“We have effectively removed the Armed Force’s discretionary powers by directly [declaring] our remittances with the Bureau of Treasury and have already deposited P300 million since I assumed my post,” said Oban, who added that such move was just a part of the array of financial reforms being implemented in the military to stop the culture of corruption.
The bulk of discretionary funds are accumulated money coming from personnel savings that in practice is placed under the discretion of the Armed Forces chief of staff.
The funds are prone to corruption by way of “conversion” for the pabaon (sendoff gift) and pasalubong (welcome gift) as exposed by former military budget officer retired Lt. Col. George Rabusa.
Oban said when he assumed as chief of staff, he immediately buried the “conversion system” and closely monitored the cash flow of the various military services.
“Internal audits have become more frequent and are performed randomly, ensuring the accountability of every office and unit within the Armed Forces. We have conducted three major internal audits, one terminal audit, one system or financial audit or thrust receipts or a special or unprogrammed audit on alleged conversion of funds for petroleum oil and lubricants, and with regard to the United Nations reimbursement funds,” he said.
Oban said in the process of reforming the financial systems they were able to identify 18 financial and logistical flaws covering five major points: logistics, finance, personnel, training, and discipline law and order.
“Thereafter we successfully conducted a series of vigorous workshops that produced action plans to address these concerns. These workshops culminated in a two-day summit on reforming the Armed Forces’ financial and logistics program on April 26. The Armed Forces financial and logistical reform program is the product of the recently concluded summit from the collective effort of its internal stakeholders,” he said.
Oban said the reform program will serve as the blueprint for improving the military resource management systems composed of major action plans, such as improvement of 72-100 revolving fund utilization, bids and awards committees, logistics organizational structure, disposal program for unserviceable equipment and, most important procurement planning and programming; the implementation of the following proposals, lease-to- own scheme, purchase card system and logistics support and ordering agreement; and the reconciliation of the supply accountable office and accounting books.
