FORTY-ONE projects of the Armed Forces of the Philippines (AFP) with a combined cost of P6.812 billion have failed to meet completion deadlines based on the contracts signed with contractors, nine projects worth a total of P940.46 million were suspended, and one project amounting to P12.21 million was terminated.
These were revealed in the 2020 audit of the AFP released by the Commission on Audit last July 9, as it told the armed forces to impose liquidated damages against defaulting contractors.
Among the 41 projects listed by the audit team were the P2.68 billion air defense surveillance radar that was supposed to be completed in November 2018, the P4.873 billion acquisition of six close air support aircraft supposed to have been delivered November 30, 2019; and the purchase of 37,774 body armors vests worth P1.023 billion which was fully delivered only on November 16, 2020 past the target of March 12, 2020 for the third and last batch.
The COA also listed the P407.41 million procurement of light rocket launchers where the notice to proceed was issued June 1, 2018 with delivery expected within 180 days; the P262.35 million radar basing support system for completion back in October 30, 2018; the P256.066 million (North) Coast Watch System that was meant for completion on March 30, 2019; and the P228.12 million procurement of fast water craft which has missed its delivery date on June 30, 2019.
While auditors noted that some of these projects can validly cite the COVID-19 pandemic as a cause of delay, it noted that most of the contracts were supposed to have been fully delivered or completed before the health crisis.
“Some causes of delay, such as the COVID-19 pandemic, may have been beyond management’s control. However, issues such as site possession, issuance of government permits, etc., were concerns that could have been anticipated or resolved during early stages of project planning and implementation,” the COA pointed out.
Among the suspended projects were the P498.002 million Jacinto-class Patrol Vessel (JCPV) combat system alignment (Phase 3A), and the P351.58 million Philippine Navy Support Logistics (construction on concrete road and asphalting)
The AFP’s Defense Procurement Office assured the COA that it is aware of the timetables of each project and is exerting efforts to monitor and push for their completion.
It said extension of the timeline were granted due to “reasonable and unforeseen circumstances that were outside its control.”
It added that its officials are regularly in contact with contractors for project management reviews and that technical working groups are working with proponents to resolve issues as they arise.
The AFP likewise agreed with the audit team that issues such as site possession, and issuance of government permits should have been anticipated and resolved during the early stage of procurement process.
