QuestionsQuestions (Republic Act No. 7898)
RA 7898 is titled the “AFP Modernization Act.”
They include: (1) developing a self-reliant and credible strategic armed force under a “Citizens Armed Force” concept, reconfiguring the AFP structure, and professionalizing the AFP; (2) reforms in recruitment, training, employment, and management of AFP personnel; (3) developing/validating/modifying AFP doctrines; (4) acquisition and upgrading of technology and equipment; and (5) relocation, improvement, and construction of bases and facilities.
They include: enhancing capability to uphold sovereignty and territorial integrity; assisting in preservation of national patrimony including resources in territory and EEZ; responding to disasters and calamities and ecological damage; enforcing international covenants against piracy, white slavery, smuggling, drug trafficking, hijacking, and transport of toxic/ecologically harmful substances; assisting the PNP in internal security and law enforcement; fulfilling international commitments; and supporting national development.
Force restructuring and organizational development; capability, material, and technology development; bases/support system development; human resource development; and doctrines development.
Acquisitions must follow modernization needs; be synchronized with phase-out of obsolete/uneconomical equipment; no major system may be purchased unless used by the armed forces of the country of origin or used by at least two countries; only offers from suppliers who are the manufacturers are entertained; and supply contracts must clearly provide after-sales services and availability of spare parts.
The Department of National Defense and the general headquarters, AFP.
It shall be implemented over fifteen (15) years, though amortization payments for outstanding multi-year contract obligations may extend beyond that period.
Within 90 days from effectivity, the President (recommended by the Secretaries of National Defense and Budget and Management) must submit the modernization program to Congress for consideration and approval in a joint resolution of the House and Senate.
It must indicate: the size and shape of the AFP in personnel/equipment/facilities per phase; modernization projects including major weapon and non-weapon acquisitions, infrastructure construction/improvement, and objectives/components they belong to; and priorities, schedules, and estimated average cost per project.
For the first five (5) years, the ceiling is Fifty billion pesos (P50,000,000,000.00), after which it may be increased commensurate with the increase in the GNP.
They are treated as a distinct and separate budget item from the regular DND/AFP appropriation and administered by the Secretary of National Defense.
The Secretary of National Defense may, subject to approval by the President and provisions of existing laws/regulations (including COA rules), enter into multi-year contracts, lease, and lease-purchase agreements. For multi-year contracts, Congress appropriates funds for the ensuing fiscal year upon certification by the President.
As far as practicable, preference is given to Filipino contractors/suppliers or foreign suppliers capable of locating substantial production in the Philippines. Contracts should incorporate special foreign exchange reduction schemes (e.g., counter trade, in-country manufacture, co-production) and include transfer of principal technology and training of AFP personnel to operate and maintain the equipment/technology.
It is used exclusively for the AFP modernization program (not to include salaries and allowances). It is funded by: appropriations for the program; proceeds from authorized sale/lease/joint development of military reservations (as authorized by Congress) not covered by RA 7227; shares of the AFP from proceeds of sale of military camps under RA 7227; proceeds from the sale of government arsenal products; proceeds from disposal of excess/uneconomically repairable AFP and arsenal assets; budgetary surplus funds if authorized by Congress (subject to Section 8); and all interest income.
They must be treated as two sequential but separate steps, each requiring separate decision of the Secretary of National Defense—equipment acquisition decision begins at appropriate service command and is submitted to the AFP Weapons Systems Board, while contract negotiation begins at general headquarters AFP level.
For unforeseen national security emergencies, the President may modify the program by substitution or revision of a component project upon recommendation of the Secretary of National Defense. The President must report the action to Congress within thirty (30) days.
The separability clause (Section 17) states that if any provision is held unconstitutional/invalid, other provisions remain in force. The repealing clause (Section 18) repeals or amends laws, executive orders, rules, and regulations inconsistent or contrary to the Act.