Corruption mess has Australia worried over aid to AFP

The corruption scandal casting a shadow on at least three retired Philippine military chiefs also has Australian Ambassador Rod Smith admitting that his government is “very concerned" and asking that the Philippine government ensure that the allegations are investigated and acted on. Smith said that despite Philippine reassurances that some past problems arising from allegedly massive corruption have already been addressed and eliminated, Australia still expects the “proper accountability" of funds it gave to the Armed Forces of the Philippines (AFP). The ambassador said that his government is looking to the Philippine government “to ensure the allegations are properly investigated and appropriate action taken." In a Senate inquiry, retired Lt. Col. George Rabusa, former AFP budget officer, testified on the widespread corruption in the military, admitting that he and other AFP finance officers had collected “unused’’ or “saved’’ funds for “send-off money" (pabaon) to certain AFP chiefs of staff upon their retirement, particularly Generals Angelo Reyes, Diomedio Villanueva and Roy Cimatu. (See: Witness: Ex-AFP chief Angelo Reyes got P50-M 'pabaon') Reyes denied Rabusa’s allegations before committing suicide Tuesday morning. Former state auditor Heidi Mendoza also testified that payments and reimbursement for the participation of Filipino troops in United Nations sponsored peacekeeping missions abroad were first deposited in a personal bank account before going to the official military bank account. (See: Ex-COA auditor bares suspicious bank account in Garcia’s province) Mendoza was unable to identify the owner of that personal bank account, but hinted that it could belong to former AFP comptroller Carlos Garcia, who is charged with graft and corruption for amassing more than P300 million in allegedly ill-gotten wealth while in military service. Despite these allegations, Smith said Australia will still work with the AFP in improving its capability especially in the fight against terrorism. Smith emphasized his government has a “very, very good relationship with the Philippine armed forces," underscoring Australia’s “long standing and strong partnership in defense cooperation" with the AFP. Although Australia said there were no specific problems with regard to the funds it provided to the AFP, Smith stressed that “transparency and accountability are always very important principles when you’re accounting for public funds." The Philippines is Australia’s second largest counter-terrorism and defense partner after the United States. Total Australian aid to the Philippines has reached about AU$100 million by the end of 2008, focusing on humanitarian assistance and building Philippine capacity in defense, law enforcement, immigration, port security and transport security. Meanwhile, a senior Department of Foreign Affairs (DFA) official said the Philippine mission to the United Nations has already received documents from the UN’s peacekeeping financing division on reimbursements made by the world body to the Philippines. “We are waiting for the Philippine mission to the UN to transmit these records to the House committee on national defense and security," the official said. As for the $5-million dollar check released to an unidentified Philippine military official in 2001, the DFA said UN records “did not show a single check issued in that amount." The DFA official said all reimbursements made to the Philippines for the said year were deposited to Philippine bank accounts. – MRT/JV, GMA News