Wednesday, July 19, 2006

‘MISSING’ AFP FUNDS BLAMED AT FORMER DBM HEAD

For: CustomsWeek Desk

by: Terence Mordeno Grana

CONGRESSMEN from the House of Representatives feel that both Congress of the Philippines and the Armed Forces of the Philippines (AFP) have been betrayed by the former Department of Budget and Management (DBM) Secretary as they reiterated that the budget for the AFP Modernization Program should have been deposited in a trust fund since 1995.

The Chairman of the House Committee on Good Government, Representative (Rep.) Edgar Lara of the Second District of Cagayan and Rep. Roilo Golez of the Lone District of Paranaque shared the view that former DBM Secretary Salvador Enriquez, Jr. may be held liable for his failure to deposit the AFP Funds in a trust fund.

Rep. Golez said that since Republic Act (RA) No. 7898 or the AFP Modernization Fund Act and the initial remittances of the Bases Conversion and Development Authority (BCDA) to the National Treasury had been made in 1995, the AFP could have already utilized thirty five (35%) per cent of the total amount of P18 Billion for the procurement of the of the modern equipment and facilities.

As coauthor of the aforesaid law, Rep. Golez expressed his disgust, stating that the AFP needs to modernize its equipment for use in their effort against insurgency and external threats. “Like the AFP, Congress was also victimized at this instance,” he added.

Mr. Enriquez failed to appear in the meetings conducted by the Committee despite several invitations sent to him in order for him to air his side on the controversy.

The deliberations on the alleged missing AFP funds, the inquiry, in aid of legislation, were stemmed from the statement made by Department of National Defense (DND) Secretary Orlando Mercado during the hearing of the House Committee on Appropriations in its deliberation of the National Budget for 1999.

Secretary Mercado disclosed in that hearing that the DND has suspended the AFP Modernization Program for the reason that it has not received the appropriated P7.8 Billion proceeds from the sale of government lands in Fort Bonifacio despite the certification issued by the BCDA that the said amount has already been remitted to the National Treasury.

Former DND Secretary Renato de Villa, in his appearance before the body, said that he worked for ten (10) years for the passage of the AFP Modernization Program which was finally enacted into law on February 23, 1995. However, he said that he was not aware of the transaction made between BCDA and the National Treasury on the sales proceeds of government lands in Fort Bonifacio.

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