What is the AFP scam senate hearings all about?

Many have been wondering what the Armed Forces of the Philippines Fund Scam all about. The Congress had hearings on them, specifically on the plea bargaining deal between the Ombudsman and former AFP comptroller General Carlos Garcia and the Senate also had their own hearings which centered on General Ligot. What is the issue?

The issue is conversion. This will be threshed out later as we go on. In government, all funds are designated for a specific use and purpose. They are proposed by the different departments and then submitted to congress for approval. The consolidated budget of the government offices represent the budget for a specific year. Each Department of government, say the AFP, goes to congress to defend their budget in front of the appropriations committee where congressmen either approve the submitted budget, reduce it or sometimes increase it with some congressional insertions (projects which the congressmen proposed themselves with a specific budget).

Once a budget is approved, this is released to the AFP by the Department of Budget Management. The releases of the funds are based on a schedule and based on the purpose that it was intended for like personnel salaries, maintenance and operating expenses (for gasoline, electricity, transportation, repair etc.), capital outlay (for buying equipment or properties), intelligence funds (apart from the AFP, other Departments have these too, Projects and activities and other inputs which are called line items of the budget. If something is not in the budget, the Department cannot use the funds earmarked for specific entries for another item. To make it simple, everybody is given a wish list and are allowed to put an amount on them like apple 10 pesos, 10 pcs = 100 pesos or pencil 5 pesos x 20 pcs. = 100 pesos. When congress says ok to this, one cannot buy 11 apples or 21 pencils because the extra pencil and apple are not in the budget. Buying only 5 apples and using the remainder to buy additional pencils is also not allowed unless sufficiently justified to the DBM and an approval is given to re-align the approved budget for purposes of expediency. Now if you buy 3 oranges and 2 ballpens which are not in the budget and you used the funds for the apples and pencils to buy these, that is a form of conversion. In essence you used the funds slated for a specific item, did not buy that item as you declared in congress and used the funds for other purposes. In the case of the AFP, they used the funds that were meant for salaries, deposited them in long term accounts and used the interest as allowances of the generals. To a greater extent, funds that were intended for the modernization of the AFP to buy modern jets, faster ships and better tanks, were converted for the trips of the generals and those of whom who are the operators like Colonel George Rabusa and the whole of the J6 staff.

As indicated by newer witnesses who are part of the cabal of Rabusa, they freely admitted that this practice has been ongoing for many years and that each of those involved get a cut including the resident auditors of the Commission on Audit to a lesser degree.

This does not happen in the AFP alone. It happens in many other government offices with the exception that in the AFP, it was grossly greedy and unrepentantly initiated by so many officers and civilian personnel.

Looking into what Garcia, Ligot, Rabusa and the Euro Generals have amassed, we can say that a big part of the modernization budget, intelligence funds and UN funds were rampantly misused and converted for personal use and enrichment.

Congressmen and Senators are guilty of this conversion practice as well but these are not revealed in the press. Only the COA provides oversight for how the citizens funds are used by Congressmen and Senators as the executive branch has no oversight on the legislative branch of government. How then is conversion done in congress or the senate. It is in fact easier because of the PDAF or Pork Barrels which each congressman and Senator is entitled to every year for their own pet projects and advocacies. There are times when projects are ghost projects and the funds destined for them are used for personal means such as the purchase of cars and trips abroad or even shopping. Funds are also converted by the congressmen or senators through their own suppliers in their respective provinces. A project is declared by a congressman, funds are paid to the supplier and the supplier does not undertake the project or does not follow the standards and returns part of the funds to the congressman or the senator.

Conversion to put it simply, is corruption. This practice is replete in the Philippine government, no matter what the department or high or low the office is. That is why our ADOBO or National Progress always seem to lack an ingredient and very few of the citizens can partake of it. As one PR practitioner put it, palaging matabang (always bland) no matter who cooks it! Why? One ingredient is lacking and its funds were converted for Chicharon! Right Mr. President?

Ligot absent from Senate fund scam hearing

“Gusto ko yung magkokonvert sa ISAFP tao ko!” This is the admission of George Rabusa former head of the comptroller family (J-6) when Jinggoy was asking the questions during the current hearings on AFP funds conversion hearings. Colonel Cirillo Donato, the former assistant of George Rabusa was grilled on the dispensation of funds within the budget division of the AFP which Rabusa controlled. All told, he was handling the funds that were being dispensed by Rabusa for the operations of the office. A civilian budget officer, Perla Valerio, testified that indeed funds were released and she admittedly was also receiving an allowance over and above their regular salaries. Donato admitted that he was receiving 20,000 a month while Valerio was receiving 10,000. Rabusa however said they were receiving 100,000 and 20,000 respectively. Donato also admitted that he received a car from Rabusa as a personal gift, but he did not know that it came from the funds of the AFP.

Senator Enrile for his part was fuming as General and Mrs. Ligot were absent from todays hearing due to health problems. Senate doctors were sent to the home of General Ligot to verify the claim.

Senator Drillon for his part was less arrogant and scathing on his questioning of Ligot’s brother in law, Eduardo Yambao, who answered most of the questions posed to him. Both seemed to be in a cooperative mood during today’s hearings. Yambao’s request to be removed from the watch list was granted.

General Diomedio Villanueva denied signing any rental agreement for the safehouse which according to him George Rabusa had facilitated. He admitted having land in Tagaytay, but this was bought in 1998 long before he assumed the position of AFP Chief.

Senator Enrile posed the question on why there was a need for fund conversion when the AFP had sufficient budgets. His disappointment was apparent when he said to Rabusa: What have you done? What have you done in managing the AFP. This is mismanagement as during my time there these things were unheard and not done alluding to the massive conversions.

It seems that Rabusa is padding most of his testimonies most specially those involving money as his testimonies do not really jibe with those of the other resource persons. Donato, a junior officer then, would be a victim of Rabusa for corrupting him as well as the whole of the J-staff. Whenever Rabusa is asked about questions on responsibility, he would either pass it on to his higher official or his lower employee. In essence he is shirking away from the fault and even responsibility for the fund conversion that has marred that AFP. Should we believe Rabusa on all his claims? We must not take all his testimonies as god truth as he is one of the ringleaders in the scam, if at all, the greatest corruptor in the whole mess. Yes we can blame the generals for looking the other way. After all they were recipients of Rabusa’s offers and tidings. Yes we can blame the junior officers because they tolerated the system that Rabusa set in place together with Generals Garcia and Ligot.