AFP says it is taking actions on unclosed bank accounts flagged by COA

The Armed Forces of the Philippines (AFP) on Tuesday said it is addressing the issue on 20 unclosed bank accounts that the Commission on Audit (COA) has flagged as unauthorized.

In a statement, the AFP said the 20 bank accounts with book balance of P1,812,797,567.87 are being maintained with several banks.

These accounts are for the AFP Modernization Act Trust Fund-Central Office (AFPMATF), AFP Educational Benefit System Office (AFPEBSO), AFP Real Estate Office (AFPREO), and General Headquarters Central Office (GHQ-CO).

For the AFPMATF, the AFP said three accounts were already authorized by the Permanent Committee and P62,386,689.47 were remitted to the Bureau of Treasury from September 3, 2020 to February 3, 2021.

Two accounts were already zeroed out and balances were already returned to the BTr, it added.

The AFP said two remaining accounts shall be closed down after the completion of the ongoing modernization projects worth P1,228,540,484.00.

“The amount is earmarked as payment for ongoing projects and in accordance with the Government Procurement Reform Act which will be disbursed as soon as requirements are sufficiently met,” the AFP said.

For the AFPEBSO, the AFP said the office is working for a Special Provision in the General Appropriations Act to maintain the accounts that hold scholarship funds as “it also identifies other bank accounts to be closed in compliance to COA recommendations.”

“The Office deemed that it is the best set-up for prompt and timely delivery of financial assistance to its grantees who are dependents of soldiers killed-in-action or incapacitated in line of duty,” the AFP said.

Meanwhile, for the AFPREO, the AFP said the office through the AFP Housing Board will now close one of its dormant accounts and retain one account that is used for collections on rent of military quarters.

“For the other accounts, the AFP will submit a status report within the time allotted by COA detailing the result of actions taken,” the AFP said.

The COA, in its 2020 annual audit report on the AFP, found that the agency failed to close 20 unauthorized bank accounts with a cumulative balance of P1.813 billion.

State auditors said under the 2020 General Appropriations Act (GAA), all agencies are mandated to shut accounts and forward the balances back to the Bureau of the Treasury (BTr) when there is no legal basis for their creation.

The AFP, meanwhile, thanked the COA for presenting the audit findings on the organization.

“We are mindful about the zero-tolerance of the President on corruption that is why we are careful with regard to the processes that we undertake,” it said.

“This is also to assure our stakeholders on the AFP’s transparent and judicious use of tax payers’ money as it continually partners with COA to further improve fiscal management,” it added. —Joviland Rita/KBK, GMA News