BCDA remits P1.87B for AFP modernization

MANILA, Philippines - The state-run Bases Conversion and Development Authority (BCDA) remitted a total of P1.874 billion to the National Treasury for the AFP Modernization Fund for the first five months of the year or from the period of January to May 2011.

BCDA President and CEO Arnel Casanova said that it is the share of the AFP Modernization Fund from the net proceeds of non-sale transactions such as lease and joint-venture agreements of former Metro Manila military camps, the biggest two of which are the former Fort Bonifacio and a portion of the Villamor Air Base now developed into Bonifacio Global City and Newport City respectively.

Casanova said that in the month of May alone, the BCDA remitted P29 million to the National Treasury for the Armed Forces of the Philippines (AFP) Modernization Fund.

From May 1993 to end-May 2011, the BCDA has generated P51.021 billion in disposition proceeds and has remitted a total of P33.045 billion to the National Treasury covering the proceeds from both sale and non-sale transactions. Of this amount, a total of P21.223 billion went to the AFP, broken down into P11.727 billion for the AFP Modernization Program and P9.496 billion for the replication of military facilities.

The rest of the P51.021-billion represented payments made to the Bureau of Internal Revenue (BIR) and local government units (LGUs) in the form of national and local taxes and fees, replication of non-military facilities and housing, and compensation for informal settlers.

Casanova said the share of the AFP is directly remitted to the National Treasury and, in turn, the Department of Budget and Management (DBM) is responsible for the programming and releasing the appropriation to the AFP to finance their modernization program.

“After BCDA’s remittance of the funds to the Treasury, BCDA is no longer involved in the utilization and disbursement of these funds, it’s up to the AFP to draw from the fund to finance their modernization program,” Casanova said.

He said that BCDA is continuously remitting to the National Treasury the AFP share in the disposition proceeds as proceeds are realized from its joint-venture and lease transactions.