COA to PAF: Demand Petron complete projects

MANILA, Philippines — The Commission on Audit (COA) told the Philippine Air Force (PAF) to demand that its partner, Petron Corp., complete projects pending as far back as 2015.

In its 2022 annual audit report on the PAF, the COA noted that of the 53 approved projects funded out of the PAF’s Repair, Maintenance and Construction (RMC) Fund from 2015 to 2018, only 62.26 percent or 33 projects were completed by Petron as of Dec. 31, 2022, while 20 projects are still in various stages of implementation.

The RMC Fund, managed by Petron, pertains to rebates or patronage discounts that the PAF is entitled to from the firm, in accordance with a memorandum of agreement and contract that the Department of National Defense entered into with Petron.

Under the agreement, Petron shall be the exclusive supplier of the petroleum, oil and lubricant (POL) requirements of all PAF units nationwide.

A special provision in the contract, however, states that the supplier shall, at its own expense, “repair, maintain, rehabilitate and construct POL facilities and procure additional POL equipment,” equivalent to a certain percentage of the contract, using the RMC Fund.

COA records showed that among the pending projects are the construction of new POL dump facilities, extension of a POL dam, asphalt overlay for a gassing-up area for aircraft, maintenance requirements, and the procurement of hose and gas trucks as well as services for the transportation of POL through sea vessels.

The audit body recommended that the PAF direct its supply officer and its Air Logistics Command (ALC) to require Petron to effect the immediate “delivery of all undelivered equipment” and complete projects funded by RMC Funds from 2015 to 2018.

The COA said the PAF must also issue a supplemental order indicating specific and reasonable timelines for each project and furnish a copy to Petron for its compliance.

In a comment incorporated in the audit report, the PAF said its ALC held a series of meetings with Petron to fasttrack the implementation of RMC projects.

Non-titling of lands

In the same audit report, the COA also called out the PAF over its failure to register under its name the titles of several plots of land.

The COA noted that based on the report submitted by the PAF’s Civil Engineering Services Office (CESO), 85 parcels of land occupied by the PAF’s Tactical Operations Wing West (TOWWEST), with an aggregate value of P128.371 million, remain under the names of various private individuals instead of PAF.

The COA said this exposes the lots to “possible conflicts of title and occupation of third parties, among others.”

The COA noted that the parcels remain untitled under PAF, even if they were recorded as owned lands in the TOWWEST book of accounts.

The COA added that there were also nine more parcels of land valued at P7.998 million that were recorded in the TOWWEST book but had no files or records under CESO.

The PAF should secure certificates of title for land occupied by TOWWEST, reconcile records and make a full disclosure of land assets in the PAF’s financial statements, COA said.