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This page features the full text of
Republic Act No. 7898
AFP
Modernization Act
AN
ACT PROVIDING FOR THE MODERNIZATION OF THE ARMED FORCES OF THE
PHILIPPINES
AND FOR OTHER PURPOSES.
REPUBLIC
ACT NO. 7898
AN
ACT PROVIDING FOR THE MODERNIZATION OF THE ARMED FORCES OF THE
PHILIPPINES
AND FOR OTHER PURPOSES.
Section
1. Short Title. — This Act shall
be known as the "AFP Modernization Act."
Sec.
2. Declaration of Policy. — It
is hereby declared the policy of the State 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. Toward this end, the
principal thrusts of the modernization program under this Act shall
be:
(a) The
development of a self-reliant and credible strategic armed force along
the concept of a "Citizens Armed Force"; the reconfiguration of
the Armed Forces of the Philippines structure; and the
professionalization
of the AFP;(b) The
undertaking of reforms in the recruitment, training, employment and
management
of AFP personnel;
(c) The
development, validation or modification of AFP doctrines;chan
robles virtual law library
(d) The
acquisition and upgrading of appropriate technology and equipment; and
(e) The
relocation, improvement, and construction of bases and other facilities.
Sec.
3. Objectives of the AFP Modernization
Program. — The AFP modernization program shall be implemented in
accordance
with the following objectives:chanroblesvirtualawlibrary
(a) To
develop its capability to uphold the sovereignty and territorial
integrity
of the Republic and to secure the national territory from all forms of
intrusion and encroachment;
chanrobles virtuallaw libraryred(b) To
develop its capability to assist civilian agencies in the preservation
of the national patrimony, including the country's living and nonliving
marine, submarine, mineral, forest and other natural resources located
within its territory and its exclusive economic zone (EEZ);
(c) To
enhance its capability to fulfill its mandate to protect the Filipino
people
not only from armed threats but from the ill effects of
life-threatening
and destructive consequences of natural and man-made disasters and
calamities,
including typhoons, earthquakes, volcanic eruptions, major accidents in
far-flung or inaccessible terrain or at sea and from all forms of
ecological
damage;
(d) To
improve its capability to assist other agencies in the enforcement of
domestic
and foreign policies as well as international covenants against piracy,
white slavery, smuggling, drug trafficking, hijacking of aircraft and
seacraft
and the transport of toxic and other ecologically-harmful substances
taking
place in or through Philippine territory;
(e) To
enhance its capability to assist the Philippine National Police in law
enforcement and internal security operations;
(f) To
enhance its capability to fulfill the country's international
commitments;
and
(g) To
develop its capability to support national development.
Sec.
4. Components of the AFP Modernization
Program. — The AFP modernization program shall consist of the following
components:chanroblesvirtualawlibrary
(a) Force
restructuring and organizational development. — the AFP modernization
program
shall develop the AFP into a compact, efficient, responsive and modern
for with the capability to engage in conventional and/or unconventional
warfare, disaster relief and rescue operations, and contribute to
economic
development and other nontraditional military roles.This
component of the modernization program shall likewise provide for the
identification,
organization, training and development of reserve force and affiliated
reserve units in the AFP, especially in the Navy and Air Force.
(b) Capability,
material, and technology development. — The AFP modernization program
entails
the development and employment of certain capabilities that can address
the assessed threats: Provided, That the acquisition of air
force,
navy and army equipment and material of such types and quantities shall
be made in accordance with the need to develop AFP capabilities
pursuant
to its modernization objectives: Provided, further, That the
acquisition
of new equipment and weapons systems, shall be synchronized with the
phase-out
of uneconomical and obsolete major equipment and weapons systems in the
AFP inventory: Provided, even further, That no major equipment
and
weapons system shall be purchased of the same are not being used by the
armed forces in the country of origin or used by the armed forces of at
least two countries: Provided, furthermore, That only offers
from
suppliers who are themselves the manufacturers shall be entertained: Provided,
finally, That no supply contract shall be entered into unless such
contract provides for, it is clear and unambiguous terms, an
after-sales
services and the availability of spare parts.
(c) Bases/support
system development. — The AFP modernization program shall entail the
development
of permanent bases for land, air and naval forces to conform with
national
defense strategies and the government's socioeconomic thrusts; provide
a systematic relocation of AFP units to enhance their capability in the
performance of their mission; provide adequate support systems and
housing
facilities to AFP units and personnel; provide training grounds for
maneuver
and territorial forces as well as the reserve components; and develop
bases
and camps along standard criteria for space allocations, zoning and
efficient
correlation of land areas and structure.
(d) Human
resource development. — The human resource development component of the
AFP modernization program shall have the following objectives:
(1) To
strengthen the patriotic spirit and nationalist consciousness of the
military
and respect for people's rights in the performance of their duty;chanrobles virtuallaw libraryred(2) To
develop and transform the AFP into a primarily external
security-oriented
force;
(3) To
develop a compact, effective, efficient and responsive citizen-based
force;
(4) To
implement programs that will enable the AFP to perform its role in
environment/resource
protection and multinational peace-keeping operations;
(5) To
convert the AFP into a service/people-oriented and professionally
united
force; and
(6) To
improve the quality of life of soldiers and their families and reorient
values of all personnel in the AFP.
(e) Doctrines
and development. — The transition of the AFP from an internal
security-oriented
force to an external security-oriented force to an external
security-oriented
force requires the review, evaluation and validation of its present set
of doctrines for the purpose of formalizing such doctrines. Towards
this
end, the Department of National Defense and the general headquarters,
AFP
shall be responsible for the generation, evaluation, consolidation and
formalization of doctrines; the conduct of periodic review and
validation
of doctrines through field application, testing and exercises; and the
dissemination of approved doctrines at all levels of command.chanrobles virtuallaw libraryredThe
Secretary of National Defense shall formulate guidelines to implement
this
section in accordance with the objectives of the modernization program
enumerated in the preceding section.chan
robles virtual law library
Sec.
5. Development of AFP Capabilities.
— The AFP modernization program shall be geared towards the development
of the following defense capabilities:chanroblesvirtualawlibrary
(a) Development
of naval defense capability — Given the archipelagic nature of the
Philippines,
the Philippine Navy (PN) shall develop its capabilities for naval
defense,
amphibious warfare, sealift and transport, and surface warfare; naval
gunfire
support, detection and maritime surveillance, search and rescue,
disaster
response as well as capabilities for anti-air, anti-submarine and mine
warfare. The enhanced navy defense capabilities shall enable the AFP to:chanroblesvirtualawlibrary(1) Develop
its capabilities for naval defense;chanrobles virtuallaw libraryred(2) Conduct
amphibious operations for both military and civilian relief operations;
(3) Defend
the Philippine territorial seas, all its internal waters, as well as
its
200-mile exclusive economic zone (EEZ), from all forms of illegal
intrusion
or passage;
(4) Protect
all submarine-based lines of domestic and international communication;
(5) Identify
all vessels and monitor all kinds of surface and submarine passage
through
Philippine territorial waters;
(6) Protect
and preserve, through the Philippine Coast Guard (PCG), all coastal,
near-coastal
and riparian living and nonliving marine resources;
(7) Provide
transportation of personnel and material in times of natural disaster
and
rescue operations; and
(8) Provide,
and if practicable, manufacture, through Filipino skills and
technology,
its own requirements for seacraft and infrastructure supply and
maintenance.
(b) Development
of air defense capability. — The Philippine Air Force (PAF), being the
country's first line of external defense shall develop its air defense
capability by acquiring multi-role aircraft, air munitions, avionics,
point
and area defense missile system, maritime patrol and reconnaissance,
and
early warning and control system, as well as capabilities for strategic
and battlefield airlift and limited ground attack in support of surface
forces. The enhanced air defense capability shall enable the AFP to:chanroblesvirtualawlibrary(1) detect,
identify, intercept and engage, if necessary, any aircraft illegally
intruding
into or passing through Philippine airspace, up to areas near or around
Philippine territorial limits;chanrobles virtuallaw libraryred(2) Provide
air support to Philippine ground and naval armed forces;
(3) Provide
airlift, search and rescue, rapid deployment and related support in
combat
as well as disaster and other civilian relief operations; and
(4) Provide,
and if practicable, manufacture, through Filipino skills and
technology,
its own requirements for aircraft and infrastructure supply and
maintenance.
(c) Development
of ground defense capability — The fragmented nature of Philippine land
territory requires the Philippine Army (PA) to develop its capabilities
for ground defense and internal security as well as its capability for
assistance to national development, search and rescue operations,
relief
and rehabilitation, natural resources and environmental protection. The
enhanced army defense capabilities shall enable the AFP to:chanroblesvirtualawlibrary(1) Locate
and maintain adequate ground forces in strategic sites in the major
islands
of the country capable of carrying out independent or joint defense
operations;chanrobles virtuallaw libraryred(2) Transport
personnel and equipment rapidly through all kinds of terrain in all
kinds
of weather conditions;
(3) Conduct
disaster relief and civilian engineering and construction operations;
(4) Monitor
compliance with the enforcement, as the proper government agency may
require,
all laws relating to the preservation and protection of forest,
wildlife
and mineral resources; and
(5) Provide,
and if practicable, manufacture, through Filipino skills and
technology,
its own requirements for personnel and infrastructure supply and
maintenance.
(d) Development
of general headquarters capability — The modernization of the AFP
further
requires the development of the general headquarters capabilities for
command,
control, communications, and information systems network.chan
robles virtual law library
Sec.
6. Period of Implementation.
— The modernization program under this Act shall be implemented over a
period of fifteen (15) years: Provided, however, That payments for
amortization
of outstanding multi-year contract obligations incurred under this Act
may extend beyond this period.
chanrobles virtuallaw libraryred
Sec.
7. Submission of the AFP Modernization
Program. — (a) Within ninety (90) 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 AFP modernization program
as
provided for in this Act to Congress for its consideration and approval
in a joint resolution of the House of Representatives and the Senate.
The
program shall indicate or show inter alia:chanroblesvirtualawlibrary
(1) The
size and shape of the AFP in terms of personnel, equipment, and
facilities
during the various phases of the modernization program;chanrobles virtuallaw libraryred(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) and component(s) under
Sections
3 and 4, respectively, of this Act to which such intended acquisition,
construction or improvements belongs; and
(3) The
priorities, schedules as well as estimated average cost of each
modernization
project or upgrading to be undertaken.
(b) In
the event Congress approves the AFP modernization program, the joint
resolution
shall be the basis for subsequent executive and legislative actions to
implement the AFP modernization program from year to year until its
complete
and full realization.
Sec.
8. Appropriations for the AFP
Modernization Program. — The annual appropriations for the AFP
modernization
program shall include the amounts necessary to support the funding
requirements
for all modernization projects approved by Congress under the preceding
section.
chanrobles virtuallaw libraryred
The
funds to be appropriated by Congress under this Act shall be treated as
a distinct and separate budget item from the regular appropriation for
the Department of National Defense (DND) and the AFP and shall be
administered
by the Secretary of National Defense.
The
proposed program shall be based on a ceiling, for the first five (5)
years,
of fifty billion pesos (P50,000,000,000.00): Provided, That hereafter,
this amount may be increased commensurate to the increase in the Gross
National Product (GNP).
Sec.
9. Multi-year Contracts and Other
Contractual Arrangements. — (a) The Secretary of National Defense,
pursuant
to the AFP modernization program, projects and appropriations approved
by Congress, may, subject to the approval by the President, provisions
of existing laws and regulations including those of the Commission on
Audit
and under such terms and conditions most favorable to the government,
enter
into multi-year contracts, lease and lease-purchase agreements.
(b) For
multi-year contracts, Congress shall, upon certification by the
President,
make the corresponding appropriation for the ensuing fiscal year:
Provided,
That Congress shall appropriate only such funds as may be necessary to
pay any unpaid amount where such funds mentioned in Section 11 of this
Act are not sufficient or available to meet such payment in full or in
part.
(c) The
Secretary of National Defense shall submit to Congress, through the
chairmen
of the Senate Committees on National Defense and Security and Finance
and
the chairmen of the House Committees on National Defense and
Appropriations,
copies of these multi-year contracts and other agreements/arrangements
to enable Congress to appropriate funds.
Sec.
10. Self-Reliant Defense Posture
Program. — (a) In implementing the modernization program, the AFP
shall,
as far as practicable, give preference to Filipino contractors and
suppliers
or to foreign contractors or suppliers willing and able to locate a
substantial
portion of, if not the entire, production process of the term(s)
involved,
within the Philippines.
chanrobles virtuallaw libraryred
(b) In
order to reduce foreign exchange outflow, generate local employment
opportunities
and enhance technology transfer to the Philippines, the Secretary of
National
Defense shall, as far as feasible, incorporate in each
contract/agreement
special foreign exchange reduction schemes such as countertrade, in
country
manufacture, co-production, or other innovative arrangements or
combinations
thereof.
(c) The
AFP likewise ensure that in negotiating all applicable contracts or
agreements,
provisions are incorporated respecting the transfer to the AFP of the
principal
technology involved as well as the training of AFP personnel to operate
and maintain such equipment or technology.
Sec.
11. AFP Modernization Act Trust
Fund. — There is hereby created a trust fund, to be known as the AFP
Modernization
Act Trust Fund. Said trust fund, which shall be used exclusively for
the
AFP modernization program, but not to include salaries and allowances,
shall be funded out of the following:
(a) Appropriations
for the AFP modernization program;chanrobles virtuallaw libraryred(b) The
proceeds from the sale, lease or joint development of military
reservations,
as may be authorized by Congress, including such immovable and other
facilities
as may be found therein, not covered by the Bases Conversion
Development
Authority, as provided for in Republic Act No. 7227;
(c) Shares
of the AFP from the proceeds of the sale of military camps provided for
under Republic Act No. 7227;
(d) Proceeds
from the sale of the products of the government arsenal;chan
robles virtual law library
(e) The
proceeds from the disposal of excess and/or uneconomically repairable
equipment
and other movable assets of the AFP and the government arsenal;
(f) Funds
from budgetary surplus, if any, as may be authorized by Congress
subject
to the provisions of Section 8 of this Act; and
(g) All
interest income of the trust fund.
The
trust fund shall be administered by the Secretary of National Defense
in
accordance with existing government auditing rules and regulations.
chanrobles virtuallaw libraryred
Sec.
12. Modernization of the Government
Arsenal. — The modernization of the government arsenal, for the
development
of production capabilities to enhance self-sufficiency in defense
requirements,
shall be part of the AFP modernization program. The government arsenal
shall be effectively utilized in the production of basic weapons,
ammunition
and other munitions for the use of the AFP and the Philippine National
Police (PNP), and for the sale and export of products in excess of
AFP/PNP
requirements. The government arsenal may use such production facilities
as it may own or be provided with under this Act or as it may arrange,
under joint venture, co-production or similar agreements with local and
foreign entities.chan
robles virtual law library
Sec.
13. Austerity and Use of Savings.
— Effective upon the approval of this Act, the Secretary of National
Defense
shall submit to Congress, within the first quarter of the succeeding
year,
a report on:
(a) The
amount of all unused or undisbursed funds, other than unused
appropriations
for salaries and benefits of the AFP personnel, remaining from all
previous
DND and AFP appropriations; andchanrobles virtuallaw libraryred(b) The
amount of savings from austerity measures, which are hereafter to be
pursued
by all services and units of the AFP, generated in the previous fiscal
year.
The
savings generated under this section are hereby authorized to be used
to
augment funds for the AFP modernization program.chanrobles virtual law library
chanrobles virtuallaw libraryred
Sec.
14. AFP Procurement System. —
The DND-AFP shall strengthen its systems and procedures for equipment
acquisition,
taking into account new requirements under the AFP modernization
program.
Contract negotiations and equipment acquisition
shall be treated as two sequential but separate steps, each requiring
the
separate decision of the Secretary of national Defense. The decision
making
process for equipment acquisition shall start at the appropriate
service
command and submitted to the AFP Weapons systems Board, while contract
negotiation shall start at general headquarters AFP level. In its
system
and procedures for equipment acquisition, the provisions of
Presidential
Decree No. 1594, as amended, and other applicable laws shall apply.
Sec.
15. Guidance for the President.
— To meet unforeseen national security emergencies, the president, upon
the recommendation of the Secretary of National Defense, may modify the
program through substitution or revision of a component project
therein:
Provided, however, That he shall report such action to Congress within
thirty (30) days.
Sec.
16. Annual Reports. — Not later
than the end of the first quarter of the succeeding year:
(a) The
Secretary of national Defense shall submit to the President and
Congress
an annual report on the status of the AFP Modernization Act Trust Fund,
as provided for in Section 11 of this Act;chanrobles virtuallaw libraryred(b) The
Chief of Staff, AFP shall submit to the President and Congress, through
the Secretary of national Defense, an annual report containing the
progress
of the implementation of the modernization program under this Act to
include
the AFP modernization activities implemented prior to the approval of
this
Act.
Sec.
17. Separability Clause. — If
any provision of this Act shall be held unconstitutional or invalid,
the
other provisions not otherwise affected shall remain in full force and
effect.
chanrobles virtuallaw libraryred
Sec.
18. Repealing Clause. — All laws,
executive orders, rules and regulations inconsistent with or contrary
to
this Act, are hereby deemed accordingly repealed or amended.
Sec.
19. Effectivity Clause. — This
Act shall take effect after fifteen (15) days from its publication in
at
least two (2) newspapers of national circulation.
Approved:
February
23, 1995
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