Lawmakers: AFP unrest just rumors

Administration congressmen laughed off yesterday reports of new restiveness in the Armed Forces of the Philippines, calling the reports "plain rumor."

Isabela Rep. Rodolfo Albano III said soldiers should not worry about the decision of Defense Secretary Avelino Cruz and the leadership of the Armed Forces of the Philippines to abolish the AFP Retirement and Separation Benefits System (RSBS).

He said the RSBS has been badly mismanaged over the years and closing it down would prevent further dissipation of its resources and soldiers’ contributions to the RSBS fund.

In fact, during the Estrada administration, then defense secretary Orlando Mercado tried to padlock the RSBS after exposing widespread misuse of the soldiers’ money, Albano said.

AFP chief Gen. Hermogenes Esperon also pointed out that the abolition of the RSBS was among the recommendations of the commission headed by retired Justice Florentino Feliciano, which was formed after the 2003 Oakwood mutiny to draw up reforms in the AFP.

"No one will be happier about the RSBS abolition than the soldier," Esperon told The STAR last night.

"I think our soldiers know in their heart that the decision taken by the defense and military leadership is for their own benefit," he added.

Two other congressmen, Antonio Cerilles of Zamboanga del Sur and Monico Puentevella of Bacolod City, supported the decision to abolish the RSBS.

"AFP members are aware that the RSBS problem has been brewing since previous administrations, and many of the faulty investments and mismanagement occurred before President Arroyo’s term," the two said in a joint statement.

They said those trying to exploit the decision to close down the retirement system are the usual destabilization suspects and rumormongers.

Like Albano, Cerilles and Puentebella expressed confidence that soldiers won’t listen to those spreading false rumors.

"To use the RSBS issue to instigate another adventurism among our soldiers is an insult to their intellect," they said.

RSBS reportedly still has assets worth about P10 billion. According to Cruz, these would be transferred to the LandBank of the Philippines for liquidation. The proceeds would then be invested and used to answer claims from soldiers.

The system invested heavily in golf courses and real estate during the time of former AFP chief general Lisandro Abadia. It lost money when real estate prices, including those of golf shares, fell.

Efforts to better manage RSBS, which included the installation of a civilian professional manager, have obviously failed.

In a television interview, Cruz said they would plan for a pension fund that would replace RSBS and which should be better managed.

He said RSBS was "structurally flawed" from the beginning. He did not elaborate.