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March 24, 2011

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Funds lost in military corruption scandal

A Philippine defense official said yesterday that an ongoing investigation has shown that "staggering" amounts of military funds have been lost to corruption and safeguards would be reinforced to prevent such massive losses.

Corruption, long entrenched in Philippine society, is an especially explosive issue in the inadequately equipped and underfunded military and has sparked several rebellions by disgruntled troops in the past 25 years.

In the latest corruption scandal, former military budget officer Lieutenant Colonel George Rabusa testified before the Senate in January that three former military chiefs of staff pocketed millions of US dollars in funds intended for combat, intelligence, troop salaries and a military hospital.

Philippine funds for joint military exercises with US troops and UN reimbursements for expenses incurred by Filipino peacekeeping troops abroad were also allegedly cut to fill a contingency kitty, from which the generals stole massive amounts of money, according to Rabusa.

The three retired generals denied Rabusa's allegations, which were made under oath before the Senate. One of the three, general turned politician Angelo Reyes later committed suicide.

Department of National Defense spokesman Eduardo Batac said that initial findings by an investigating committee showed massive corruption has happened in the past. "Evidently, there were irregularities that were committed," Batac told a news conference. "Even to us at the department and the Armed Forces of the Philippines, the amounts involved are staggering."

Rabusa has submitted sworn statements to the justice department to bolster possible plunder and graft charges against several generals, officers and conniving government auditors.




 

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