Navy welcomes COA findings on delayed projects

MANILA, Philippines — The Philippine Navy has assured Filipinos of zero tolerance for graft and corruption in the military service as it welcomed the Commission on Audit (COA) findings on the delayed implementation of its projects and programs.

“It has always been the thrust of the Command leadership to have zero tolerance to graft and corruption and have a transparent procurement system with checks and balances that will not delay the entire process,” said Capt. Jonathan Zata, Navy spokesman. 

Instead of complaining, he said the Navy acknowledged COA’s findings on how its modernization projects have been suffering delays insofar as implementation is concerned and stressed that it “intends a worthwhile, advantageous and strategic use of public funds as it performs its mandates to protect and secure the country and its people.”

Zata said the audit report actually reflects on the performance of the Philippine International Trading Corp. (PITC) as state auditors identify the limitations of PITC in handling voluminous projects. 

This, he explained, is why COA assisted the Philippine Navy in evaluating affected projects and gave recommendations to fast-track its implementation.

He added that the P2.2-billion fund balance at PITC is the accumulated fund transfers from 2015, 2016 and 2017 representing the budgets intended to support the conduct of the Navy’s various projects.  

Upon assumption of the Flag Officer in Command (FOIC) in December 2017, Vice Admiral Robert Empedrad took cognizance of such huge fund balance and gave directive to facilitate the implementation of affected projects.

Zata said the Philippine Navy organized Task Force Obligation, an ad-hoc committee, which was primarily tasked to liaise and engage PITC. Also, the task force oversees the strict execution of procurement systems and processes to hasten the completion of affected projects.

He added that Empedrad gave specific instruction not to transfer any funds to PITC during his term, which is why the bids and awards committee 2 (BAC 2) was activated to fully address the directive. 

“The Command’s Programs, Activities and Projects (PAPs) for 2019 were catered by the PN BAC 1 and the newly activated PN BAC to ensure its immediate implementation,” Zata noted.

“For 2018 and 2019 Philippine Navy budgets, not a single centavo was transferred to PITC. As of this date, there is a significant decrease of the remaining fund balance for Philippine Navy unimplemented projects at PITC in the amount of P639 million. This remaining fund balance must be utilized before the end of the year,” he said.