AFP has unlisted donated sniper rifles, equipment worth P78M, says COA

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 THE Commission on Audit has called the attention of the Armed Forces of the Philippines (AFP) on unrecorded properties, including sniper rifles worth P56.63 million and other various equipment donated by foreign governments and private companies.

In the 2021 audit of the General Headquarters AFP released last August 3, government auditors said 50 caliber .50 M93 Black Arrow sniper rifles from San Miguel Corporation were “not recognized in the books” even if these had Deeds of Donation.

Each rifle had a price tag of P1,132,552.

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Based on audit records, 37 of the rifles went to the Philippine Army, 11 to the Philippine Navy, and one each to the Philippine Air Force and the Intelligence Service of the AFP (ISAFP).

Also duly documented but still unrecorded were one unit of AI Sater System worth P6.58 million donated by the Kingdom of Jordan to the Philippine Army, and a P1.926 million 10-wheeler Wing Van donated by Philippine Long Distance Telephone Co. (PLDT)—Smart and One Meralco Foundation Inc. to the GHQ-Headquarters Service Command (HSC).

In addition, various equipment delivered by Smart Communications Inc. valued at P13.7 million in lieu of rental payments for 2019 to 2021 were also not recorded in the agency’s property, plant, and equipment account (PP&E).

The audit team reminded the AFP that all gifts and donations are required to be recognized as assets and revenue under the Government Accounting Manual (GAM).

The COA recommended that the AFP leadership require responsible offices to submit all records of donated properties to the AFP Accounting Center, including the deeds of donation and the inspection and acceptance reports so that the entries for depreciation can be made.

The GHQ-AFP replied that 90 percent of all donated property or P58.554 million out of P65.14 million were already recorded in its books as of December 31, 2021 with accumulated depreciation recorded at P35.69 million.

It added that the AFP Accounting Center is making regular coordination with the Supply Accountable Officers to reconcile its records.

On the other hand, auditors found 29 motor vehicles in the books of the Presidential Security Group (PSG) even if they remained registered in the names of third parties and other government agencies, making the issue of ownership doubtful.

Reports on the physical count of property, plant, and equipment (RPCPPE) showed the vehicles were donated to the unit from 2006 to 2019 but their titles were never transferred to the PSG even if the Property Acknowledgment Receipts (PARs) showed they were being used by various officers.

Among the vehicles were five Toyota Revos donated way back in 2006, eight Toyota Innovas delivered in 2015, a Toyota Coaster and a Hi-Ace Ambulance both donated in 2015, and various other vehicles donated in various years.

While the acquisition cost listed their values at P29.13 million, depreciation has reached P27.44 million, leaving a carrying cost of only P1.69 million.

The AFP accountant said the registration of the vehicles are no longer practical at this point since all of them are now listed as unserviceable.

It said it will just be wasting funds and efforts if the 29 vehicles would still be registered in the name of the PSG since they are now bound for the scrap yard.   

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