BCDA generates P29B for military modernization

From the Manila Times (Apr 27): BCDA generates P29B for military modernization

THE state-owned Bases Conversion and Development Authority (BCDA) said on Monday that it has generated P29.16 billion for the modernization of the Armed Forces of the Philippines (AFP) over the past 22 years.

At the same time, it said it remitted P2.2 billion last month to the national treasury covering revenues earned in 2014. The amount represents the national government’s (NG) dividend share and the share of 14 government beneficiary agencies from BCDA’s asset disposition proceeds.

BCDA said that the shares of the AFP and the 14 government beneficiaries were directly remitted to the National Treasury. In turn, the Department of Budget and Management (DBM) will program and release the appropriations to the AFP to finance its modernization program.

The BCDA has remitted to the Bureau of Treasury P2.136 billion in 2011, P528.45 million in 2012, P2.389 billion in 2013, P2.207 billion in 2014, and just recently P2.201 billion in 2015.

The latest remittance to the treasury highlights the solid and consistent financial performance of the BCDA in generating funds for the government, according to BCDA president and CEO Arnel Paciano Casanova.

“Since the start of the [Aquino] Administration, the BCDA has remitted an average of close to P2 billion yearly to the Bureau of Treasury,” Casanova said.

Government dividends

Casanova said of the P2.2 billion remitted to the Bureau of the Treasury last month, P500 million represented dividends to the NG. Pursuant to Section 3 of the Republic Act No. 7656, all Government Owned and Controlled Corporations (GOCCs) are required to declare and remit at least 50 percent of their annual net earnings as cash, stock or property dividends to the national government.

Casanova said the remaining P1.7 billion was the share of several government beneficiaries from the proceeds generated from existing joint venture and lease agreements and assets disposed in 2014.

Pursuant to RA 7917 and EO 309, proceeds from disposition of former military camp Fort Bonifacio, now developed into Bonifacio Global City, and the former Villamor Air Base, now Newport City, are to be shared with BCDA and named beneficiaries.

Under Administrative Order 236, certain government beneficiary agencies are entitled to the disposition proceeds. Getting the lion’s share was the Armed Forces of the Philippines (AFP) with P1.499 billion.

The share of the other government beneficiary agencies amounted to P189.67 million. The remaining P12.75 million represented the shares of the local government units (LGUs) of Taguig, Pateros and Makati.

Casanova said a ceremonial turnover of the P2.2 billion check will be held during the GOCC day usually held at the Malacañan Palace.

Former military camps

Also, Casanova said the BCDA has generated P65.348 billion from the disposition of former Metro Manila camps, the biggest of which are Fort Bonifacio and Villamor Air Base for the period May 1993 to March 2015.

Of the generated P65.348 billion in disposition proceeds for the past 22 years, the AFP got the lion’s share of P29.162 billion. This amount comprised P17.081 billion remittances for the AFP modernization program and P9.496 billion spent for military replication facilities.

Besides what was remitted to the national treasury, the AFP also got some P1.885 billion worth of replicated facilities undertaken by the BCDA, in addition to the recently turned over 12 five-storey residential buildings to the AFP consisting of 192 residential units worth P700 million.

“To date, the BCDA has generated P29.162 billion for the AFP,” Casanova said.

He said that of the generated P65.348 billion in disposition proceeds for the period May 1993 to March 2015, BCDA’s share amounted to P15.512 billion while the share of the 14 government beneficiary agencies under A.O. 236 was at P7.821 billion.

The remaining amount represents payments for taxes and fees related to disposition, replication of non-military facilities, share of the contiguous municipalities and direct expenses consisting of relocation of informal occupants, construction of site development projects, and administrative expenses.

The 14 government beneficiaries include the 1) National Housing Authority, National Home Mortgage Finance Corporation and Home Insurance and Guarantee Corporation; 2) Philippine Health Insurance Corporation; 3) Department of Public Works and Highways and the Department of Transportation and Communications; 4) Philippine Veterans Affairs Office; 5) Commission on Higher Education; 6) Department of Science and Technology; 7) Office of the Secretary, Department of Justice and the Ombudsman; 8) Mount Pinatubo Assistance, Rehabilitation and Development Fund; 9) Bureau of Investigation, Bureau of Corrections, Philippine National Police and the Bureau of Jail Management and Penology; 10) Supreme Court of the Philippines and Lower Courts, Sandiganbayan, Court of Appeals and Court of Tax Appeals; 11) Department of Education, Culture and Sports, Department of Social Welfare and Development; 12) Department of Labor and Employment; 12) Department of Social Welfare and Development; 13) Mount Pinatubo Assistance, Rehabilitation and Development; 14) Philippine Economic Zone Authority.

http://www.manilatimes.net/bcda-generates-p29b-for-military-modernization/178952/