COA to AFP: Insure assets with GSIS

MANILA, Philippines - The Commission on Audit (COA) has advised the Armed Forces of the Philippines Commissary Exchange Service (AFPCES) to have all its assets placed under protection of the Government Service Insurance System (GSIS) instead of patronizing other insurance firms.

In a 2013 report released recently, state auditors said the properties of the military’s procurement arm were insured with Armed Forces and Police General Insurance Corp. (AFPGIC). This violates Republic Act 656 or the Property Insurance Law, which mandates that government assets should be insured with the GSIS, the COA said.

The audit team noted that not all of the property, plant, and equipment and stocks-in-trade were insured, which means that “the interest of the AFPCES is not protected in case of fire, theft, force majeure and the like.”

The COA report recommended that the AFPCES stop the renewal of existing insurance contracts with private insurance companies and insure all property and other assets of AFPCES with the Property Insurance Fund of the GSIS.

In response to the findings, state auditors said officials had started to comply with COA’s recommendation by not renewing all insurance contracts with AFPGIC.