Author Topic: AFP Modernization Trust Fund (AFPMTF)  (Read 1053 times)

adroth

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AFP Modernization Trust Fund (AFPMTF)
« on: January 05, 2018, 03:04:21 PM »
Administrator's note: See also the following threads:

Multi-Year Obligational Authority

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Just so that folks get a better feel of where the AFP Modernization . . . journey . . . was only a few years ago, here is a snapshot of how absurd things were before. This is an example of the red tape that DND personnel had to figure out in the Estrada - Arroyo years.

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http://www.afpmodernization.mil.ph/index.php?option=com_content&task=view&id=15&Itemid=30

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Fourth is to push for the transfer of the interest earned by the trust fund from the Bureau of Treasury to the AFPMATF. On 31 March 2004, the Bureau of Treasury informed the DND and AFP that a net interest accrual amounting to P1.31 billion was recorded from June 2000 to December 2003. The P5.4 billion BCDA remittance for the trust fund earned interest which was reckoned upon issuance of the Special Allotment Release Order (SARO) issued by the Department of Budget and Management (DBM) on 30 May 2000.

However, the Bureau of Treasury could not transfer the said interest income to the AFPMATF because it has no basis and per comment from Department of Finance (DOF) and DBM on the issue. To this effect, a Permanent Committee will review DOF-DBMCOA Joint Circular Number 4-98 which stipulates the rules and regulations on the proper handling/administration of the trust fund to conform to RA 7898. The DND/AFP is also contesting the reckoning date for the computation of interest earned, from the issuance of SARO to the actual remittance in March 1995. If this will materialize, computations of initial interest earned will more than double.

« Last Edit: January 05, 2018, 06:28:01 PM by adroth »

adroth

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Re: AFP Modernization Trust Fund (AFPMTF)
« Reply #1 on: January 05, 2018, 06:28:12 PM »
Where we stand TODAY

The Revised AFP Modernization Law defines that AFP Modernization Trust Fund as follows:

From: http://www.officialgazette.gov.ph/2012/12/11/republic-act-no-10349/

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SEC. 6. Section 11 of the same Act is hereby amended to read as follows:

“SEC. 11. The Revised AFP Modernization Act Trust Fund. – There is hereby created a trust fund, to be known as the Revised AFP Modernization Act Trust Fund. Said trust fund, which shall be used exclusively for the AFP modernization program, including all necessary expenses to implement the procurement of equipment such as expenses for pre-selection and post-qualification stages, but not to include salaries and allowances, shall be funded out of the following:

“(a) Appropriations for the Revised AFP Modernization Program;

“(b) The proceeds from the sale of military reservations, as may be authorized by Congress, pursuant to the provisions of existing laws and regulations governing sales of government properties, including such immovable and other facilities as may be found therein, not otherwise covered by the Bases Conversion and Development Authority, as provided for in Republic Act No. 7227, as amended;

“(c) The proceeds from the lease or joint development of military reservations, as may be authorized by the President, pursuant to the provisions of existing laws and regulations governing lease or joint development of government properties, including such immovables and other facilities as may be found therein, not specifically enumerated under Republic Act No. 7227, as amended;

“(d) Shares of the AFP from the proceeds of the sale of military camps provided for under Republic Act No. 7227, as amended, and at least fifty percent (50%) of the proceeds, net of direct expenses authorized to be deducted from such proceeds from the lease and/or joint venture agreements and such other dispositions pertaining to the same camps in accordance with applicable and/or existing orders, rules, regulations and issuances.

“The DND or the AFP may assign to the Bases Conversion and Development Authority or designate it as disposition entity for the sale, lease or joint development of military reservations or portions thereof or facilities and immovables located therein not otherwise covered under Republic Act No. 7227, as amended, subject to the parameters set by the DND or the AFP and applicable laws, rules, regulations and other related issuances;

“(e) The proceeds derived from public-private partnerships entered into by the DND or the AFP, as may be authorized by the President, pursuant to the provisions of existing laws and regulations;

“(f) Proceeds from the sale of the products of the Government Arsenal and/or, in case of joint venture, all incomes earned from the equity share of the Government Arsenal from the joint venture;

“(g) The proceeds from the disposal of excess and/or uneconomically repairable equipment and other movable assets of the AFP and the Government Arsenal;

“(h) Funds from budgetary surplus, if any, as may be authorized by Congress subject to the provisions of Section 8 of this Act;

“(i) Donations coming from local and foreign sources, specifically earmarked to be used for the Revised AFP Modernization Program; and

“(j) All interest income of the trust fund.

“Funds from the foregoing sources, regardless of income source, shall be directly deposited to a special account in the general fund created specifically for the Revised AFP Modernization importation of the same by the APP shall likewise be exempt from the value-added tax and customs duties.

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From: https://www.facebook.com/adrothph/posts/873292596185328



adroth

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Re: AFP Modernization Trust Fund (AFPMTF)
« Reply #2 on: January 06, 2018, 11:46:54 PM »
Past example of finds find their way to the AFPMTF

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Bases Conversion Authority to contribute P1.7B to AFP modernization fund
Published September 27, 2012 5:29pm

http://www.gmanetwork.com/news/news/nation/275887/bases-conversion-authority-to-contribute-p1-7b-to-afp-modernization-fund/story/

The Bases Conversion and Development Authority is set to remit within the next few months P1.7 billion to the Armed Forces of the Philippines Modernization Trust Fund. The fund finances the military’s efforts to acquire and upgrade its equipment.
 
In a briefing at Fort Bonifacio, BCDA president Arnel Paciano Casanova on Thursday said the amount will be in addition to the P325 million the agency had remitted to the trust fund earlier this year.
 
“Last year, we were able to remit to the AFP Modernization [Trust] Fund about P2.1 billion and this year – we are even at the third quarter – we are expecting a remittance of about P2.025 billion,” Casanova said.
 
BCDA has generated a total of P55.767 billion from the disposition of the military camps from May 1993 up to August 2012. Of the amount, 39 percent or P21.788 billion went to the military.

< Edited >

Junior

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Re: AFP Modernization Trust Fund (AFPMTF)
« Reply #3 on: January 07, 2018, 09:12:59 AM »
Past example of finds find their way to the AFPMTF

Quote
Bases Conversion Authority to contribute P1.7B to AFP modernization fund
Published September 27, 2012 5:29pm

http://www.gmanetwork.com/news/news/nation/275887/bases-conversion-authority-to-contribute-p1-7b-to-afp-modernization-fund/story/

The Bases Conversion and Development Authority is set to remit within the next few months P1.7 billion to the Armed Forces of the Philippines Modernization Trust Fund. The fund finances the military’s efforts to acquire and upgrade its equipment.
 
In a briefing at Fort Bonifacio, BCDA president Arnel Paciano Casanova on Thursday said the amount will be in addition to the P325 million the agency had remitted to the trust fund earlier this year.
 
“Last year, we were able to remit to the AFP Modernization [Trust] Fund about P2.1 billion and this year – we are even at the third quarter – we are expecting a remittance of about P2.025 billion,” Casanova said.
 
BCDA has generated a total of P55.767 billion from the disposition of the military camps from May 1993 up to August 2012. Of the amount, 39 percent or P21.788 billion went to the military.

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Should the TRAIN share of the AFPMP com to fruition.  Technically it could lead to a modernization fund of around P40 billion (25+2-ave from BCDA +13-TRAIN projection)