Armed Forces of the Philippines (AFP) Chief of Staff General Gilbert Gapay defended the P28-billion military modernization fund under the proposed budget of the Department of National Defense (DND) and its attached agencies for next year, saying the amount is needed to sustain the military’s capability program and meet its continuing financial obligations under previously acquired projects.
The top military chief itemized upcoming procurement and financial obligations as Senate Minority Leader Franklin Drilon questioned him over what the senator called as the AFP’s “capacity to disburse,” noting that out of the appropriated P25-billion modernization fund under the current budget, only about 60 percent has only so far been utilized.
According to Drilon, only about P16 billion of the P25 billion that was allocated for this year’s modernization use of the AFP and its major armed services was spent for this year, although the upcoming appropriation is just more than two months away.
Sen. Imee Marcos, on the other hand, noted that projects, or spending under the military modernization program, keeps on appearing in the list, even citing a report from the Commission on Audit, which showed that only five out of 23 projects by the Navy that have been funded for years were delivered, or accomplished.
For next year, the military has proposed an allocation of P38 billion for its modernization program, P25 billion of which would be coming from the General Appropriations Act.
According to Defense Secretary Delfin Lorenzana, who was joined by Gapay and other military officials in defending the Department of National Defense’s budget before the Senate Finance Committee on Monday, the P38 billion include the P5 billion that the military counts as its share for this year from the Bases Conversion and Development Authority (BCDA).
Lorenzana said during the budget hearing presided by committee vice chairman Sen. Panfilo Lacson that they were also hoping to get another P2 billion from the BCDA as the military’s share for 2021.
Gapay said that the proposed modernization allocation for next year will support “pressing” AFP programs, including the continuing procurements for the Army, Air Force and the Navy, and to support the military’s anti-Covid-19 response.
For one, he said the money will fund the multiyear obligation contracts that it has entered into with the sources of some of its acquired assets and equipment, especially their second and third tranches of payments, and will fund the procurement of aircraft, naval assets and land combat assets.
It will also support the operationalization of the Army’s 11th Infantry Division based in Sulu and the acquisition of night fighting systems of the Army, as well as beefing up the cyber warfare capability of the whole military.
During the hearing, Lorenzana admitted that at least P8 billion have been taken away by the Department of Budget and Management (DBM) from the modernization money for this year and realigned it for the government’s pandemic response under the Bayanihan law.
Lacson corrected Lorenzana and said the total amount was higher at P19 billion, as the DBM also realigned P9.4 billion out of the modernization funds for that year under Bayanihan.
Drilon and Lacson questioned why the DBM was reinstituting the P8 billion under the modernization budget for next year, instead of the P9.4 billion that was realigned in 2019.
Drilon asked for papers supporting the disbursement and procurement plans of the military.
Image credits: AP/Bullit Marquez