

“Efforts are also underway to track accountable officers who are no longer in the service and to recover public funds in full compliance with COA directives,” the military added.

Meanwhile, audit records by the COA also showed that six Land Bank of the Philippines accounts with a total balance of P72.86 million were maintained without legal basis 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.

“On unauthorized bank accounts, the AFP has taken decisive steps to regularize and close the accounts cited in the audit,” the AFP said.

It noted that the AFP Medical Center has closed the account for the PCSO Endowment Fund, the Presidential Security Command has completed the closure of its two accounts, and the Eastmincom has undertaken corrective actions to ensure full compliance with government financial policies.

The AFP said it continues to strengthen its financial systems, internal controls, and accountability mechanisms to prevent recurrence and sustain reforms while ensuring uninterrupted support to the welfare and well-being of its personnel.

“Good governance remains central to the AFP’s mandate. We remain steadfast in cooperating with oversight bodies and in continuously improving our practices in the best interest of our soldiers and the Filipino people,” the military stated.