The Commission on Audit called the attention of the Armed Forces of the Philippines for 41 modernization projects worth a total of P6.8 billion that have not been completed within the contract period.
In a 2020 audit, state auditors cited that nine other AFP projects worth P940 million were suspended, and that a P12-million project was terminated.
COA also noted in its audit report that 22 AFP modernization projects remain unfinished as of June 30 this year.
Apart from the COVID-19 pandemic, COA credited the projects’ delay to the failure to secure permits that “could have been anticipated or resolved during the early stages of project planning and implementation.”
The AFP acknowledged the delays in the projects but said it has completed P114.6 billion worth of projects since the start of the AFP modernization program, while projects worth P381 billion are ongoing.
“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,” Navy Capt. Jonathan Zata, AFP public affairs office chief, said in a statement on Wednesday.
The AFP assured the public that liquidated damages were imposed, performance bonds were confiscated, and contracts were terminated due to the delays.
COA also flagged the AFP for the procurement of projects, equipment, supplies and services through the Philippine International Trading Corp. (PITC) amounting to P582 million that had also been 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.
They recommended that the AFP urge the PITC to fast-track the procurement, delivery, and completion of the remaining items, or otherwise demand for a refund to be remitted to the Bureau of Treasury.
“We are further (making improvements) to expedite the implementation of these delayed projects. We have already noted important lessons so that it won’t happen in future projects,” Zata said.
He added that these reported delays only represent about 1.37 percent of the total worth of projects.
“Generally, the AFP is meeting its targets in its AFP modernization procurement projects, but we are still working to do better,” Zata said.
In managing these delayed projects, he said the AFP is strictly following pertinent provisions of Republic Act 9184 or the Government Procurement Reform Act.
“Appropriate liquidated damages have been imposed, performance bonds confiscated, and even contracts terminated. These were all based and being complied with to ensure that AFP is compliant with the said procurement law,” he added.