PASIG CITY, (PIA) -- The Department of National Defense (DND) has ordered the closure of accounts of the Armed Forces of the Philippines (AFP) with at least four banking institutions after these were flagged by the Commission on Audit (COA).

“The DND has already issued its guidance to the AFP upon our receipt of advice from the Department of Finance and the findings by the COA,” Defense Secretary Delfin Lorenzana told the PIA-NCR in a statement.

"The DND-AFP has been processing the closure of these accounts in adherence to the COA guidelines. However, some accounts cannot be closed outright as these are the depository accounts for our current projects, most of which
are multi-year obligations," Secretary Lorenzana added.

"We have since informed both the DOF and the COA on the situation. Further, future DND-AFP projects will be henceforth placed in the remaining authorized accounts," he further said.

The COA earlier flagged as "unauthorized” the 20 accounts containing a total balance of P1.813 billion, and one of which was used by the military in transactions in its ongoing modernization program.

The include accounts with the Land Bank of the Philippines, the Philippine Veterans Bank, the Development Bank of the Philippines and the United Coconut Planters Bank.

It also named several offices under the AFP like the AFP Modernization Act Trust Fund- Central Office, AFP Education Benefit System Office and the AFP General Headquarters as maintaining these deposits. (DND/PIA-NCR)