THE PHILIPPINES’ audit body has told the country’s armed forces to return the money it got from the Malampaya funds, saying the allocation “may not be valid.”
Funds from Malampaya Deepwater Gas-to-Power project -- which represent royalties paid to the government -- can only be used to bankroll energy projects, the Commission on Audit (CoA) said in a report.
As a result, the commission recommended that the Armed Forces of the Philippines (AFP) “remit the funds sourced from Malampaya to the Bureau of the Treasury (BTr) to enable the latter to revert the same to the Malampaya Funds.”
Notice of cash allowances from the Malampaya funds amounting to P61.19 million was transferred from the AFP Modernization Act Trust Fund (AFPMATF) Cash -- National Treasury to the AFPMATF Combo Account to cover the implementation of six Philippine Navy projects in 2013, according to the CoA report.
Notice of cash allowances from the Malampaya funds amounting to P61.19 million was transferred from the AFP Modernization Act Trust Fund (AFPMATF) Cash -- National Treasury to the AFPMATF Combo Account to cover the implementation of six Philippine Navy projects in 2013, according to the CoA report.
Funds were transferred despite a November 2013 Supreme Court decision that declared the use of Malampaya funds unconstitutional for purposes other than to finance energy resource development and exploitation programs and projects.
According to the report, the AFP commented that the Defense secretary had sent a position paper dated March 7, 2014 to the President regarding the restrictions imposed by the Supreme Court on the use of the Malampaya funds. The paper “presented the argumentation that the modernization projects should be considered as part of the Security Projects for Malampaya Energy Exploration and Development.”
Cash deposits from the Malampaya funds that were transferred in December 2013 remains “unutilized while waiting for the results of the Position Paper of the Department of National Defense being forwarded to the President,” the AFP said.
According to the report, the AFP commented that the Defense secretary had sent a position paper dated March 7, 2014 to the President regarding the restrictions imposed by the Supreme Court on the use of the Malampaya funds. The paper “presented the argumentation that the modernization projects should be considered as part of the Security Projects for Malampaya Energy Exploration and Development.”
Cash deposits from the Malampaya funds that were transferred in December 2013 remains “unutilized while waiting for the results of the Position Paper of the Department of National Defense being forwarded to the President,” the AFP said.
Coordination has already been under way between the AFP Resource Management Office and the Defense Acquisition Office “regarding deposits of the amount to the BTr to enable subsequent reversion to the Malampaya funds,” the AFP said.
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