DND says military modernization on track as DBM allocates P25 billion for 2016

From the Business Mirror (Sep 8): DND says military modernization on track as DBM allocates P25 billion for 2016
 

THE Department of National Defense (DND) can now pursue its delayed capability upgrade for the military as it acquired additional bigger assets and equipment after President Aquino signed the Armed Forces modernization program.

Defense Undersecretary for Finance, Modernization, Installation and Munitions Fernando Manalo said Mr. Aquino’s approval of the modernization program allowed the defense department to pursue its acquisition of military hardware earlier lined up for procurement.

Some of these projects included the purchase of two frigates fo rthe Navy, air-surveillance radars, close air support aircraft, long-range patrol aircraft, night-fighting system, two C-130 “Hercules” transport aircraft and naval helicopters.

These assets and equipment have earlier been recommended by the defense department to be acquired in order to further beef up the capability of the military, but they hit a snag after Mr. Aquino did not immediately sign the modernization program and ordered a review of the identified procurement.

Earlier, Defense Secretary Voltaire T. Gazmin said that 33 big-ticket projects have been lined up for implementation until 2017, with the procurement totaling for about P90.86 billion.

This included the procurement of a squadron of FA-50 lead in fighter jets from South Korea, two of which were scheduled to arrive in December this year, and eight units of combat-utility helicopters. Both projects have a contract price of P23 billion.

Gazmin said that P9.74 billion have been initially paid for the two projects.

The remaining amount, as programmed by defense officials, should be taken from the funds of the modernization program that Aquino signed.

Gazmin said that from July 2010 up to October last year, at least 46 capability upgrade projects have been “accomplished.”

Included in the 46 projects are eight brand-new combat utility helicopters, three multipurpose attack craft, armaments, equipment, vehicles, force protection articles, coast watch requirements, utility trucks and various equipment.

It also included the acquisition of the frigates BRP Gregorio del Pilar and BRP Ramon Alcaraz and three units of naval helicopters.

The two frigates are 40-year-old US Coast Guard cutters that were sold to the Philippines.

There are still 52 ongoing projects with an approved budget of P26.92 billion.

DBM allocation

THE Department of Budget and Management (DBM) has allocated P25 billion for the modernization of Armed Forces for 2016.

During the budget hearing of the Department of National Defense (DND) at the House of Representatives, Manalo said that under the proposed 2016 budget the Armed Forces Modernization Program will get P25 billion programmed and P10 billion unprogrammed funds.

At least 30 projects are being lined up for the modernization of the Armed Forces, which will be implemented from 2014 to 2017 with a total budget of P83.9 billion.

“The 30 projects that were approved by the President in July 2015 will be paid by multiyear obligational authority,” Manalo said.

In the same hearing, Gazmin said that the DND is allocated a total of P158.8 billion for 2016.

He said that the DND 2016 budget is P16.5 billion higher than its 2015 billion allocation.

Gazmin said that of the agency’s total budget, P63.3 billion is for personnel services, P26.7 billion for maintenance and other operating expenses and P25.7 billion for capital outlay.

Gazmin said that the allocation for veterans and military pensioners, which is lodged under the pension and gratuity fund is P43 billion of the total budget proposal.

Not much to show

PARTY-LIST Rep. Terry Ridon of Kabataan, meanwhile, asked Gazmin to detail how the military spent the P82.48 billion plunked into the modernization program since 1995.

Ridon said the Armed Forces Modernization Act approved that year contemplated on a strong Armed forces that can defend the national territory and sovereignty.

The law was envisioned to establish a modern military and not an Armed Forces that is engaged relentlessly in counterinsurgency.

“While the Department of National Defense is keen on emphasizing the need to strengthen our nation’s maritime defense, we have to put this budget request in context. Since the enactment of the Armed Forces Modernization Act in 1995, Congress has been appropriating billions for military modernization annually. It’s already 2015, and we still have weak maritime defense and creaking World War II-era ships. So, we need to ask the DND and the Armed Forces to report on where the billions sunk into the modernization program went,” Ridon said.

He revealed that President Aquino was the biggest spender at P50.73 billion, followed by President Gloria Macapagal-Arroyo at P26.22 billion spread over nine years, former President and now Manila Mayor Joseph Estrada at P5.53 billion, and zero for former President Fidel V. Ramos, who pushed for the enactment of the bill.

Ramos is a former Armed Forces chief of staff and defense secretary.

Ridon noted that while the Aquino administration invested heavily on modernizing the military arsenal, anomalies have hounded the procurement of equipment.

“The Armed Forces is still reeling from the P1.2-billion defective chopper deal. And when it comes to financial accountability, the military is not exactly a shining example,” he said.

He referred to the recent scandal involving the purchase of 21 refurbished Huey choppers reported to be more than 40-year-old.

Ridon feared that the same thing might also happen to the P25 billion that the Armed Forces is requesting for the modernization program next year.

The budget will be reportedly used to purchase two frigates, two twin-engine long range patrol aircraft, three aerial surveillance radars and pay for the amortization of 12 South Korean FA-50 lead-in fighters.

http://www.businessmirror.com.ph/dnd-says-military-modernization-on-track-as-dbm-allocates-p25-billion-for-2016/