The Armed Forces of the Philippines is stepping up enforcement and internal reforms after the Commission on Audit flagged millions of pesos in unliquidated cash advances and unauthorized bank accounts, signaling what the military described as a renewed push for stricter financial discipline.
COA records showed the AFP had P201.86 million in unliquidated cash advances as of the end of 2024, along with six unauthorized bank accounts holding a combined P72.86 million.
In a statement, the AFP said it considers the audit findings part of a “constructive process” aimed at strengthening governance and accountability across its units.
The military said it has activated administrative and legal measures, including the withholding of salaries of accountable officers until the funds are fully liquidated.
The AFP added that recovery efforts extend beyond active personnel, noting that former and retired officials are also being traced to ensure the return of public funds in compliance with COA directives.
Corrective actions are also underway to address the unauthorized bank accounts cited in the audit. The AFP said affected units have begun closing or regularizing the accounts to align with government financial rules.
These include the closure of bank accounts linked to the Philippine Charity Sweepstakes Office Endowment Fund by the AFP Medical Center, the shutdown of two accounts maintained by the Presidential Security Command, and corrective steps taken by the Eastern Mindanao Command.
The AFP said it is reinforcing internal controls and financial systems to prevent similar issues from recurring, while ensuring that services and benefits for its personnel remain uninterrupted.