COA flags AFP over P1.8 billion in ‘unauthorized’ bank accounts

MANILA, Philippines — The Commission on Audit (COA) flagged the Armed Forces of the Philippines (AFP) over its failure to close 20 unauthorized bank accounts with a total balance of P1.813 billion.

In its 2020 annual audit report on the AFP general headquarters (AFP-GHQ) released yesterday, the COA said that under the 2020 General Appropriations Act, all government agencies are directed to close down and revert to the national treasury all the balances of their special accounts, fiduciary or trust funds and revolving funds “when there is no legal basis for their creation.”

The COA said the bank accounts were maintained without the required authority from the Permanent Committee, which was created under the Administrative Code of 1987 and is composed of the finance and budget secretaries as chairpersons and COA officials as members.

The COA said the AFP’s unauthorized bank accounts are maintained with the Land Bank of the Philippines, Development Bank of the Philippines, Philippine Veterans Bank and United Coconut Planters Bank.

The COA’s breakdown showed that AFP Modernization Act Trust Fund-Central Office (AFPMATF) was responsible for three unauthorized bank accounts with a total balance of P1.346 billion; the AFP Educational Benefit System Office, eight bank accounts with a balance of P347.483 million; AFP Real Estate Office, with two bank accounts with a balance of P84.362 million and the GHQ Central Office with seven bank accounts with a balance of P37.744 million.

The COA noted that Finance Secretary Carlos Dominguez wrote a letter dated June 19, 2020 to Defense Secretary Delfin Lorenzana recommending that he order the closure of the AFPMATF bank accounts and remit to the national treasury the outstanding balances.