Sandie Offer of the te tha TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 26 FEB 11 P5:07 First Regular Session SENATE RECEIVED BY: 1845 S. No. _ Introduced by Senator Loren Legarda AN ACT FURTHER AMENDING REPUBLIC ACT NO. 7898, AS AMENDED BY REPUBLIC ACT NO. 10349, TO STRENGTHEN THE IMPLEMENTATION OF THE REVISED AFP MODERNIZATION PROGRAM, AND FOR OTHER PURPOSES EXPLANATORY NOTE Republic Act No. 7898, or the AFP Modernization Act, was enacted in 1995 with the aim of modernizing the country's armed forces. The passage of this law was intended to augment proceeds from the conversion of military camps, including former US bases and other facilities, as provided under another law - the RA 7227 or the Bases Conversion and Development Act, which was enacted in March 1992. While these legislative measures laid the foundation for the ongoing modernization efforts, the requirements of the day, and the new security challenges that have emerged, require a more strategic approach in the development of the AFP's capabilities. In pursuit of this, it is necessary that Republic Act No. 7898, as amended by Republic Act No. 10349, is revisited to address the structural challenges that have affected the country's ability to upgrade military capabilities and build a robust armed forces. The proposed measure will address: (1) the need for a continuous AFP modernization program that addresses and adapts to evolving security challenges; (2) a more strategic approach that will allow the armed forces to acquire and utilize new technology and upgrade existing AFP inventory of equipment and weapon systems, without being deterred by fixed project implementation provision of the existing AFP Modernization Law; (3) ensuring
that sustained funding measures shall be in accordance with the provisions of the 1987 Constitution and the requirements of law; and (4) strengthening oversight, transparency, and accountability through enhanced monitoring and reporting systems to ensure proper implementation and deter misuse of funds. Through these reforms, the Bill endeavors to overcome the obstacles that previously hindered the full realization of the AFP Modernization Program, thereby strengthening the country's defense capabilities and ensuring the readiness of the Armed Forces to meet present and future challenges. In view of the foregoing, the passage of this measure is earnestly sought. LOREN LEGARDA
Office of the so 1 T 26 FEB 11 P5:07 TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session RECEIVED BY: SENATE 1845 S. No. _ Introduced by Senator Loren Legarda AN ACT FURTHER AMENDING REPUBLIC ACT NO. 7898, AS AMENDED BY REPUBLIC ACT NO. 10349, TO STRENGTHEN THE IMPLEMENTATION OF THE REVISED AFP MODERNIZATION PROGRAM, AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
Section 1. Sec. 6 of Republic Act No. 7898, as amended by Section 2 of
Republic Act No. 10349, is hereby amended to read as follows: "SEC. 6. Period of PROGRAM Implementation. - The Revised AFP Modernization Program under this Act shall be implemented over a period of fifteen (15) years effective upon the date of approval of this Act: Provided, however, That payments for amortization of outstanding multi year contract obligations incurred under the Revised AFP Modernization Act may extend beyond this period. CONTINUOUSLY UPDATED AND IMPLEMENTED ON THE BASIS OF STRATEGIC, CAPABILITY-BASED MULTI-YEAR PLANNING AND EXECUTION PROCESS IN LINE WITH THE COUNTRY'S POLICY OF ENSURING CONSTANT READINESS OF ITS ARMED FORCES. THE AFP SHALL BE ADEQUATELY CAPACITATED TO EFFECTIVELY RESPOND TO EVOLVING
DEFENSE CHALLENGES. AS SUCH, THE FIFTEEN-YEAR IMPLEMENTATION PERIOD FOR THE REVISED AFP MODERNIZATION ACT AS PROVIDED IN REPUBLIC ACT NO. 7898, AND AS AMENDED BY REPUBLIC ACT NO. 10349, IS HEREBY REPEALED ACCORDINGLY.
Sec. 2. SEC. 7 of Republic Act No. 7898, as amended by Sec. 3 of
7 Republic Act No. 10349, is hereby amended to read as follows: "SEC. 7. Submission of the Revised AFP Modernization Program. - (a) Within NINETY (90) sixty (60) days from the effectivity of this Act, the President, upon the recommendation of the Secretaries of National Defense and Budget and Management, shall submit the revised AFP Modernization Program to Congress, as provided for in this Act. The Program shall indicate or show inter alia: "(1) The size and shape of the AFP in terms of personnel, equipment, and facilities during the various phases of the modernization program;" "(2) The modernization projects under it, including the major weapon and non-weapon equipment and technology acquisitions sought by the respective services and units of the AFP, any major infrastructure construction or improvement to be made and the particular objective(s), HUMAN RESOURCE DEVELOPMENT, AND OTHER and components) under Sections 3 and 4, respectively, of this Act to which such intended acquisition, construction or improvements belongs; and" "(3) THE CHALLENGES AND THREATS EACH PROJECT SEEKS TO ADDRESS;" "3 (4) The priorities, schedules as well as estimated average cost of each modernization project or upgrading to be undertaken: Provided, That in the implementation of the AFP REVISED Modernization Program, the acquisition of
equipment or upgrading to be undertaken shall be devoted towards the development of the AFP shifting capability INTO AN AGILE AND FLEXIBLE ORGANIZATION TO ADDRESS A WIDE SPECTRUM OF EVOLVING SECURITY CHALLENGES, INCLUDING to meet INTERNAL AND EXTERNAL THREATS." "(b) THE PROGRAM SHALL BE CONTINUOUSLY IMPLEMENTED, AS WELL AS REVIEWED AND UPDATED, AS THE CIRCUMSTANCES WOULD WARRANT. ANY AMENDMENT IN THE PROGRAM AND ITS PLANS SHALL BE SUBMITTED TO CONGRESS WITHIN THIRTY (30) DAYS UPON APPROVAL THEREOF BY THE PRESIDENT." "The Revised AFP Modernization Program, AND ANY AMENDMENTS THERETO, AS APPROVED BY THE PRESIDENT, AND as submitted to Congress, shall be the basis for subsequent executive and legislative actions to implement the Revised AFP Modernization Program from year to year until its complete and full realization," SUBJECT TO RULES AND REGULATIONS THAT WILL BE ISSUED IN ACCORDANCE WITH THIS ACT."
Sec. 3. Insert a section after Section 8 of the same act which shall become
the new Section 9, and shall read as follows: "SEC. 9. AUTHORITY TO ENTER INTO LOAN CONTRACTS AND AGREEMENTS. -- THE CONTRACTING OF AND GUARANTEEING OF LOANS BY THE PRESIDENT AND COMMANDER-IN-CHIEF, IN BEHALF OF THE REPUBLIC OF THE PHILIPPINES, IN SUPPORT OF THE REVISED AFP MODERNIZATION PROGRAM, SHALL BE IN ACCORDANCE WITH SECTION 20, ARTICLE VII OF THE 1987 CONSTITUTION; THUS, PRIOR CONCURRENCE OF THE MONETARY BOARD OF THE BANKO SENTRAL NG PILIPINAS SHALL BE REQUIRED IN SUCH INSTANCES, AND THE SAME
SHALL BE SUBJECT TO SUCH REQUIREMENTS, CONDITIONS, AND LIMITATIONS AS MAY BE PROVIDED BY LAW, AND PERTINENT RULES AND REGULATIONS OF THE GOVERNMENT: PROVIDED FURTHER, THAT SUCH LOAN, CREDIT OR INDEBTEDNESS, AS MAY BE NECESSARY, SHALL ONLY BE PURSUED WITH FOREIGN GOVERNMENTS, FOREIGN FINANCIAL INSTITUTIONS, OR OTHER INTERNATIONAL ORGANIZATIONS WITH WHOM, OR BELONGING TO COUNTRIES WITH WHICH, THE PHILIPPINES HAS DIPLOMATIC RELATIONS; PROVIDED FURTHER, THAT ALL LOAN, CREDIT OR INDEBTEDNESS, UNDER THE PRECEDING SECTION, SHALL BE INCURRED ONLY FOR PARTICULAR PROJECTS UNDER THE REVISED AFP MODERNIZATION PROGRAM AFTER THE DETAILED PLANS OF SUCH PROJECTS SHALL HAVE BEEN PREPARED BY THE DND, AND THE CONCURRENCE BY THE MONETARY BOARD OF THE BANGKO SENTRAL NG PILIPINAS AND APPROVAL OF SUCH PLANS BY THE PRESIDENT, SHALL HAVE BEEN ISSUED. AUTHORIZATIONS, IF ANY, FOR THE NEGOTIATION AND SIGNING OF CONTRACTS OR AGREEMENTS COVERING BORROWINGS, GUARANTEES, AND FOREIGN GRANTS UNDER THIS ACT, SHALL BE IN WRITING, THROUGH FULL POWERS, SPECIAL AUTHORITY, LETTER OR MEMORANDUM SIGNED BY THE PRESIDENT. THE DND, IN NEGOTIATING SUCH LOANS AND AGREEMENTS, IS AUTHORIZED TO PURSUE INNOVATIVE PAYMENT TERMS SUCH AS DEFERRED OR EXTENDED PAYMENT TERMS, AMONG OTHERS, TO ACHIEVE THE BEST TERMS AND ARRANGEMENTS: PROVIDED THAT THESE
TERMS SHALL NOT UNDERMINE THE COUNTRY'S SOVEREIGNTY AND ECONOMIC INDEPENDENCE AND ARE PURSUED WITH PUBLIC INTEREST IN MIND. THE DND AND THE ARMED FORCES OF THE PHILIPPINES SHALL ENSURE THAT FOREIGN LOANS TO SUPPORT THE REVISED AFP MODERNIZATION PROGRAM ARE USED PRUDENTLY, TRANSPARENTLY, WHILE PROTECTING PUBLIC WELFARE. REPORTS TO CONGRESS, AS REQUIRED UNDER THIS ACT, SHALL INCLUDE DETAILS ON THESE LOANS AND AGREEMENTS, ENTERED INTO BY THE PRESIDENT OR THE DND.
Sec. 4. SEC. 17 of the same act is amended to read as follows:
"SEC. 17 18. Exemption From Value-Added Tax and Customs Duties. - The sale of weapons, equipment and ammunitions to the AFP, INCLUDING SERVICES, AS THE CASE MAY BE, which are directly and exclusively used for its projects, undertakings, activities and programs under the Revised AFP Modernization Act, shall be exempt from the value- added tax: Provided, That the importation of the same by the AFP shall likewise be exempt from the value-added tax and customs duties."
Sec. 5. SEC. 19 of the same act is hereby amended to read as follows:
"SEC. 19 20. Sunset Review. - As the need arises or within five (5) years after THE EFFECTIVITY OF THIS ACT, its effectivity, the Congressional Oversight Committee shall conduct a sunset review of this Act. The term 'sunset review' THIS REVIEW shall mean INCLUDE a systematic evaluation of the accomplishments and impact of this Act, as well as the performance and organizational structure of its implementing agencies, for purposes of determining remedial legislation."
Sec. 6. all sections of the same act are hereby amended and renumbered
accordingly.
Sec. 7. Implementing Rules and Regulations. - within thirty (30) days
from the approval of this act, the DND, in consultation with the AFP and other concerned departments, shall prepare and adopt the necessary implementing rules and regulations in order to carry out the provisions of this act.
Sec. 8. Separability Clause. - If any provision or part of this Act is declared
unconstitutional or invalid, the remaining parts or provisions not affected shall remain in full force and effect.
Sec. 9. Repealing Clause. - All laws, executive orders, rules and
regulations or parts thereof which are inconsistent with the provisions of this Act are hereby amended or repealed accordingly.
Sec. 10. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation. Approved,