DEFENSE Secretary Gilberto Teodoro on Monday said the government is studying how it could recover its P2-billion downpayment on a cancelled order for Russian military helicopters.
At the same time, Teodoro said the government was working on a reorganization for the Department of National Defense (DND) to make it more responsive to “evolving threats.”
Teodoro said the Department of National Defense (DND), in collaboration with the Office of the Solicitor General and other agencies, is looking at the best options in getting back the funds within the year.
The Philippines had agreed to pay P12.7 billion for the 16 Russian Mi-17 helicopters, as it sought to modernize its military hardware.
But the United States and its allies intervened, imposing sanctions on Moscow in the wake of the Russian assault on Ukraine in 2022. The sanctions sought to cut off Russia from the global financial system and choking off funds available to Moscow to finance it conquest of Ukraine.
Philippine ambassador to Washington Jose Romualdez had said the termination of contract on the Russian choppers was due to “the Ukrainian war.”
Romualdez said Manila was cautious on getting on the wrong side of a US law passed in 2017 that frowns upon any country doing business with Russia’s intelligence or defense sectors.
Teodoro disclosed that the DND was crafting a draft reorganization bill that seeks to increase its personnel and equipment.
“Kailangan natin ng mas maraming tao at mas maraming kagamitan upang ma-manage ang limang ahensya sa ilalim namin nang tama. Dahil sa ngayon napakababa ng ratio ng mga empleyado namin at mga co-workers namin ng departamento kung ihahambing namin sa laki ng halaga ng responsibilidad namin, ng equipment, at sa dami ng stakeholders,” Teodoro said.
He likewise bared that he was eyeing a separate retirement system for the Armed Forces of the Philippines (AFP).
“There are lines of convergence but it is a distinct discipline and organization from the rest of the law enforcement agencies. And their mission roles are different and we shall be coming out with a suggestion to Congress on a bill for that,” Teodoro told ANC.
President Ferdinand Marcos Jr. has been pushing for “self-regenerating” pension plans for both the AFP and the Philippine National Police.
According to the Presidential Communications Office, Marcos wanted the AFP and the PNP to have a self-sustaining pension plan and to avoid a scenario where the funds will be depleted.