COA: AFP projects worth P6.8B not completed within contract period

State auditors have flagged the Armed Forces of the Philippines (AFP) over 41 modernization projects with a total cost of P6.8 billion that were not completed within the contract period.

In its 2020 audit, the Commission on Audit (COA) also noted that nine other AFP projects worth P940 million were suspended while one P12-million project was terminated.

COA said that while some of the causes of delay such as the  COVID-19 pandemic were out of the AFP’s control, other issues such as securing permits “could have been anticipated or resolved during early stages of project planning and implementation.”

In a statement on Wednesday, the AFP acknowledged delays in the implementation of its modernization projects.

“This was the result of unforeseeable circumstances, issues with licenses, clearances and site possessions, and some due to constraints by the manufacturers or contractors themselves,” it explained.

“We are further improving to expedite the implementation of these delayed projects. We have already noted important lessons so that it won’t happen in future projects,” it added.

The AFP also assured the public that liquidated damages were imposed, performance bonds were confiscated, and contracts were terminated due to the delays.

Other findings

Meanwhile, COA also found that projects, equipment, supplies, and services procured by the AFP through the Philippine International Trading Corporation (PITC) totaling P582 million remained unimplemented or undelivered as of the end of 2020.

“This defeats the purpose of availing the services of PITC in a timely manner to hasten project implementation,” state auditors said.

COA urged the AFP to ask PITC to expedite the procurement, delivery, and completion of the remaining items or otherwise demand for a refund to be remitted to the Bureau of Treasury.

State auditors also flagged the AFP over its failure to close 20 unauthorized bank accounts with a cumulative balance of P1.8 billion. —KBK, GMA News