The Commission on Audit (COA) has uncovered significant financial irregularities within several units of the Armed Forces of the Philippines (AFP), including unauthorized bank accounts and millions in unliquidated cash advances. The findings were detailed in the state audit body's 2024 annual report, released on January 19, 2026.
Audit Findings: Unauthorized Accounts and Aging Advances
According to the COA report, auditors identified six unauthorized bank accounts with a combined book balance of approximately P72.8 million. These accounts were not properly authorized for operation, raising red flags about financial control.
In a more substantial discovery, the audit flagged a staggering P201.86 million in cash advances that have not been liquidated. A concerning 82 percent of this amount, or P166.25 million, is already past its due date for accounting. Some of these outstanding advances are decades old, with the audit noting instances dating back as far as 43 years.
Which AFP Units Were Involved?
The audit pinpointed specific military units maintaining the unauthorized accounts. Three accounts were under the AFP Medical Center. The Presidential Security Command held one account, and the Eastern Mindanao Command maintained another. All these accounts were kept with the Land Bank of the Philippines.
AFP Response and Corrective Actions
The Armed Forces of the Philippines stated that it acknowledges the COA findings and views them as part of a process to enhance governance and financial discipline. The AFP emphasized that corrective measures are already being implemented through its AFP Accounting Center and AFP Finance Center.
To recover the funds, the military has initiated several actions. These include:
- Withholding the salaries of accountable officers.
- Issuing formal demand letters.
- Pursuing necessary administrative and legal steps.
- Making efforts to locate officers who are no longer in active service to ensure compliance.
Regarding the unauthorized accounts, the AFP reported steps to regularize and close them. The AFP Medical Center has closed an account linked to the Philippine Charity Sweepstakes Office Endowment Fund. The Presidential Security Command has shut down its two accounts, and the Eastern Mindanao Command has taken corrective action to align with government financial rules.
Commitment to Reform and Future Steps
The AFP assured the public and oversight bodies that it is strengthening its financial systems and internal controls to prevent similar findings in future audits. It reiterated its commitment to transparency and accountability. The military also stressed that these corrective efforts will not disrupt its primary mission of supporting the welfare of its personnel and maintaining cooperation with oversight institutions like COA.
