Question & AnswerQ&A (Republic Act No. 7898)
The short title of Republic Act No. 7898 is the "AFP Modernization Act."
The main policy is to modernize the Armed Forces of the Philippines (AFP) to a level where it can effectively and fully perform its constitutional mandate to uphold the sovereignty and preserve the patrimony of the Republic of the Philippines.
The principal thrusts include developing a self-reliant and credible strategic armed force, reconfiguring the AFP structure, professionalizing the AFP, undertaking reforms in recruitment and training, developing or modifying AFP doctrines, acquiring/upgrading technology and equipment, and relocating or improving AFP bases and facilities.
Objectives include developing capabilities to uphold sovereignty, assist in preserving national patrimony, respond to natural and man-made disasters, enforce policies against crimes like piracy and drug trafficking, assist the Philippine National Police, fulfill international commitments, and support national development.
Components include force restructuring and organizational development, capability/material/technology development, bases and support system development, human resource development, and doctrines development.
New equipment must be synchronized with the phase-out of obsolete equipment, not be purchased if not used by the armed forces in the country of origin or two other countries, offers must come from manufacturers, and contracts must provide after-sales services and availability of spare parts.
The program is to be implemented over fifteen (15) years, with payments for amortization of multi-year contracts possibly extending beyond this period.
Within 90 days from the effectivity of the Act, the President must submit the AFP modernization program to Congress for approval by joint resolution containing details like size, modernization projects, priorities, schedules, and estimated costs.
Sources include appropriations for the program, proceeds from the sale, lease or development of military reservations, shares from military camp sales, proceeds from government arsenal products, disposal of excess AFP assets, authorized budget surpluses, and all interest income from the trust fund.
The AFP shall give preference to Filipino contractors or foreign suppliers who locate substantial production in the Philippines, incorporate foreign exchange reduction schemes, promote local employment, enhance technology transfer, and ensure training of AFP personnel to operate new equipment.
The Secretary, subject to Presidential approval and existing laws, may enter into multi-year contracts, leases, and lease-purchase agreements, with Congress required to appropriate funds yearly upon certification by the President.
Modernization of the government arsenal is part of the AFP modernization, aimed at developing production capabilities for weapons, ammunition, and munitions for AFP/PNP use and for sale/export of excess products, possibly using joint ventures or co-production agreements.
The Secretary shall submit an annual report on the AFP Modernization Act Trust Fund status, and the Chief of Staff shall submit an annual report on progress of the modernization program to the President and Congress.
The President, upon recommendation of the Secretary of National Defense, may modify the program via substitution or revision of projects, but must report such changes to Congress within 30 days.
They are repealed or amended accordingly as provided in the Act's repealing clause.