Corruption in large-scale public infrastructure projects, particularly in flood control, could significantly hinder the Armed Forces of the Philippines' (AFP) modernization efforts, AFP Chief of Staff Gen. Romeo Brawner Jr. warned over the weekend.

Brawner, speaking at a forum hosted by the Foreign Correspondents Association of the Philippines (FOCAP) on Friday, expressed concern over how inefficiencies and alleged misuse of government funds in civilian sectors are tightening the country’s already limited fiscal space, leaving less for critical defense initiatives.

“We recognize the fiscal limit of our country. For 2025, we only have P40 billion for our modernization program, and this is not enough,” Brawner said.

“Our multi-year contracts already amount to P36 billion to P38 billion. It doesn’t allow us to buy new items.”

The AFP modernization program, aimed at upgrading military capabilities to address external threats and domestic challenges, has long struggled with inconsistent funding.

Brawner lamented recent controversies such as alleged overpricing in flood control projects as examples of how corruption siphons off funds that could otherwise support national security.

He further stressed that every peso lost to corruption takes away resources that could have been used to equip soldiers or enhance their capabilities.

Seeking alternative funding

To mitigate the budgetary shortfall, Brawner said the AFP and the Department of National Defense (DND) are pursuing alternative financing options outside of the annual General Appropriations Act (GAA).

He explained that Defense Secretary Gilberto Teodoro Jr. engaged with Finance Secretary Ralph Recto, local banks, and international financial institutions to explore options for borrowing or securing extended financing to support the military’s modernization program.

“What the Secretary of National Defense did is to talk to the Secretary of Finance, local banks, and international financial institutions to allow us to borrow money or have extended financing for our modernization program,” he said.

The military is also eyeing the development of idle military lands to generate revenue.

“We’re looking at other possibilities, like the use of military lands that are idle and make them productive so that we will be able to raise enough funds to continue the modernization program,” Brawner added.

Reviving local defense industries

Meanwhile, Brawner underscored the importance of self-sufficiency in defense production.

The AFP is reviving its Self-Reliant Defense Posture (SRDP) program to reduce reliance on foreign imports and build up local manufacturing of defense equipment.

“We used to manufacture our own rifles, ammunition, radios, and even some of our transport or mobility equipment,” he said.

“We used to manufacture our own rifles, ammunition, radios, and even some of our transport or mobility equipment.Those industries were lost along the way, but hopefully we’re trying to revive them again,” he added.

However, he said legal barriers remain a challenge.

Current restrictions on foreign financing for defense and security projects limit the military’s options, Brawner said, prompting efforts to work with Congress on new legislation.

“We’re working with Congress to come up with laws that would allow us to pursue foreign financing,” he said, noting that military modernization is still a priority.

Despite the setbacks, Brawner emphasized that the AFP remains committed to its long-term modernization goals.

“We’re helping the government raise funds and strengthen our defense industries. Our goal is to build a capable, modern, and self-reliant armed forces,” he said.

The AFP’s modernization program, first established in 1995 and later extended under Republic Act 10349 in 2012, seeks to transform the country’s armed forces into a more agile, well-equipped, and technologically advanced military, an ambition now threatened by corruption and fiscal constraints beyond the defense sector