The Armed Forces of the Philippines (AFP) on Thursday reiterated its earlier clarifications regarding the Commission on Audit (COA) observations contained in the 2024 Annual Audit Report.

“These observations have been acknowledged by the AFP, and the corresponding actions taken and corrective measures have already been submitted to COA and duly reflected on its website. The COA observations are intended to further strengthen accounting procedures, internal controls, and financial management systems,” the AFP said in a statement sent to the DAILY TRIBUNE.

“However, certain narratives circulating on social media have selectively cited portions of these observations and misrepresented them as findings of corruption—a claim not supported by COA’s conclusions,” the Armed Forces added.

The AFP said the bank accounts described as “unauthorized” were opened exclusively to support legitimate, welfare-oriented purposes for AFP personnel.

“These include accounts for the PCSO Endowment Fund, funds transferred from other government agencies intended to address the medical needs of soldiers, and PhilHealth-related accounts used solely for the settlement of doctors’ professional fees to ensure uninterrupted medical services. The issue cited by COA pertains to non-compliance with prescribed approval processes, not to misuse, diversion, or personal gain,” the AFP explained.

In compliance with COA directives, the AFP said it closed five of the six accounts cited, with the corresponding balances remitted to the Bureau of the Treasury where applicable.

The AFP underscored that selective and misleading narratives disregard the full context of the COA observations and the actions already taken by the institution, “which are clearly reflected in the 2024 audit documents submitted to COA.”

“The AFP remains steadfast in its zero-tolerance policy against corruption, its adherence to due process, and its continued cooperation with COA and other oversight bodies. Audit observations are treated as a constructive mechanism to further strengthen governance, financial discipline, and accountability—consistent with the AFP’s mandate to serve the Constitution and the Filipino people,” the AFP said.

Meanwhile, the AFP stressed that coordination with the Permanent Committee Board was undertaken to retain one account as an authorized repository for inter-agency funds supporting the projects and programs of national government agencies (NGAs) and government-owned and -controlled corporations (GOCCs).

On the matter of unliquidated cash advances, the AFP said the amount cited refers to funds released for legitimate official purposes, such as transportation, support to field and operational activities, medical and humanitarian assistance, and other time-sensitive, mission-essential expenditures—particularly in areas where regular banking and check-based disbursement mechanisms were impractical.

“These amounts were pending liquidation in the accounting records at the time of audit. These funds were not lost, stolen, or misappropriated,” the AFP said.

It added that the AFP has consistently issued demand letters and enforced accountability measures against responsible officers.

“As of 30 September 2025, P178.72 million out of P201.86 million has already been liquidated, representing an 82.36 percent liquidation rate, leaving an outstanding balance of P23.13 million. The AFP continues to pursue recovery and resolution of the remaining balances, including cases involving resigned, AWOL, or deceased accountable officers,” the statement said.

“In instances where the obligation is already beyond the prescriptive period or recovery is no longer legally or practically feasible, the AFP is formally requesting COA for the appropriate write-off, strictly in accordance with existing rules and regulations,” it added.