THE Commission on Audit (COA) found that some units of the Armed Forces of the Philippines (AFP) maintained unauthorized bank accounts and failed to liquidate cash advances, based on its 2024 annual audit report.
State auditors cited six bank accounts with a combined book balance of about P72.8 million that were not authorized. It also flagged P201.86 million in cash advances that remain unliquidated, most of them already past due, with some dating back as far as 43 years.
Units cited
The audit showed that three of the unauthorized accounts were maintained by the AFP Medical Center. One account was held by the Presidential Security Command and another by the Eastern Mindanao Command. All accounts were kept with the Land Bank of the Philippines.
COA reported that about 82 percent of the unliquidated cash advances, or P166.25 million, were already past due. These advances were not accounted for within the required period, raising concerns over the management and recovery of public funds.
Response
The AFP said it acknowledged the audit findings and treated them as part of a process to improve governance and financial discipline. It said corrective measures are already in place through the AFP Accounting Center and the AFP Finance Center.
The AFP said it has started withholding the salaries of accountable officers, issued demand letters and pursued administrative and legal action to recover the amounts. It also said efforts are ongoing to locate officers who are no longer in the service to ensure compliance with COA directives.
The AFP said steps have been taken to regularize and close the accounts cited by COA. It said the AFP Medical Center has closed the account linked to the Philippine Charity Sweepstakes Office Endowment Fund, the Presidential Security Command has closed its two accounts and the Eastern Mindanao Command has taken corrective action to comply with government financial rules.
Next steps
The AFP said it is strengthening its financial systems and internal controls to prevent similar findings in the future. It added that it remains committed to transparency and accountability while ensuring uninterrupted support for the welfare of its personnel and continued cooperation with oversight bodies. / PNA