Grave corruption in the AFP
Corruption and criminality are rampant in the entire military establishment, among the highest officials of the Armed Forces of the Philippines (AFP), the Philippine National Police (PNP) and the Department of National Defense (DND). Aside from accepting various kinds of bribes in the purchase of military equipment and other supplies, they also head the worst criminal syndicates.
After AFP junior officers dramatically exposed and condemned rampant corruption and repression by the AFP top brass and the Arroyo regime on July 27, the regime could no longer prevent the corruption and anomaly cases in the AFP from being unearthed. On August 18, anomalies in the Government Arsenal (GA) were exposed. According to the Commission on Audit, there is a P77 million difference between the inventory and the actual expenses. The GA is the designated manufacturer of basic weapons, bullets and other police and military equipment. It is under the DND.
The military uses many means to siphon AFP funds. One of them is overpricing. It has been disclosed, for instance, that when the military had Scorpion tanks repaired in 1998, allotting a budget of P200 million, a component known as a contact point which only costs P1,852.50 was overpriced at P30,000.00. The tank's gear box assembly, with an original price of P99,750, was made out to be P12.9 million.
There is also what is called the system of "recycled delivery supplies." In this system, the supplies ordered are intentionally not delivered to the camp in one shipment to make it appear that the first batch delivered is also the next batch delivered.
Even worse is the "ghost delivery" where the AFP does not receive any supplies and the funds intended to procure the military's needs are merely divided among companies and top ranking military officers.
The military also purchases cheaper low quality supplies in order to pocket the money that has been saved. In February 2001, Commodore Guillermo Wong, who was then chief of the Philippine Navy, exposed an anomaly regarding the purchase of Kevlar helmets. The actual shipment was composed of helmets not made of Kevlar and only a fourth of the actual number indicated in the receipt ar-rived�500 instead of 2,000 pieces. The chief then of the Philippine Marines was involved in this anomaly.
"Conversion" is reputed to be the worst form of military corruption. In this scheme, the budget allotted for the military's needs is converted to cash. The money is progressively reduced as the money transfers hands among officials. It is said that 25% is usually deducted and converted to cash by those in charge of approving and auditing the budget. A mere 9-16% of the budget ends up being actually spent to meet the military's needs.
Top-ranking military officers are not only involved in plunder. They audaciously flaunt their plundered wealth through their luxurious lifestyles. Most of them are millionaires. In reality, all of the 37 generals confirmed recently by the Commission on Appointments admitted to being millionaires, based on their submitted statements of assets and liabilities (SAL). The "poorest" among them is worth P1 million, and the richest P13.4 million.
Nonetheless, the SALs do not reflect the real value of the generals' wealth. One example is Defense Sec. Angelo Reyes, who only admitted to having P3.5 million, even as the value of just two of his properties comes to P14 million. One of these properties is a lot in Fort Bonifacio which he valued at P115,000 even if its market value is P4 million. It is on this lot that Reyes is building a palatial home worth over P10 million. In addition, it is the usual practice of government officials not to include their most profitable assets in their SAL.
The AFP generals have their mansions built and their luxury vehicles parked in the AFP Officers' Village Association, Inc. (AFPOVAI) and areas reserved for the Joint US Military Advisory Group (JUSMAG) in Fort Bonifacio.
On the other hand, the majority of the rank-and-file lives in shanties on land being denied them by the government. One example is a community of over a hundred families of retired and active ordinary soldiers in Sitio Kaunlaran, Western Bicutan within Fort Bonifacio. Their houses have been demolished many times. The AFP claims that these areas are slated to be given to military officers.
Successive regimes have skimped on housing for the rank-and-file. A family is assigned a very small place. One example is the housing project in Centennial Village, Fort Bonifacio which was put up during the Ramos regime. Made of cheap materials, the buildings are in danger of collapsing during a powerful earthquake because the cement walls already have cracks in them.
To date, none of the generals and other ranking AFP officials involved in the widespread corruption in the Armed Forces of the Philippines-Retirement and Separation Benefits System (AFP-RSBS) has been punished. During the Estrada regime, it was disclosed that Gen. Jose Ramiscal Jr., in collusion with other officials, pocketed more than P250 million from the pension and retirement funds of ordinary soldiers. Implicated with them was Lisandro Abadia, then the chief of staff. Instead of being punished, many of the officials under investigation were simply transferred to other jobs, with some even receiving promotions. Instead of using the funds for the soldiers, AFP officials invest them in unstable financial schemes and fly-by-night corporations to earn quick money. One of those implicated in this scheme is former Defense Sec. Orlando Mercado.
High-ranking officials pocket the profits from the businesses that they run. For instance, they have pilfered millions of pesos from the golf courses in Camp Aguinaldo and Fort Bonifacio. It is so easy for them to set up businesses in the name of the AFP because no building or business permits are required, and neither are they required to pay taxes. These businesses are not reported or audited as government businesses. They are run as private businesses by ranking officials.
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