Committee on Finance (Sub Committee A) (October 19, 2026)

[25:34] on the proposed fiscal year 2027 national expenditure program of the department of national [25:39] defense the armed forces of the philippines and its attached agency hereby call to order [25:44] i'd like to acknowledge the presence of center panfila laxon who's with us today [25:49] at this juncture let me direct the committee secretary to acknowledge our resource persons [25:53] present for today thank you mr chair good afternoon good afternoon senator laxon [25:57] and senator erwin dulfo for the briefing on the proposed fy 2027 budget of the department of [26:03] national defense or dnd and attached agencies namely the government arsenal the national defense [26:09] college of the philippines the office of civil defense the philippine veterans affairs office [26:14] the veterans memorial medical center the philippine army the philippine air force the philippine navy [26:20] and the general headquarters afp and afp wide service support units including the revised afp [26:27] modernization program would like to acknowledge our resource persons from dnd we have secretary [26:32] gilberto chodoro jr together with undersecretary pablo lorenzo undersecretary ignacio madriaga [26:39] undersecretary rene diaz undersecretary gavin edhawan undersecretary emmanuel anthony ramos [26:45] assistant secretary romeo de la cruz assistant secretary rene raul romel honasan assistant secretary [26:53] catherine linan assistant secretary augusto gaite assistant secretary dick jolola and assistant secretary [27:00] arsenio and for the government arsenal we have director florante amano from ndcp we have captain [27:07] george ibarra from ocd we have undersecretary harold cabreros from pvao we have undersecretary reynaldo [27:16] from vmmc we have director peter paul rio ben galvez from the philippine army we have lieutenant general [27:23] donald guniran from the philippine air force we have lieutenant general arthur cordura from the [27:28] philippine navy we have rear admiral edwin nera and brigadier general bob apostol the commandant of the [27:37] philippine marine corps from the afp wss us we have lieutenant general romel roldan and brigadier [27:44] general kim eric alexander agatep of the ghq we have also invited representatives from bbm and coa from bbm we [27:53] have oic director mary rose aguilar mr rainier adrian barida miss mary daniel moholy miss maricel [28:00] bison and miss chloe john gerlan from coa we have miss rosanna alconcel mr mark joseph francisco mr [28:07] john john espiritu miss christine anne marie nicolas miss marie mirasol flores miss jesseline adoremos [28:15] miss marisa rose yao mr christopher james pureza miss mariezel rogero mr angel carillo jr miss roby jane [28:24] bernabe mr carlo apostol miss francis fay lim miss vanessa coleado mr jared guiang mr roland ramsi [28:32] comia miss melissa ferrer balina and mr miel alan gabriel thank you mr chair thank you our committee [28:39] secretary our the chair also would like to acknowledge the presence of center erwin tulfo [28:45] the chair would like first to give this opening statement then after which our colleagues [28:51] if there is any and then they will have the presentation of the department of national [28:54] defense and the armed forces of the philippines that's on the colleagues secretary of national [29:00] defense gilbert chudoro and other officials and heads of agencies of the department of national [29:04] defense and its attached agencies earlier this morning we had the opportunity to visit the [29:09] fp southern luzon commanded quarters in camp guillermo general nakar in lucena city [29:15] malaga po sa ati na bago natin talakayin ang mga numero uno at dato sa binabalangkas nating pambansang [29:21] budget na makita at marinig mismo ang kalagayan ng ating mga sundalo ang kalimang karanasan [29:27] saan sa field ay dapat makarating sa ating madeliberasyon at ang ating madesisyon dito [29:32] sa senado ay dapat tumugon sa tunay nilang pangangailangan as we deliberate on the budget of the [29:38] department of national defense the armed forces of the philippines and other agencies in our national [29:44] defense sector allow me to state for the record bilang senador na republika ito rin ko po pahagi [29:51] ng aking sinupaang tungkulin ang ating sa ating konstitusyon sa bayan at sa lahat ng [29:55] pilipino ang tiyakinang patuloy na suporta ng inyong senado sa kagawaran ng tanggulong [30:01] pambansa at sa sandatang lakas ng pilipinas upang patuloy na maipagtanggol ang ating [30:07] soberanya pangalagaan ng ating teritoryo at itaguyod ang ating dignidad bilang isang malayang [30:14] bansa noong nakarang taon katawang natin ang mga kasamahan sa senado at sa [30:21] pangunguno ni then finance chair at ngayon senate president sherwin gachalian sinuporta [30:27] natin ang paglalaan ng karagdagang pondo para sa afp modernization sa ilalim ng inyong [30:33] kasalukoyin budget para sa 2026 umabot sa 90 billion ang pinagsamang alokasyon para sa [30:38] revised afp modernization program 40 billion sa program appropriations at 50 billion sa [30:44] program appropriations nice po nating malaman kung gaano nakalaki sa pondong ito ang [30:50] aktual na nailabas na obliga at nagastos at kung ano ang katumbas nitong progreso sa ating [30:56] mga proyekto na pang modernization alin sa mga inaasang kagamitan at sistema ang [31:02] nahihatid na at nagagamit ng ating masundalo ano mga hadlang sa pagpapatupad at alin ang [31:09] mga pangangailangan ang dapat nating unahin sa pagbabalangkas ng budget para sa fiscal year [31:15] 2027 i share the senate committee on finance and as i have done so for many years i reaffirm our [31:22] commitment to sustaining the afp modernization with our fiscal constraints kapag hinahamak ang [31:29] ating bandila at kinigipit ang ating mga kababayan sa sarili nating mga karagatan dapat [31:36] malinaw ang ating prinsipyo at matatag ang ating tugon sa gitna ng maraming mga [31:41] hamon at kinakaharap ng ating bansa kailangan buo ang ating loob at nagkakaisang ating [31:48] pagtindig na mapagtatanggol ng pambansang interes ito ang diwa ng pangakong ating [31:55] binibigas sa tuwing inaawit ang lupang hinirang nasa harap ng sino mang [31:59] manlulupig kailanman ay hindi tayo pasisihin i remain steadfast in my belief that defending [32:05] our nation's honor and sovereignty to the attainment of a credible defense posture must [32:10] transcend partisan loyalties political considerations and personal interest the [32:16] defense of our nation must always rise above politics and remain firmly anchored in our shared [32:23] commitment to national security sovereignty and the filipino people maraming salamat po at this [32:29] juncture also the chair would like to acknowledge the presence of our senate president [32:32] senator wingat salyan so i'd like to ask my colleagues if they have any opening statement [32:38] or uh let me start with our senate president [32:40] magandang hapon mr chairman magandang hapon secretary teodoro sa lahat po ng ating kasamaan sa [32:48] armed forces of the philippines talaga pong mabilis pong nagbabago ang geopolitical [32:55] situation dito sa ating region at sa buong mundo na rin nakikita ho natin yung ibat-ibang mga [33:01] conflict na nangyayari sa sa middle east sa eastern europe at sa isa iba pang parte [33:09] ng buong mundo at sa ganitong punto importante po na maging handa tayo at patuloy ho natin [33:16] minamodernize at pinapalakas po ang ating armed forces kasama na rin po dito yung pagdating po [33:22] sa cyber warfare marami rin po akong pabalitaan at napapanood po sa balita [33:29] na ang cyber warfare cyber warfare ay isa po sa mga bagay na nagiging realidad na sa mga ganito pong sitwasyon [33:40] alam ko komplikado po itong cyberspace pero ganun paman importante na nakaka [33:47] nakakabilit po tayo ng mga kagamitan na makakatulong po tayo sa pagpeprepera sa mga ganitong conflicts at warfare [34:02] at sa kabilang punto ang armed forces of the philippines ay hindi lang taga defend ng ating [34:13] bansa kung hindi rin mo responde rin to sa mga kalamidad na nangyayari po sa ating bansa [34:18] at isa rin po sa mga bagay na dapat ho natin tignan yung multi-role capability ng ating armed forces [34:27] lalo na pag tumatama sa ating malaking bagyo o merong mga malalaking kalamidad na nararanasan ho natin [34:35] so kami po ay sumusuporta sa pagbibigay ng dagdag kapasidad ng ating armed forces [34:44] at importante rin po na tuloy-tuloy yung support as sustainable yung pagsusuporta ho natin [34:49] hanggat umabot ho tayo sa kakayahan na gusto ho natin makita [34:53] so maraming salamat Mr. Chairman [34:54] Thank you our Senate President [34:57] maraming salamat din sa suporta mo nung isang taon sa ating armed forces [35:02] the biggest ever probably budget for the AAP modernization [35:06] our colleague Senator Banfield or Laxon [35:08] none from this representation [35:11] I'll just listen to the presentation [35:13] and seek clarification if I need to [35:16] Thank you [35:16] Thank you Senator Laxon, Senator Tulfo [35:18] Thank you Mr. Chair [35:20] Magandagaro po sa ating lahat [35:22] Today as we deliberate the proposed 2027 budget [35:26] of the Department of National Defense [35:28] let us be guided by our commitment to protect our sovereignty [35:34] uphold our territorial integrity [35:37] and ensure the safety and security of every Filipinos [35:41] but how can we do that [35:44] if the budget of the National Defense is cut down [35:48] found that was taken about 43.01% [35:52] Paano po natin mapoprotektahan ang ating soberania [35:57] pagtatanggol po ang ating teritoryo [36:01] at masiguro ang siguridad kapakanan ng bawat Pilipino [36:05] kung binawasan po ng budget [36:07] ang budget na ito hindi lamang tungkol sa numbers and allocations [36:11] that represents our investment and is stronger [36:14] more capable and more modern armed forces of the Philippines [36:18] ang bawat piso nga nililaan sa pambansang depensa [36:21] ay dapat magsilbi sa kapakanana sa ambayan ng Pilipino [36:24] Every allocation must translate into tangible improvements [36:29] in our country's defense posture [36:31] operational readiness [36:32] and ability to respond to both traditional emerging security challenges [36:38] Nabawasan nga po ang external threat [36:41] ang ating internal threat [36:44] Tumaas naman po ang external threat [36:47] meaning kalaban galing sa labas [36:49] How do we address that kung mas maliit po na budget? [36:52] We also recognize that National Defense goes beyond preparedness [36:57] It encompasses our commitment to our soldiers [37:00] and their families [37:01] our support for communities [37:02] affected by conflict and disasters [37:05] and our contribution to its peaceful, secure, and resilient Philippines [37:08] We look forward to a constructive discussion of D&D's 2027 proposed budget [37:14] to ensure that every peso strategically allocated [37:17] responsibly spent and aligned with our national defense priorities [37:22] Maraming salamat po, Ginoon Chairman [37:24] Thank you, Senator Tulfo [37:27] Before we ask the Department of National Defense and the AFP for the presentation [37:34] I seek the indulgence of our colleagues to allow the department [37:37] and the Dutch agency to conclude their presentation [37:39] before asking questions [37:41] Each center will be allowed later with about 10 minutes for questions [37:45] In keeping tradition, of course, we will give priority to the officials of the Senate [37:50] followed by the centers according to the order of the arrival [37:53] So at this point, let me disjuncture [37:56] I would like now to call to our Secretary of National Defense, Gilbert Tudoro Jr. [38:01] to deliver his opening statement and the presentation of the department [38:05] and its attached agencies thereafter [38:07] Thank you [38:07] Secretary Tudoro, you now have the floor [38:10] Thank you very much, Mr. Chairperson [38:12] and to our Senate president and our sponsor last year [38:16] to Senator Laxon, the vice chairman [38:19] and Senator Tulfo, vice chairman likewise [38:22] It is indeed an honor to present our budget request once again [38:28] to this honorable chamber [38:30] and might I just give a short preface [38:37] and then if with the indulgence of the senators [38:41] go straight to page 15 of the presentation [38:47] which is the highlights of the proposed budget per NEP [38:52] Firstly, the armed forces of the Philippines at the forefront [39:01] together with the Department of National Defense [39:04] in cooperation with other agencies [39:06] have been at the forefront of external defense operations [39:10] in order to deter further aggression in the West Philippine Sea [39:16] and other areas now not traditionally encompassed [39:20] Secondly, there still is robust presence [39:26] to preserve the gains of internal security [39:32] in areas which have been cleared of the CPP, NPA, NDF threat [39:38] Nonetheless, we estimate that robust presence [39:45] of the armed forces of the Philippines [39:47] considering that the coverage of the armed forces [39:51] of the Philippines not only for operational purposes [39:54] but also for administrative and logistical purposes [39:58] is not as robust within the 7,600 islands as we want [40:04] For this reason, the Philippine Army has been tasked [40:09] to scope its areas of operations and also to determine [40:15] for logistical and staging purposes and support purposes [40:20] and support purposes for our strategic basing [40:23] which we have proposed [40:27] is necessary to establish new presence [40:30] whether this be brigades or divisions [40:33] Secondly, these areas will serve as nodes for our critical infrastructure [40:39] which has to be, as we determined, stand-alone [40:43] as you mentioned earlier [40:44] You mentioned earlier, our cyber systems [40:49] We do have capabilities [40:51] However, these rely on the, shall we say [41:01] sterile nature of critical basic infrastructure [41:06] which we have had to remediate and deal with [41:12] as you know, in terms of IT [41:15] you start with IT and then you progress to cyber [41:19] because your IT foundation is the basis of your resilience [41:25] and stability and one compromise in any area [41:28] can lead to systemic compromises in others [41:31] This we had to continue to remediate [41:36] and as we construct our new infrastructure [41:40] we will incorporate the resilience necessary in these areas [41:47] For our Navy, the major thrust once again [41:53] is not only for the new platforms to complement [41:58] with the Coast Guard [42:00] our presence in the 360 degree area [42:03] but we have a big gap [42:05] which we are starting to fill [42:09] hopefully by the end of this year [42:13] in our dockyards and our berthing facilities [42:17] Our naval bases per design [42:22] except for a few, very few [42:28] are not deep nor big enough to support [42:32] the type of operations that we will need [42:36] Thirdly, our Philippine Air Force continues [42:39] It's the sustainment of the systems already ordered [42:48] and the upgrade of those systems [42:52] because we have to upgrade these systems [42:56] while we try to segue [43:02] or to not segue, to complement this [43:05] with platforms that we can afford in the meantime [43:11] which provide sufficient deterrence for us [43:19] The Philippine Marine Corps, we have a new commandant here [43:22] Major Brigadier General Apostol [43:25] who was tasked to scope the areas [43:31] which need marine operations [43:34] knowing very well that the Philippine Marine Corps [43:38] is a maneuvered corps [43:40] it is not a territorial corps [43:42] and with three marine brigades [43:46] and one support brigade [43:48] four infantry brigades [43:52] and one support brigade [43:54] for 7,600 islands [43:57] I think the math [43:59] just the math alone shows that it is too small [44:03] Secondly, the Air Force [44:05] or the Navy or them [44:07] must ensure their mobility [44:09] and must ensure their firepower [44:12] because a fixed marine unit [44:16] is not a marine unit [44:17] its essence is its deployability and mobility [44:24] so Brigadier General Apostol [44:28] once he is confirmed your honours [44:32] hopefully soon [44:34] will devote his time [44:38] to the growth plan of the Philippine Marine Corps [44:44] that includes equipment [44:48] We have talked about the internal security dimension [44:53] but a lot of operations right now have seen [44:56] the connection between territorial defense [45:00] and internal security [45:02] that is in the front of illegal [45:07] FIMI and other illegal activities [45:10] by undesirable state adversaries [45:15] that have been proliferating [45:17] as the Senate President knows [45:20] in this [45:22] in our space [45:24] which serve to weaken [45:26] economic resilience [45:30] connectivity [45:33] and basic infrastructure [45:35] and perhaps [45:36] other forms [45:39] of malign activity [45:43] which we continue [45:45] in coordination [45:47] with other [45:48] with the law enforcement agencies [45:52] to disrupt [45:53] and to [45:54] discover [45:55] I think [45:57] I think that is a major issue [45:59] right now [46:00] on internal security [46:01] of which [46:03] we devote [46:04] a lot of [46:05] cooperative time [46:07] with the lead agencies [46:09] namely [46:10] the PAO [46:11] the NBI [46:12] in [46:16] HADR [46:17] of course [46:18] it is a constant [46:19] threat [46:20] however [46:21] we have refined [46:22] our [46:23] deliverables [46:24] now [46:25] to a coordinated [46:26] response [46:27] as quick as possible [46:28] and [46:30] we concentrate [46:31] on that [46:32] in the OCD [46:33] so that [46:35] we do not [46:36] lose focus [46:37] on [46:38] what [46:39] people need [46:40] immediately [46:41] because [46:42] feeling that need [46:43] alone [46:44] for those [46:45] who may be displaced [46:46] is already [46:47] a very [46:48] very tall task [46:50] and [46:51] to exceed that [46:52] will eat [46:53] into the competence [46:54] of the other agencies [46:55] which [46:57] should be doing [46:58] resilience [47:00] and other [47:02] other [47:04] foundational efforts [47:06] so [47:08] we [47:10] we try to balance [47:11] the need to focus [47:12] the need to coordinate [47:14] with [47:15] the [47:16] the ability [47:18] also [47:20] to coordinate [47:21] international [47:22] cooperation [47:24] for [47:25] collective [47:26] resilience [47:27] on the [47:28] veteran side [47:29] we continue [47:33] to innovate [47:34] services [47:36] to our [47:37] veterans [47:38] which [47:39] not only [47:40] will [47:41] be [47:42] in terms [47:43] of [47:45] payment [47:46] but in terms [47:47] of [47:48] giving them [47:50] wellness [47:51] and dignity [47:52] so that they can [47:53] continue [47:54] their lives [47:55] after [47:57] they have [47:58] served [47:59] in a manner [48:00] which fits [48:01] their service [48:02] the veterans [48:04] memorial [48:05] medical center [48:06] as we said [48:07] your honors [48:09] now has [48:11] what we call [48:12] the valor clinics [48:13] to [48:14] disaggregate [48:17] basic medical services [48:20] throughout the country [48:22] throughout the country [48:23] so that [48:24] the veterans [48:25] do not need [48:26] to come to [48:27] the veterans [48:28] memorial [48:29] medical center [48:30] they have [48:31] scope that [48:32] before [48:33] the [48:34] spread [48:35] of [48:36] the veteran services [48:37] through the valor [48:38] clinics [48:39] only six percent [48:40] of the veterans [48:41] were able [48:42] to avail [48:43] of [48:44] medical treatment [48:45] and we have reported [48:47] to the president [48:48] that the structure [48:49] itself [48:50] of the medical center [48:51] is a cause [48:53] for high infection [48:54] rates because of [48:55] its age [48:56] and because of [48:57] its design [48:58] so it has to be [48:59] torn down [49:01] and rebuilt [49:02] because it is [49:04] it was made [49:05] right after liberation [49:07] your honors [49:08] and [49:09] it was a dormitory [49:10] type [49:11] of [49:12] hospital [49:13] just like the [49:14] Quezon Institute [49:15] before [49:16] and with today's [49:17] day and age [49:18] with the [49:19] with the strength [49:20] of viruses [49:21] that and [49:22] bacteria [49:23] that have [49:24] mutated [49:25] over time [49:26] we cannot [49:28] tolerate [49:29] a structure [49:30] of [49:31] that [49:32] kind [49:33] therefore [49:34] I believe [49:35] the president [49:36] has approved [49:37] phase one [49:38] where [49:39] we will [49:40] be constructing [49:41] an annex [49:42] where we transfer [49:43] the patients [49:44] while the [49:46] major reconstruction [49:47] work [49:48] is done [49:49] and [49:50] there will be [49:51] a big [49:52] outpatient [49:53] service [49:54] to co-locate [49:55] with the subway [49:56] exit that is being [49:57] constructed for the [49:58] convenience of [49:59] veterans [50:00] and the [50:01] end goal [50:03] is for it to become [50:04] a specialized [50:05] hospital [50:07] where [50:08] the [50:09] outreach clinics [50:10] cannot handle [50:11] anymore [50:12] likewise [50:13] to be a specialized [50:14] hospital for cases [50:16] where the [50:17] AFP Medical Center [50:18] cannot [50:19] handle [50:20] the [50:21] case [50:22] anymore [50:23] on the part of the [50:27] government arsenal [50:28] we have instructed [50:29] them [50:30] to [50:33] refocus [50:35] their efforts [50:36] on higher [50:38] technological [50:39] munitions [50:41] and other [50:42] implements [50:43] for so long [50:46] the [50:47] government arsenal [50:48] has [50:49] not [50:50] operated [50:51] as an arsenal [50:52] but as a [50:53] factory [50:54] and [50:56] we cannot [50:57] have it [50:58] continue [51:00] that way [51:01] because at the end [51:02] of the day [51:04] higher technological [51:05] transfer [51:06] will only happen [51:08] on a government [51:09] to government [51:10] secret basis [51:11] with our [51:13] preferred [51:14] like-minded [51:16] partners [51:17] and [51:18] the [51:20] government arsenal [51:22] will be [51:23] the foundation [51:24] for [51:25] these [51:26] venues [51:27] of [51:28] joint cooperation [51:29] on [51:30] highly [51:31] potentially [51:32] highly [51:33] highly [51:35] confidential [51:36] platforms [51:37] and mechanisms [51:38] and the evolution [51:39] of the same [51:40] so [51:42] their [51:43] their concentration [51:44] on [51:45] small arms [51:46] munition [51:47] ammunition [51:48] shall shift [51:49] to [51:52] indirect [51:53] fired [51:54] weapons [51:55] cruiser weaponry [51:56] which are in demand [51:57] throughout the world [51:58] and [51:59] as a [52:00] forum [52:01] for government [52:02] to government [52:03] cooperation [52:04] with our [52:05] like-minded [52:06] and [52:07] shall we say [52:10] shall we say [52:11] comprehensive [52:12] strategic [52:13] partner countries [52:14] I [52:15] gave a [52:16] brief [52:17] backdrop [52:18] your honor [52:19] of [52:20] the [52:24] operations [52:26] of the agency [52:27] of course [52:28] as the Senate [52:29] very well knows [52:30] we're also very busy [52:31] in building up [52:32] our like-minded [52:33] alliances [52:34] and we thank the Senate [52:35] for recently [52:36] ratifying [52:37] our status [52:38] of visiting forces [52:39] agreement [52:40] agreement [52:41] with France [52:42] and [52:43] I believe [52:44] there are two more [52:45] under negotiation [52:47] to this day [52:48] with like-minded [52:49] partners [52:50] and we await [52:52] the [52:53] culmination [52:54] of those processes [52:55] so we can [52:56] have [52:57] a greater synergy [52:58] with them [52:59] as soon as possible [53:00] with that [53:02] your honors [53:03] I will move [53:04] to the [53:05] highlights of [53:06] the proposed [53:07] budget [53:08] per the [53:09] national [53:10] expenditure [53:11] plan [53:12] we have a regular [53:13] fund [53:14] allocation [53:15] your honors [53:16] of 324 [53:17] points [53:18] 6 [53:19] billion [53:20] pesos [53:21] 10% [53:22] growth [53:23] and [53:25] 10% [53:30] year-on-year [53:31] growth [53:32] that's year-on-year [53:33] year-on-year [53:34] not from last year [53:35] so the annual [53:36] growth [53:40] the annual growth [53:41] will come [53:42] from [53:44] come on the [53:46] later slides [53:47] but year-on-year [53:48] is based on [53:49] fiscal year [53:50] twenty [53:51] twenty [53:53] twenty [53:54] twenty [53:55] twenty [53:56] twenty [53:57] twenty [53:58] twenty [53:59] twenty one [54:01] that is the base year [54:02] year-on-year [54:03] from twenty twenty [54:04] twenty one [54:07] next slide [54:08] it shows the percentage [54:09] share of the [54:10] OSEC [54:12] which is the [54:13] whole department [54:14] proper [54:15] the AFP [54:16] civilian bureaus [54:18] from the regular [54:19] agency funds [54:20] your honor [54:21] the [54:29] previous slide [54:32] please [54:33] sir [54:36] no [54:38] ah [54:39] ikaw [54:40] lumundag [54:41] ikaw wala [54:42] lumulundag [54:43] next slide [54:44] please [54:45] my indulgence [54:46] your honor [54:47] air force [54:48] kasi po [54:49] lundag [54:50] okay [54:55] so [54:56] okay [54:57] all right [55:00] the office of the secretary [55:02] uh [55:04] has [55:05] which is the whole DND [55:06] has [55:07] 0.49 share [55:10] percent [55:11] and it was reduced [55:12] by 31 percent [55:14] uh [55:16] from [55:17] year 2021 [55:18] which means to say [55:19] we have to work more [55:21] and hire less [55:22] for less [55:23] uh [55:24] to date [55:25] yeah [55:26] your your honor [55:27] uh [55:28] the DND proper [55:29] has [55:30] filled up of only 268 [55:32] uh [55:34] warm bodies [55:35] to include myself [55:36] and we have to handle [55:38] all [55:39] uh [55:40] of these systems [55:41] so it is unsustainable [55:42] in the long run [55:43] and we have already pending [55:45] in the house [55:46] uh [55:47] DND [55:48] regular organization bill [55:49] which [55:51] I [55:52] I mean for 260 [55:53] fill up [55:54] 324 [55:55] approved plantilla personnel [55:57] that's way way too small [56:01] for the amount of work [56:02] that we do [56:03] hence my [56:05] uh [56:06] shiny forehead [56:07] which progresses [56:08] your honor [56:09] uh [56:11] for the armed forces of the [56:12] philippines it has [56:13] 312 [56:14] billion [56:15] your honor [56:16] uh [56:17] 313 [56:18] which [56:19] is [56:20] uh [56:21] 96 percent [56:22] of the budget [56:25] for the civilian bureaus [56:26] your honor [56:27] uh [56:28] it has a [56:29] 3 percent [56:30] share [56:33] in in the national [56:34] expenditure [56:35] plan [56:37] next slide please [56:38] the breakdown [56:42] your honor [56:43] uh [56:46] shows that [56:47] the uh [56:48] DND proper [56:49] received a decrease [56:50] the government arsenal [56:51] decreased [56:53] NDC [56:55] decreased [56:56] uh [56:59] OCD [57:00] decreased [57:01] and PIBAU [57:02] decreased [57:03] your honor [57:05] I believe [57:06] uh [57:07] these [57:08] also [57:09] require some [57:10] yes [57:11] your honor [57:12] uh [57:13] I ask permission [57:14] to interject [57:15] opo [57:16] kasi wala ba kayo updated [57:17] na uh [57:18] briefing kasi [57:19] i understand the house [57:20] has already [57:21] augmented [57:22] no hindi na ito [57:23] 324 [57:24] yung house version [57:25] it's already at uh [57:27] we have not received sir [57:29] a [57:30] wala pa kayong [57:31] wala pa po kaming [57:32] official [57:33] wala pa po kaming [57:34] official ano [57:35] sa house [57:36] uh [57:37] maghingi kayo sa chairman [57:38] meron na kami [57:39] opo [57:40] para mapasalamatan din [57:41] ho namin [57:42] para na ma-update [57:43] kasi [57:44] out of date na rin yung [57:45] 324 [57:46] yes sir [57:47] na figure [57:48] thank you [57:49] sorry for uh [57:50] interjecting [57:51] kasi po sir [57:52] pag hindi na [57:53] hindi ba we cannot present [57:54] the house version [57:55] hanggat hindi nyo maaproobahan [57:56] kasi [57:57] ano eh [58:01] pero that's good news sir [58:02] thank you very much [58:03] for the good news [58:04] uh [58:08] so sir may I proceed [58:11] to the next slide [58:12] already [58:16] next slide already [58:17] the automatic appropriations [58:21] the regular funds sir [58:22] is uh [58:23] 324.63 [58:25] the automatic appropriations [58:28] for personnel [58:29] uh [58:30] is 4.1 billion [58:33] and the special purpose fund [58:35] which is uh [58:36] composed of the pensions [58:38] is uh [58:40] uh [58:42] 132 [58:43] uh [58:44] billion [58:51] the modernization program [58:52] is included here with [58:53] 50 billion [58:57] on the next slide [58:58] personal uh [59:05] personal services [59:08] uh [59:09] we have a slight increase [59:13] of 179 [59:15] in line with [59:16] our uh [59:18] goal to increase [59:20] our footprint [59:21] on MOE sir [59:25] which is uh [59:26] quite important [59:27] for us [59:29] because of the [59:30] tempo [59:31] of operations [59:32] right now [59:33] I can say [59:34] your honors [59:35] that uh [59:36] our tempo [59:38] now [59:39] is beyond [59:40] 100% [59:41] uh [59:43] meaning to say [59:44] uh [59:45] it's uh [59:46] beyond design [59:47] because of the number [59:48] of personnel [59:49] we have [59:50] to sustain [59:51] the number [59:52] of activities [59:53] we do [59:54] uh [59:55] that [59:56] takes into account [59:57] internal security [59:58] HADR [59:59] and [1:00:00] uh [1:00:01] for joint exercises [1:00:02] retraining [1:00:03] what suffers here [1:00:05] is the amount [1:00:06] of [1:00:07] rest [1:00:08] and retraining [1:00:09] time [1:00:10] that our men [1:00:11] and [1:00:12] women [1:00:13] uh [1:00:14] have [1:00:15] uh [1:00:16] right now [1:00:17] we do not have enough [1:00:18] process both [1:00:19] for [1:00:20] on the operational [1:00:21] side [1:00:23] to have [1:00:24] adequate [1:00:25] R&R [1:00:27] for them [1:00:28] and secondly [1:00:29] we lack [1:00:30] personnel [1:00:31] on the support [1:00:32] side [1:00:33] uh [1:00:34] the ratio of operating [1:00:35] to support personnel [1:00:36] is uh [1:00:37] 80-20 [1:00:38] uh [1:00:39] more or less [1:00:40] which is unsustainable [1:00:41] because [1:00:42] uh [1:00:43] logistics [1:00:44] intelligence [1:00:45] planning [1:00:46] uh [1:00:48] we need a robust [1:00:49] infrastructure [1:00:50] in order to sustain [1:00:52] the operations [1:00:53] so [1:00:58] so the [1:00:59] uh [1:01:00] the [1:01:01] uh [1:01:02] increase is [1:01:03] much much welcome [1:01:04] particularly your honor [1:01:05] with the cost of fuel [1:01:06] right now [1:01:07] last year [1:01:08] it is good that we were able [1:01:09] to hedge [1:01:11] the cost of fuel [1:01:12] and assume that [1:01:13] they would rise [1:01:14] uh [1:01:16] so uh [1:01:17] this year [1:01:18] that [1:01:19] that the [1:01:20] increase [1:01:21] is uh [1:01:22] relevant [1:01:24] with capital outlay [1:01:27] this is where [1:01:29] our biggest gap [1:01:30] is [1:01:31] we need a lot of infrastructure [1:01:33] like right now [1:01:34] particularly your honors on the eastern seaboard [1:01:37] board [1:01:38] where we do not have [1:01:40] uh [1:01:41] naval presence [1:01:42] we do not have substantial [1:01:44] infrastructure [1:01:46] uh [1:01:47] also [1:01:48] on [1:01:49] uh [1:01:50] in palawan [1:01:51] not for the naval purposes [1:01:53] but for the army purposes [1:01:55] which will serve as hubs [1:01:58] for supporting our strategic bases [1:02:01] Mindoro [1:02:03] uh [1:02:04] our presence too [1:02:05] in Mindoro [1:02:06] Mindoro is only one brigade [1:02:08] and with the size of Mindoro [1:02:11] your honor [1:02:12] that is [1:02:13] uh [1:02:14] two [1:02:15] that is not sufficient [1:02:16] in northern Luzon [1:02:17] we have only one division [1:02:19] for how many provinces [1:02:21] and [1:02:23] uh [1:02:24] we only have one [1:02:25] naval force [1:02:27] in that area [1:02:28] which spans [1:02:29] the south china sea [1:02:30] to the pacific ocean [1:02:31] so uh [1:02:33] we [1:02:34] we really need [1:02:35] to [1:02:36] refocus [1:02:37] our strategic [1:02:38] positioning [1:02:39] in these areas [1:02:40] your honor [1:02:41] and we cannot do that [1:02:42] until [1:02:43] sustainably [1:02:44] until the army [1:02:46] uh [1:02:47] solidifies [1:02:48] its footprint [1:02:49] in the Philippines [1:02:50] so [1:02:51] capital outlay [1:02:53] your honor [1:02:54] is [1:02:55] extremely important [1:02:56] also [1:02:57] for building [1:02:58] critical [1:02:59] infrastructure [1:03:00] facilities [1:03:01] for [1:03:02] for security [1:03:03] of our platforms [1:03:04] and security [1:03:05] of our operations [1:03:06] I believe [1:03:07] the [1:03:08] capital [1:03:09] outlay gap [1:03:10] has [1:03:11] been [1:03:13] one of the [1:03:14] major gaps [1:03:15] that we have [1:03:16] found out [1:03:17] right now [1:03:18] we have to [1:03:19] catch up [1:03:20] badly [1:03:21] with [1:03:22] and [1:03:23] it includes [1:03:24] also [1:03:25] access [1:03:26] to [1:03:27] our bases [1:03:28] in [1:03:29] terms of [1:03:30] the durability [1:03:31] infrastructure [1:03:32] for example [1:03:33] the roads [1:03:34] and bridges [1:03:35] that will link [1:03:36] our bases [1:03:37] we have found [1:03:38] that normal roads [1:03:39] and bridges [1:03:40] will not be able [1:03:41] to support [1:03:42] some of the platforms [1:03:43] that we have [1:03:44] currently [1:03:45] because of the weight [1:03:46] so our mobility [1:03:50] is [1:03:51] a sacrifice [1:03:52] that [1:03:53] we cannot really [1:03:54] bridge the whole [1:03:55] of the Philippines [1:03:56] but the best [1:03:57] that we can do [1:03:58] is to provide [1:04:00] hubs [1:04:01] as many hubs [1:04:02] as possible [1:04:03] which will [1:04:06] which will [1:04:07] support [1:04:08] sustained [1:04:09] operations [1:04:10] secondly [1:04:11] your honour [1:04:12] just like any [1:04:13] other [1:04:14] entity [1:04:15] in the world [1:04:16] right now [1:04:17] it's not a matter [1:04:18] of just in time [1:04:19] but a matter of [1:04:20] reserves [1:04:21] and stores [1:04:22] and that [1:04:23] we are busy [1:04:24] building up [1:04:25] our reserve [1:04:26] and stores [1:04:27] not only [1:04:28] in terms [1:04:29] of [1:04:30] munitions [1:04:31] but we need it [1:04:32] also in terms [1:04:33] of petroleum [1:04:33] oil [1:04:34] and lubricants [1:04:35] we have big [1:04:36] notional [1:04:37] amounts [1:04:38] of petroleum [1:04:39] ready [1:04:40] but if we do not [1:04:41] have physical [1:04:42] custody of this [1:04:43] we will be relying [1:04:44] on private gas [1:04:45] stations [1:04:46] to serve [1:04:47] our needs [1:04:48] which is [1:04:49] a vulnerability [1:04:51] of [1:04:52] of [1:04:53] our [1:04:55] our operating [1:04:56] troops [1:04:57] and it provide [1:04:58] it [1:04:59] poses difficulties [1:05:02] for the troops [1:05:03] rather than [1:05:04] have them [1:05:05] serviced [1:05:06] in a durable [1:05:07] basis [1:05:08] that perhaps [1:05:10] up to the battalion [1:05:11] level [1:05:15] next slide please [1:05:16] the breakdown [1:05:22] of [1:05:23] regular [1:05:24] fund [1:05:26] versus [1:05:27] the [1:05:30] 2026 [1:05:31] and 2027 [1:05:32] comparatives [1:05:33] your honour [1:05:34] so we have [1:05:38] a slight increase [1:05:39] increase [1:05:40] of [1:05:41] 6.13% [1:05:42] versus [1:05:45] last year [1:05:46] of [1:05:47] 18 billion [1:05:50] but [1:05:51] I believe [1:05:52] the increase [1:05:53] is reflected [1:05:54] more [1:05:55] in [1:05:56] MOE [1:05:59] than any [1:06:00] other item [1:06:01] next slide [1:06:02] modernisation [1:06:11] your honour [1:06:12] 2026 [1:06:13] was [1:06:14] 90 [1:06:15] with [1:06:16] programmed [1:06:17] of 40 [1:06:18] and [1:06:19] unprogrammed [1:06:20] this year [1:06:21] 50 [1:06:22] 50 [1:06:24] pensions [1:06:26] have [1:06:27] increased [1:06:31] by [1:06:32] 13.15% [1:06:33] total [1:06:34] next slide [1:06:43] for [1:06:52] proposals [1:06:53] your honour [1:06:54] our [1:06:55] proposals [1:06:56] are based [1:06:57] on our [1:06:58] approximation [1:06:59] of threats [1:07:00] and costs [1:07:01] and sustainability [1:07:04] of activities [1:07:05] as we plan [1:07:06] them based [1:07:07] on threats [1:07:08] it's [1:07:09] lower [1:07:11] by [1:07:12] 248 [1:07:15] billion [1:07:16] compared [1:07:19] to the [1:07:20] original proposal [1:07:21] we made [1:07:22] but this does not include [1:07:23] one-time [1:07:26] enhancements [1:07:27] of [1:07:28] equipment [1:07:29] and capabilities [1:07:30] which will balloon [1:07:31] the figure [1:07:32] to very very [1:07:33] high amounts [1:07:34] so we just [1:07:35] included [1:07:36] our basic [1:07:37] requirements [1:07:38] your honour [1:07:45] next slide [1:07:47] please [1:07:48] our breakdown [1:07:51] shows as follows [1:07:52] your honour [1:07:53] your honour [1:07:55] of course [1:07:56] from the office [1:07:57] of the secretary [1:07:58] it's less [1:07:59] 16% [1:08:00] from what was [1:08:01] asked [1:08:02] from the army [1:08:04] it's [1:08:05] less [1:08:06] by 23% [1:08:08] Air Force [1:08:09] 24% [1:08:10] Navy [1:08:11] 30% [1:08:13] and GHQ [1:08:14] 82% [1:08:15] and why GHQ [1:08:18] GHQ [1:08:19] your honour [1:08:20] includes the [1:08:21] area commands [1:08:22] which are the [1:08:23] principal operating [1:08:24] commands [1:08:25] five area commands [1:08:28] and the budget [1:08:29] of the area commands [1:08:30] come from the GHQ [1:08:32] our intelligence command [1:08:34] our sustainment command [1:08:36] and importantly [1:08:37] our strategic command [1:08:40] from which our deterrent capabilities [1:08:42] will flow [1:08:43] are sourced from the GHQ budget [1:08:47] so this does not mean to say [1:08:50] that it is GHQ [1:08:52] itself [1:08:53] but [1:08:54] the [1:08:55] budgets [1:08:56] of [1:08:57] NOLCOM [1:08:58] SOLCOM [1:08:59] WESTCOM [1:09:00] BISCOM [1:09:03] EASTMINCOM [1:09:04] and WESTMINCOM [1:09:06] these are the operating budgets [1:09:09] that come out [1:09:10] of [1:09:11] the GHQ budget [1:09:13] so [1:09:14] the reduction [1:09:15] in GHQ [1:09:19] will [1:09:20] result [1:09:21] in a gap [1:09:22] of operations [1:09:23] by the area commands [1:09:25] which are the principal [1:09:26] operating commands [1:09:27] and [1:09:28] therefore [1:09:29] if that is the case [1:09:30] then [1:09:31] we will have [1:09:33] to concentrate [1:09:34] the budget [1:09:35] on [1:09:36] the areas [1:09:37] where there is [1:09:38] a biggest threat [1:09:39] possible [1:09:40] and that will open us [1:09:41] to gaps [1:09:42] in the other areas [1:09:47] in the [1:09:48] government arsenal [1:09:49] there is a reduction [1:09:50] of [1:09:52] 11% [1:09:54] NDCP [1:09:57] 6% [1:09:58] office of civil defense [1:10:00] 53% [1:10:01] Philippine veterans [1:10:03] affairs [1:10:04] office [1:10:05] 23% [1:10:06] and veterans [1:10:07] memorial [1:10:09] it's [1:10:10] 61% [1:10:11] but this [1:10:12] does not reflect [1:10:13] the [1:10:18] infrastructure [1:10:19] that is going to be sourced [1:10:20] from the office of the president [1:10:23] and [1:10:24] for [1:10:25] these agencies [1:10:26] they have one time items [1:10:27] which [1:10:28] for [1:10:29] 2020 [1:10:30] 2025 [1:10:31] which increase their budgets [1:10:33] thus the reductions [1:10:35] your honor [1:10:36] and with the [1:10:37] veterans memorial [1:10:38] medical center [1:10:39] they have trust receipts [1:10:40] from the [1:10:41] DOTR [1:10:43] because of the subway [1:10:44] the [1:10:51] AFP modernization [1:10:52] your honor [1:10:53] the proposal [1:10:54] was 133 [1:10:55] based [1:10:56] based on [1:10:59] the [1:11:00] re [1:11:03] horizon 3 [1:11:05] of the [1:11:06] modernization program [1:11:07] which has [1:11:10] already [1:11:11] it's in the process [1:11:12] of being revised [1:11:13] again [1:11:15] because of [1:11:16] increased threats [1:11:17] and increased costs [1:11:18] costs [1:11:19] so we once again [1:11:20] will appeal [1:11:22] and I think it's [1:11:23] pending on the [1:11:24] house to already [1:11:25] abolish the [1:11:26] modernization [1:11:27] law because we [1:11:28] cannot work on [1:11:29] 15 year [1:11:30] horizons your honor [1:11:31] which the [1:11:32] modernization [1:11:33] law provides [1:11:34] it [1:11:36] it [1:11:37] it is not [1:11:38] a sustainable [1:11:39] way of [1:11:40] planning your [1:11:41] modernization [1:11:43] anymore [1:11:44] in a more [1:11:46] for lack [1:11:48] of a better [1:11:49] term but to use [1:11:50] an economic [1:11:51] term an [1:11:52] opportunistic [1:11:55] defense [1:11:56] market [1:11:57] and environment [1:11:58] we proposed [1:12:01] your honor [1:12:02] 134 billion [1:12:04] but only 50 [1:12:05] billion [1:12:06] was included [1:12:07] I think the [1:12:09] 50 billion your [1:12:10] honor [1:12:11] there is a [1:12:12] sort of [1:12:13] if [1:12:14] attachment [1:12:16] to the [1:12:18] 50 billion [1:12:19] amount [1:12:21] for the past [1:12:22] how many years [1:12:23] already [1:12:24] and it was also [1:12:25] due to the [1:12:26] alignment [1:12:27] perhaps of [1:12:28] the [1:12:29] revised [1:12:30] AFP [1:12:31] modernization [1:12:32] to the [1:12:33] basis conversion [1:12:34] law [1:12:35] and dividends [1:12:37] from that [1:12:38] but we know [1:12:39] that the [1:12:40] basis conversion [1:12:41] BCDA [1:12:42] has only [1:12:43] remitted [1:12:44] a total [1:12:46] of 26 [1:12:47] billion [1:12:48] pesos [1:12:49] to [1:12:51] the [1:12:52] AFP [1:12:53] for the past [1:12:54] 45 billion [1:12:55] for the past [1:12:56] 26 years [1:12:57] so it [1:12:58] is not a [1:12:59] sustainable [1:13:00] way of going [1:13:01] forward [1:13:02] and yet [1:13:03] it has taken [1:13:04] away from us [1:13:05] assets [1:13:06] which cannot be [1:13:07] replicated [1:13:08] because of their [1:13:09] strategic location [1:13:10] and strategic [1:13:11] makeup [1:13:12] makeup [1:13:14] so I [1:13:15] I believe that [1:13:16] the situation [1:13:20] cannot be allowed [1:13:21] to continue [1:13:22] that more [1:13:23] military [1:13:26] reservations [1:13:27] which have to be [1:13:29] devoted to [1:13:31] national defense [1:13:32] are thought of [1:13:34] as [1:13:36] commercial [1:13:37] endeavors [1:13:38] because at the [1:13:39] end of the day [1:13:40] it will not fund [1:13:42] your modernization [1:13:44] in any significant [1:13:45] way [1:13:46] at all [1:13:47] as history [1:13:48] has proven [1:13:49] so there are [1:13:56] relatively few [1:13:57] changes [1:13:58] your honor [1:13:59] for [1:14:00] the rest [1:14:01] of the [1:14:02] items [1:14:03] next slide [1:14:06] for the [1:14:09] physical accomplishments [1:14:10] your honor [1:14:11] we [1:14:13] accomplished [1:14:14] 100% [1:14:15] next slide [1:14:16] please [1:14:18] of [1:14:21] DND [1:14:22] OSEC policies [1:14:23] and I [1:14:25] I [1:14:27] also [1:14:28] have to [1:14:29] beg the [1:14:30] indulgence [1:14:31] of [1:14:33] everybody here [1:14:34] under our department [1:14:35] because any new policy [1:14:36] causes a headache [1:14:37] to them [1:14:38] and they would wish [1:14:39] that I would not be [1:14:40] churning out [1:14:41] more and more [1:14:42] policies [1:14:43] anymore [1:14:44] sorry [1:14:45] so [1:14:47] 80% [1:14:48] of those [1:14:49] policies [1:14:50] and strategies [1:14:51] were accepted [1:14:52] by the president [1:14:53] and the cabinet [1:14:54] your honor [1:14:59] next slide [1:15:03] please [1:15:04] the AFP [1:15:05] 81% [1:15:06] of the [1:15:07] tactical units [1:15:08] provided force [1:15:09] employers [1:15:10] for the [1:15:15] Philippine Army [1:15:17] Philippine Air Force [1:15:18] 100% [1:15:19] and for the [1:15:20] Philippine Navy [1:15:20] 100% [1:15:21] your honor [1:15:22] however [1:15:24] I would like to point out [1:15:25] that [1:15:26] in the case of the Air Force [1:15:28] and the Navy [1:15:29] the 100% [1:15:30] is not a figure [1:15:31] that [1:15:33] of course [1:15:35] for this year [1:15:36] and last year [1:15:37] we should be very proud of [1:15:39] but we should be worried [1:15:41] if it continues in the future [1:15:42] because 100% [1:15:43] is unsustainable [1:15:45] that means to say [1:15:46] we are already [1:15:48] at max capacity [1:15:49] if not less [1:15:50] so that means to say [1:15:53] that the capacity [1:15:54] of the agencies [1:15:56] are not enough [1:15:58] to sustain [1:15:59] the needs of [1:16:01] of the environment [1:16:04] your honor [1:16:05] that we work in [1:16:06] continue please [1:16:13] next slide [1:16:16] next slide [1:16:19] on the joint force [1:16:20] planning program [1:16:21] your honor [1:16:22] we [1:16:23] 234 plans [1:16:26] and programs [1:16:27] were [1:16:28] were accomplished [1:16:29] and for the first semester [1:16:31] of this year [1:16:32] there were 117 [1:16:33] already [1:16:34] accomplished [1:16:35] most of these [1:16:36] your honor [1:16:37] are for joint [1:16:38] and combined [1:16:41] anti [1:16:42] anticipative actions [1:16:44] training exercises [1:16:46] scenario building [1:16:47] and scoping [1:16:50] exercises [1:16:51] on operations [1:16:53] your honor [1:16:54] the joint [1:16:55] force operations [1:16:56] program [1:16:57] for operations [1:16:59] 159 [1:17:01] were complied [1:17:03] with [1:17:04] last year [1:17:05] out of [1:17:06] 182 [1:17:07] and most [1:17:08] of these plans [1:17:09] were not [1:17:10] the [1:17:11] unfulfilled [1:17:14] portion [1:17:15] was due [1:17:17] to [1:17:18] natural [1:17:21] calamities [1:17:22] that [1:17:23] would [1:17:24] of course [1:17:25] necessitate [1:17:26] the [1:17:27] diversion [1:17:28] of the [1:17:29] resources [1:17:30] to humanitarian [1:17:31] assistance [1:17:32] and disaster response [1:17:33] this year [1:17:37] your honor [1:17:38] we have already [1:17:39] completed [1:17:40] 54% [1:17:41] of our targets [1:17:42] as of [1:17:43] the first semester [1:17:44] however [1:17:45] at the end of the year [1:17:46] we expect [1:17:47] to complete [1:17:48] 100% [1:17:50] security operations [1:17:52] operations [1:17:53] of course [1:17:54] your honor [1:17:55] in connection [1:17:56] with [1:17:57] and in cooperation [1:17:58] with our [1:17:59] civilian law enforcement agencies [1:18:00] there are about [1:18:01] 5900 [1:18:02] activities [1:18:03] that were [1:18:04] covered [1:18:05] last year [1:18:06] and this year [1:18:07] 3,000 [1:18:08] the most important [1:18:09] of which are the [1:18:10] ASEAN series [1:18:11] of engagements [1:18:13] for capability [1:18:16] programs [1:18:17] your honor [1:18:18] the patients [1:18:20] treated [1:18:21] by [1:18:23] the [1:18:24] AFP [1:18:25] medical center [1:18:26] and other [1:18:27] station hospitals [1:18:28] were 12,000 [1:18:29] accomplishment [1:18:30] was 11,000 [1:18:31] as of [1:18:33] 2025 [1:18:35] with [1:18:36] 12,000 [1:18:37] targets [1:18:38] while [1:18:39] this year [1:18:40] your honor [1:18:41] since [1:18:42] there was [1:18:44] a gap [1:18:45] last year [1:18:46] we reduced [1:18:47] the [1:18:48] target [1:18:49] level [1:18:50] to [1:18:51] 10,000 [1:18:52] we have [1:18:53] already [1:18:54] had an [1:18:55] accomplishment [1:18:56] of more [1:19:00] than 50% [1:19:01] 10 signed [1:19:02] AFP modernization [1:19:03] projects [1:19:04] are [1:19:05] being implemented [1:19:06] so [1:19:07] we have [1:19:08] 60% [1:19:09] six [1:19:10] have already [1:19:11] been accomplished [1:19:12] for this year [1:19:13] last year [1:19:14] there were [1:19:15] 10 targets [1:19:16] your honor [1:19:17] we accomplished [1:19:18] 17 [1:19:19] because [1:19:20] of [1:19:21] the [1:19:22] previous [1:19:23] year's [1:19:24] unfulfilled [1:19:26] targets [1:19:27] next [1:19:29] slide [1:19:30] please [1:19:31] for the government arsenal [1:19:57] your honor [1:19:58] 98% [1:19:59] is the target [1:20:00] this year [1:20:01] last year [1:20:03] last year [1:20:04] we accomplished [1:20:05] only 63% [1:20:06] of the target [1:20:07] because of [1:20:08] the unavailability [1:20:09] of propellants [1:20:10] the shortage [1:20:11] of propellants [1:20:12] and other critical [1:20:13] components [1:20:14] in the international [1:20:15] market [1:20:16] the situation [1:20:17] your honor [1:20:18] in the international [1:20:19] market now [1:20:20] it is a [1:20:21] seller's market [1:20:22] and even though [1:20:23] you have fixed [1:20:24] contracts [1:20:25] they will willingly [1:20:26] pay [1:20:27] the [1:20:28] liquidated [1:20:29] damages [1:20:30] and other [1:20:31] punitive [1:20:32] amounts [1:20:33] because of [1:20:34] the [1:20:35] amounts [1:20:37] being offered [1:20:38] by [1:20:39] other users [1:20:40] given [1:20:41] the [1:20:42] several conflicts [1:20:43] that are occurring [1:20:44] now both in the Middle East [1:20:45] and in Ukraine [1:20:46] defense and security [1:20:51] leaders capacity [1:20:52] your honor [1:20:53] we [1:20:54] 100% [1:20:55] of our research papers [1:20:57] have been accepted [1:21:00] the same target [1:21:01] this year [1:21:02] 33% [1:21:07] of [1:21:08] 53 [1:21:09] senior [1:21:10] leaders [1:21:11] from [1:21:13] the [1:21:14] DND and AAP [1:21:15] and may I correct [1:21:16] this too [1:21:17] it's not only senior [1:21:18] leaders [1:21:19] well we can say [1:21:21] senior leaders [1:21:22] too because we opened [1:21:23] up the MNSA [1:21:24] program [1:21:25] to [1:21:26] enlisted personnel [1:21:27] on the NCO [1:21:28] level because [1:21:29] their leaders [1:21:30] leadership [1:21:31] and their [1:21:32] critical skills [1:21:33] and critical knowledge [1:21:35] is just as important [1:21:36] as our [1:21:37] officer [1:21:38] core [1:21:43] and your honor [1:21:45] there is a growth [1:21:46] challenge with the [1:21:47] NDCP now [1:21:48] because [1:21:49] we are [1:21:51] on the process [1:21:52] of [1:21:57] reshaping [1:21:58] the curriculum [1:21:59] knowing [1:22:00] fully well [1:22:01] that [1:22:02] national security [1:22:03] is multidimensional [1:22:04] so [1:22:06] a fixed [1:22:07] paradigm [1:22:08] of national [1:22:09] security [1:22:10] as an academic [1:22:11] endeavor [1:22:12] will not help [1:22:15] therefore [1:22:16] we continue [1:22:17] with faculty [1:22:18] development [1:22:19] advancing [1:22:21] coordination [1:22:22] and cooperation [1:22:23] with other [1:22:24] high-level research [1:22:25] agencies [1:22:26] security agencies [1:22:27] probably [1:22:29] probably the national [1:22:30] security paradigm [1:22:31] before work [1:22:33] in an internal [1:22:34] security environment [1:22:35] but nowadays [1:22:36] with the [1:22:37] different [1:22:38] dimensions [1:22:39] of [1:22:40] conflict [1:22:41] to include [1:22:42] cyber conflict [1:22:43] and cognitive [1:22:44] warfare [1:22:45] and who knows [1:22:46] what will happen [1:22:47] in the future [1:22:48] it is not [1:22:49] anticipative [1:22:51] enough [1:22:52] the [1:22:53] the [1:22:54] academic [1:22:55] output [1:22:56] of the NDCP [1:22:57] the teacher [1:23:00] to student [1:23:01] ratio is still [1:23:02] one is to ten [1:23:03] but I'm still [1:23:04] want to know [1:23:05] the research [1:23:06] output [1:23:07] of the institution [1:23:08] and that is what [1:23:10] I keep on pushing [1:23:11] them to be doing [1:23:12] because if they do [1:23:14] not publish [1:23:15] they do not [1:23:16] produce [1:23:17] peer-reviewed [1:23:21] publications [1:23:23] then [1:23:24] we are not [1:23:25] passing our [1:23:26] our job [1:23:27] we [1:23:28] we [1:23:29] we don't [1:23:30] pass the [1:23:32] test [1:23:33] so [1:23:35] next slide [1:23:40] on OCD [1:23:41] your honor [1:23:42] as [1:23:43] we [1:23:44] we said [1:23:45] that [1:23:47] 65% [1:23:48] of the [1:23:49] we [1:23:50] we [1:23:51] are [1:23:53] concentrating [1:23:54] right now [1:23:55] on [1:23:56] response [1:23:57] and [1:23:58] we [1:23:59] also [1:24:00] had to change [1:24:01] the view [1:24:03] of [1:24:04] the minimum [1:24:05] required standards [1:24:06] for example [1:24:08] the Gawad [1:24:09] Kalinga Awards [1:24:10] they were [1:24:11] even [1:24:12] awarding before [1:24:13] awards for [1:24:15] more than [1:24:16] compliant [1:24:17] but how can you say [1:24:21] you're more than [1:24:22] compliant [1:24:23] when disaster risk [1:24:24] reduction is a [1:24:25] continuing endeavor [1:24:26] and actually [1:24:27] how can you be more [1:24:29] compliant [1:24:30] with an [1:24:31] for example an [1:24:32] earthquake scenario [1:24:33] which nobody knows [1:24:34] the outcome [1:24:35] so a more than [1:24:37] compliant [1:24:38] rating to me [1:24:39] is impossible [1:24:41] so we [1:24:42] we [1:24:43] we [1:24:44] abolished [1:24:45] that [1:24:46] that standard [1:24:47] and [1:24:48] asked them to [1:24:49] refocus on [1:24:50] the ability to [1:24:51] coordinate [1:24:53] to exercise [1:24:54] leadership [1:24:55] in coordination [1:24:56] with the different [1:24:57] departments [1:24:58] and the local [1:24:59] government units [1:25:01] so [1:25:02] even the training [1:25:03] for [1:25:05] first responders [1:25:08] your honor [1:25:09] it should be on a [1:25:10] clustered basis [1:25:11] basis we we as we see [1:25:13] the disasters now [1:25:14] because the paradigm [1:25:16] of first responder [1:25:17] coming from the [1:25:19] affected community [1:25:20] it does not hold [1:25:24] water right now [1:25:25] because how can they [1:25:27] respond when [1:25:28] two or three [1:25:29] municipalities [1:25:30] are subject to [1:25:32] stress at the same [1:25:33] time so it needs [1:25:36] a different approach [1:25:37] and I give an example [1:25:39] for the [1:25:40] Ligtas Pinoy Act [1:25:41] where each town [1:25:42] should have an [1:25:43] evacuation center [1:25:44] I [1:25:46] we had a very [1:25:47] difficult time [1:25:48] and right now [1:25:49] identifying [1:25:50] if that is [1:25:51] feasible or [1:25:52] not [1:25:53] each town [1:25:54] should have [1:25:55] an evacuation [1:25:56] center [1:25:57] but in an [1:25:58] area [1:25:59] perhaps [1:26:01] even outside [1:26:02] the physical [1:26:03] boundaries of [1:26:04] that town [1:26:05] which can [1:26:06] support the [1:26:07] evacuees [1:26:10] so we we [1:26:11] we we had the [1:26:12] first list of [1:26:13] approved areas [1:26:14] for the [1:26:15] Ligtas Pinoy [1:26:16] centers [1:26:17] but it will be a [1:26:19] continuing challenge [1:26:20] for us to [1:26:21] identify [1:26:22] suitable areas [1:26:24] that can [1:26:25] accept the [1:26:26] quantity [1:26:27] of [1:26:28] evacuees [1:26:29] should a [1:26:32] disaster [1:26:33] affect one [1:26:35] area [1:26:36] an example would [1:26:37] be in the [1:26:38] Negros [1:26:39] Ashfall [1:26:40] your honor [1:26:41] about four or [1:26:43] five municipalities [1:26:44] were affected [1:26:45] but the [1:26:46] only safe [1:26:47] evacuation [1:26:48] center would [1:26:49] be in another [1:26:50] distant [1:26:51] municipality [1:26:52] the same [1:26:53] area [1:26:54] the same [1:26:55] situation [1:26:56] with Bicol [1:26:57] when you have a [1:26:58] six kilometer [1:26:59] exclusion zone [1:27:01] so that [1:27:02] that is a [1:27:03] dimension [1:27:04] which we are [1:27:05] working with [1:27:06] we will also [1:27:07] report the [1:27:08] results to [1:27:09] congress to [1:27:10] refine whatever [1:27:11] modifications [1:27:12] are needed [1:27:13] your honor [1:27:18] the rest of the [1:27:19] accomplishments your [1:27:20] honor we we [1:27:21] met one hundred [1:27:22] percent of the [1:27:23] targets [1:27:27] next slide [1:27:28] for PIVAO your [1:27:32] honor on the [1:27:33] veterans welfare [1:27:34] and benefits [1:27:35] yeah [1:27:36] one hundred [1:27:37] percent of [1:27:40] the target [1:27:42] was accomplished [1:27:43] because these [1:27:44] are regular [1:27:45] regular pensions [1:27:47] and it is only [1:27:48] in the [1:27:49] efficiency of [1:27:52] the payment [1:27:53] on [1:27:56] on the [1:28:03] veterans [1:28:05] affairs [1:28:06] management [1:28:07] programs [1:28:08] still [1:28:10] it is a [1:28:11] question [1:28:12] your honor [1:28:13] of [1:28:14] getting [1:28:15] the number [1:28:16] of bona fide [1:28:17] the accredited [1:28:18] veterans [1:28:19] or their [1:28:22] dependents [1:28:23] so 57 [1:28:25] percent of the [1:28:26] target [1:28:27] are [1:28:29] are [1:28:30] was accomplished [1:28:31] this is of [1:28:32] particular importance [1:28:33] your honor [1:28:34] because of a [1:28:35] recent phenomenon [1:28:36] that [1:28:37] we worked with [1:28:40] with the [1:28:41] US government [1:28:42] the US government [1:28:43] recently gave a [1:28:44] grant to the [1:28:45] Veterans Memorial [1:28:46] Medical Center [1:28:47] because of [1:28:48] the [1:28:50] prevalence [1:28:51] yet [1:28:53] of [1:28:55] not the [1:28:56] presence [1:28:57] not prevalence [1:28:58] the presence [1:28:59] of tuberculosis [1:29:00] among our [1:29:02] veterans [1:29:03] we are able [1:29:05] only to [1:29:06] track [1:29:07] six hundred [1:29:08] six [1:29:09] how [1:29:10] how [1:29:11] how many [1:29:12] there is a [1:29:14] gap [1:29:15] of [1:29:17] two thousand [1:29:18] I believe [1:29:19] that we need [1:29:21] to track [1:29:22] and [1:29:23] this will [1:29:24] only happen [1:29:25] the [1:29:26] PVAO [1:29:27] is [1:29:28] adequately [1:29:29] tracking [1:29:30] our veterans [1:29:31] so [1:29:32] this [1:29:33] PVAO [1:29:34] rather than [1:29:35] have [1:29:37] recognition [1:29:38] ceremonies [1:29:39] which are also [1:29:40] important [1:29:41] they need to go out [1:29:42] in the field [1:29:43] right now [1:29:44] to scope [1:29:45] the number of veterans [1:29:46] and to bring them [1:29:47] within [1:29:48] the VMMC [1:29:49] environment [1:29:50] so we can [1:29:51] adequately [1:29:52] track [1:29:54] their wellness [1:29:55] health care [1:29:56] and they have also [1:29:57] been tasked [1:29:58] to work [1:29:59] with the VMMC [1:30:00] to build [1:30:02] hospices [1:30:03] your honor [1:30:04] where our veterans [1:30:05] can retire [1:30:06] with dignity [1:30:07] a lot of them [1:30:09] as [1:30:11] Senator [1:30:12] Laxon knows [1:30:14] have been [1:30:15] constrained [1:30:16] to have an [1:30:18] extended period [1:30:19] of stay [1:30:20] in the hospitals [1:30:21] although [1:30:23] they do not need [1:30:24] medical care [1:30:25] care [1:30:26] but they need [1:30:27] aged [1:30:29] geriatric [1:30:32] care [1:30:33] why [1:30:34] because they have [1:30:35] no families [1:30:36] and nobody to take [1:30:37] care of them [1:30:39] and it will be heartless [1:30:40] for the [1:30:41] doctors [1:30:42] in the [1:30:43] VMMC [1:30:44] to discharge them [1:30:45] so the [1:30:48] PIVA was [1:30:49] tasked [1:30:50] to make this [1:30:51] a priority [1:30:52] we have also [1:30:54] seen [1:30:55] and I have [1:30:57] witnessed [1:30:58] personally [1:30:59] officers [1:31:00] retired [1:31:01] officers [1:31:02] who [1:31:04] because of [1:31:05] the detachment [1:31:06] from military [1:31:07] life [1:31:08] have lost [1:31:09] their [1:31:11] social circle [1:31:12] and a lot of them [1:31:14] who have been [1:31:15] afflicted by [1:31:16] age-related [1:31:18] diseases [1:31:19] withdraw [1:31:20] and become [1:31:24] you know [1:31:26] are affected [1:31:27] and afflicted [1:31:28] with self-pity [1:31:30] loss of [1:31:31] morale [1:31:32] so they also need [1:31:33] their [1:31:34] social [1:31:35] environment [1:31:36] to be able [1:31:39] to mingle [1:31:40] and to keep [1:31:41] their mental [1:31:42] wellness [1:31:43] intact [1:31:44] so this [1:31:45] in connection [1:31:46] with the hospices [1:31:47] so that [1:31:48] we can also [1:31:49] support them [1:31:50] that [1:31:53] in the [1:31:54] most vulnerable [1:31:55] period of their [1:31:56] time [1:31:57] when they need us [1:31:58] most [1:32:00] we can preserve [1:32:00] their dignity [1:32:02] just like they do in Korea [1:32:03] for that matter [1:32:08] next slide [1:32:09] so for veterans [1:32:13] your honor [1:32:14] the accomplishment [1:32:17] as you see [1:32:18] is 9,000 patients [1:32:19] treated [1:32:20] but this is only 6% [1:32:21] because it is [1:32:22] in Manila [1:32:23] and the [1:32:25] design now [1:32:26] there is a veterans [1:32:27] health service [1:32:28] that's being [1:32:29] before it was [1:32:32] solely the veterans [1:32:33] memorial [1:32:34] medical center [1:32:35] as the [1:32:36] sole [1:32:37] sole focus [1:32:38] of medical [1:32:40] care for veterans [1:32:41] that situation [1:32:42] is untenable [1:32:43] because [1:32:44] rather than [1:32:45] prioritizing [1:32:48] veterans [1:32:49] wellness [1:32:50] you prioritize [1:32:51] a physical [1:32:52] a hospital [1:32:53] so it does [1:32:54] not serve [1:32:55] the purpose [1:32:56] your honor [1:32:57] so we [1:32:58] we refocus [1:32:59] the programs [1:33:00] and plans [1:33:01] to have [1:33:04] the welfare [1:33:05] of the veteran [1:33:06] first [1:33:07] and how we can [1:33:08] service that need [1:33:09] rather than [1:33:10] to maintain [1:33:11] a hospital [1:33:12] alone [1:33:13] which was the focus [1:33:14] of the VMMC [1:33:15] so these targets [1:33:17] we hope [1:33:18] to increase [1:33:19] with the number [1:33:20] your honor [1:33:21] of outpatients [1:33:22] treated [1:33:23] and with the [1:33:25] establishment [1:33:26] of new [1:33:31] clinics [1:33:32] where we can [1:33:33] diagnose [1:33:34] and treat [1:33:35] our veterans [1:33:36] throughout the [1:33:37] Philippines [1:33:38] there are [1:33:39] three [1:33:40] already in [1:33:41] existence now [1:33:42] so that [1:33:45] they do not [1:33:46] need to come [1:33:47] to Manila [1:33:48] anymore [1:33:50] or to go to [1:33:51] private medical [1:33:52] centers of which [1:33:53] the government [1:33:54] has to reimburse [1:33:55] members [1:33:56] if the [1:33:57] public hospitals [1:33:58] cannot take care [1:33:59] of them [1:34:00] we have three [1:34:01] and the reason [1:34:02] for three [1:34:03] alone your honor [1:34:04] it is hard [1:34:05] to find people [1:34:06] to staff [1:34:07] the centers [1:34:09] so we continue [1:34:10] the recruitment [1:34:11] drive [1:34:12] and to establish [1:34:13] them [1:34:14] where we can [1:34:17] in collocated [1:34:18] with our [1:34:19] station hospitals [1:34:20] and [1:34:21] we want to build [1:34:23] an ecosystem [1:34:24] on that also [1:34:25] for the hospice [1:34:27] somewhere else [1:34:28] and then the [1:34:29] social homes [1:34:30] for our veterans [1:34:33] 85% [1:34:34] 83% [1:34:35] are the target [1:34:36] your honor [1:34:37] of discharges [1:34:38] once again [1:34:39] your honor [1:34:40] I have to point out [1:34:41] that the last time [1:34:42] I reviewed [1:34:43] the average [1:34:44] hospitalization [1:34:45] was 16 days [1:34:46] because of [1:34:48] the fact [1:34:49] that [1:34:50] there are [1:34:51] extended pay [1:34:52] stay [1:34:53] extended stay [1:34:54] veterans [1:34:55] who do not [1:34:56] have anywhere [1:34:57] else to go [1:35:02] financial accomplishments [1:35:05] next slide [1:35:12] next slide [1:35:20] for 2025 [1:35:21] your honor [1:35:22] the appropriations [1:35:23] were 448 [1:35:24] allotment [1:35:26] was 443 [1:35:27] 414 [1:35:29] was obligated [1:35:31] 330 [1:35:32] were disbursed [1:35:33] 29 [1:35:37] was [1:35:38] unobligated [1:35:39] and 83 [1:35:40] unpaid [1:35:43] so [1:35:44] obligation [1:35:45] versus allotment [1:35:46] was 93% [1:35:47] 75% [1:35:48] and payment [1:35:49] and payment [1:35:50] versus [1:35:51] obligation [1:35:52] was 79% [1:35:56] next slide [1:35:59] for 2026 [1:36:00] the first [1:36:02] semester [1:36:03] semester [1:36:04] your honor [1:36:05] the appropriation [1:36:07] for [1:36:08] for this year [1:36:09] was 489 [1:36:10] allotment [1:36:11] 406 [1:36:12] obligated [1:36:13] obligated [1:36:14] obligated [1:36:15] is 191 [1:36:16] billion [1:36:18] disbursements [1:36:19] 163 [1:36:20] for the first [1:36:21] semester [1:36:22] unobligated [1:36:23] was 214 [1:36:24] and [1:36:25] unpaid [1:36:26] was [1:36:27] 28 [1:36:28] so [1:36:30] obligation [1:36:31] versus allotment [1:36:32] 47% [1:36:33] for the first [1:36:34] semester [1:36:35] and disbursement [1:36:36] versus obligation [1:36:37] around 85% [1:36:39] from last year [1:36:40] 70 [1:36:43] next slide please [1:36:48] for comparatives [1:36:49] your honor [1:36:51] which is the source [1:36:52] also of the year [1:36:53] on year [1:36:54] which probably [1:36:55] does not reflect [1:36:57] current needs [1:36:58] what is important [1:37:02] here is [1:37:03] we will see [1:37:04] your honor [1:37:05] that there is [1:37:06] an increasing [1:37:07] trend [1:37:08] of [1:37:09] both [1:37:10] obligations [1:37:11] and [1:37:13] allotments [1:37:15] our challenge [1:37:17] during the start [1:37:18] your honor [1:37:19] was [1:37:22] the low [1:37:23] approved budget [1:37:24] ceilings [1:37:25] for [1:37:29] items [1:37:32] that we needed [1:37:33] to acquire [1:37:34] and with the [1:37:35] inflation [1:37:36] catching up [1:37:37] particularly for [1:37:38] defense [1:37:41] material [1:37:42] we could not [1:37:43] obligate [1:37:44] the amounts [1:37:46] and it would have [1:37:47] been a waste of [1:37:48] taxpayers money [1:37:49] to do so [1:37:50] and [1:37:51] I [1:37:52] discourage [1:37:53] the practice [1:37:54] of rushing [1:37:55] to obligate [1:37:56] just [1:37:57] to fill [1:37:58] to [1:37:59] satisfy [1:38:00] the 100% [1:38:01] obligation rate. [1:38:02] I felt that [1:38:03] you know [1:38:04] let's [1:38:06] let's [1:38:07] just give a good [1:38:08] reason why [1:38:09] it was not obligated [1:38:11] and we [1:38:12] refuse to obligate [1:38:13] I particularly [1:38:14] refuse to [1:38:15] obligate [1:38:16] if we're just going to [1:38:17] end up [1:38:18] with something [1:38:19] that is [1:38:22] something [1:38:23] not [1:38:24] optimal [1:38:26] for us [1:38:27] for us [1:38:28] but it [1:38:30] has [1:38:31] particularly [1:38:34] for the [1:38:35] 2024 [1:38:36] and 2025 [1:38:37] when there have been [1:38:39] very major changes [1:38:41] in the nature [1:38:42] of [1:38:43] the equipment [1:38:45] that we need [1:38:47] and we had [1:38:48] significant [1:38:50] lessons learned [1:38:51] for the supportability [1:38:54] supportability [1:38:55] and integration [1:38:56] and interoperability [1:38:58] of platforms [1:39:00] so we [1:39:01] required [1:39:02] full [1:39:03] sustainment [1:39:04] to come [1:39:07] with acquisitions [1:39:08] and [1:39:09] most importantly [1:39:10] guaranteed [1:39:11] supply chains [1:39:12] and [1:39:13] guaranteed [1:39:14] interoperability [1:39:15] and upgrades [1:39:17] plus [1:39:19] we required [1:39:20] a reserve [1:39:21] of at least [1:39:22] 30 days [1:39:23] of munitions [1:39:24] with every [1:39:25] platform [1:39:26] that we [1:39:28] notionally [1:39:29] will acquire [1:39:32] we also [1:39:33] had the [1:39:34] experience [1:39:35] or honor [1:39:36] of purchasing [1:39:37] bear [1:39:38] platforms [1:39:39] and the [1:39:40] weaponry [1:39:41] to follow [1:39:42] I do not think [1:39:43] that is a proper [1:39:44] way to go [1:39:45] which was why [1:39:46] we stopped [1:39:47] the practice [1:39:48] however [1:39:49] this results [1:39:50] in increased [1:39:51] acquisition costs [1:39:52] beforehand [1:39:54] because [1:39:56] as we know [1:39:57] prices just [1:39:58] keep on [1:39:59] going up [1:40:00] so you might as well [1:40:01] lock it in [1:40:02] at one time [1:40:03] and get the whole [1:40:05] package [1:40:06] guaranteed [1:40:07] this [1:40:10] also [1:40:11] has [1:40:12] resulted [1:40:13] in [1:40:14] the ABCs [1:40:15] being [1:40:16] being [1:40:17] too low [1:40:19] for us [1:40:20] so [1:40:21] it is a [1:40:22] continuing [1:40:23] challenge [1:40:24] with the [1:40:25] with the [1:40:27] greater costs [1:40:28] of [1:40:29] the essential [1:40:30] platforms [1:40:31] we need [1:40:32] of course we [1:40:33] have also been [1:40:34] investing in [1:40:35] mitigation [1:40:36] hybrids [1:40:37] and you know [1:40:38] evolutionary [1:40:39] platforms [1:40:40] however [1:40:41] this is [1:40:42] part and [1:40:43] parcel [1:40:44] of a [1:40:45] mix [1:40:47] that you will [1:40:48] need to have [1:40:49] once again I [1:40:50] reiterate our [1:40:51] gaps are [1:40:52] infrastructure [1:40:54] basic [1:40:55] platforms [1:40:56] and [1:40:58] logistics [1:41:01] facilities [1:41:02] and [1:41:03] support [1:41:04] facilities [1:41:05] that we will need [1:41:06] on a resilient [1:41:07] basis [1:41:09] next slide [1:41:11] issues and concerns [1:41:13] your honor [1:41:14] next slide [1:41:16] the [1:41:20] 21 line items [1:41:22] which we [1:41:23] submitted just [1:41:24] to complete [1:41:25] programs [1:41:26] only three have [1:41:27] been approved [1:41:28] but this is [1:41:32] reflective [1:41:33] your honor [1:41:34] of the [1:41:39] consideration [1:41:43] of infrastructure [1:41:44] that we need [1:41:45] to [1:41:47] underscore [1:41:48] given the fact [1:41:49] that [1:41:50] we were deprived [1:41:53] of infrastructure [1:41:55] that were designed [1:41:59] really for [1:42:00] military [1:42:01] use [1:42:03] that have been [1:42:04] converted [1:42:12] so we [1:42:13] there [1:42:14] so the unfunded [1:42:15] your honor [1:42:16] comes out to [1:42:18] about 87 [1:42:19] but I do not know [1:42:20] after the [1:42:21] house your honor [1:42:22] would have submitted [1:42:23] to the senate [1:42:24] their version [1:42:25] how much of this [1:42:26] would have been [1:42:27] answered for [1:42:28] next slide [1:42:34] for the modernization [1:42:35] your honor [1:42:36] minimum of 70 [1:42:41] just for [1:42:42] horizon [1:42:43] re-horizon [1:42:44] 3 [1:42:45] but we [1:42:46] we should see [1:42:47] there is still [1:42:48] horizon 2 [1:42:49] projects that [1:42:50] need to be completed [1:42:51] but we also scrapped [1:42:54] repurposed [1:42:55] some of them [1:42:56] because a lot of [1:42:57] horizon 2 [1:42:58] projects are already [1:42:59] obsolete [1:43:00] but this does not [1:43:02] include [1:43:03] we have not yet [1:43:04] come out [1:43:07] your honor [1:43:08] with the [1:43:09] the [1:43:10] recalibration [1:43:11] of horizon 3 [1:43:12] which we need [1:43:13] to submit [1:43:14] to the senate [1:43:15] for the president [1:43:16] for approval [1:43:17] the [1:43:26] the [1:43:27] program of [1:43:28] 50 billion [1:43:29] your honor [1:43:30] if we [1:43:31] obligate [1:43:37] and contract [1:43:38] out all of this [1:43:39] we will need [1:43:40] 80 billion [1:43:41] we need 20 billion [1:43:42] more [1:43:43] from the [1:43:45] current [1:43:46] 50 billion [1:43:47] that is being proposed [1:43:48] just to pay for the [1:43:49] continuing [1:43:50] multi-year continuing [1:43:54] obligational authority [1:43:57] which is why also [1:43:58] our obligation [1:43:59] rate is low [1:44:00] because [1:44:01] if we [1:44:02] obligate [1:44:03] for that year [1:44:04] our payments [1:44:06] would balloon [1:44:07] and it will be beyond [1:44:10] the modernization [1:44:11] with the indulgence [1:44:42] of the committee [1:44:43] I will move to the [1:44:44] next slide [1:44:45] your honors [1:44:57] this one your honor [1:44:58] we already included it [1:44:59] last year [1:45:00] in [1:45:01] in [1:45:02] in the absence [1:45:04] of [1:45:05] the [1:45:06] amendatory [1:45:07] law for the [1:45:08] presidential decree [1:45:09] your honor [1:45:10] limiting [1:45:11] foreign borrowings [1:45:12] for defense [1:45:13] to [1:45:14] 300 million [1:45:16] US dollars [1:45:17] we have a [1:45:20] bill already [1:45:21] pending [1:45:22] your honor [1:45:23] to [1:45:24] take that limitation [1:45:25] out [1:45:28] it allows [1:45:29] contracting [1:45:32] for [1:45:33] foreign loans [1:45:34] grants [1:45:35] and other credit [1:45:36] facilities [1:45:37] however under the [1:45:38] control of the [1:45:39] secretary of [1:45:40] finance [1:45:41] your honor [1:45:42] we fully understand [1:45:43] that [1:45:44] this has to be subject [1:45:46] to fiscal space [1:45:47] limitations [1:45:48] and [1:45:50] we [1:45:51] we [1:45:52] we [1:45:53] fully accept [1:45:54] the [1:45:55] seniority [1:45:56] and the [1:45:57] primacy of the [1:45:58] secretary of finance [1:45:59] in these matters [1:46:01] so it has [1:46:02] been enacted [1:46:03] last year [1:46:04] we did not [1:46:05] avail of it [1:46:06] your honor [1:46:07] because of the [1:46:08] mechanism with the [1:46:09] secretary of finance [1:46:13] so we [1:46:14] we appeal [1:46:15] for the same [1:46:16] flexibility [1:46:17] to be [1:46:18] enacted [1:46:19] this year [1:46:20] in anticipation [1:46:23] also [1:46:24] your honor [1:46:25] of the [1:46:26] repeal of the [1:46:27] 300 [1:46:28] million dollar [1:46:29] limitation [1:46:30] it is a [1:46:34] continuing [1:46:35] provision [1:46:36] your honor [1:46:38] and [1:46:39] we have [1:46:40] not availed [1:46:41] of it [1:46:42] because [1:46:43] knowing [1:46:44] fiscal space [1:46:45] limitations [1:46:46] next slide [1:46:50] please [1:46:51] this is the [1:46:52] last slide [1:46:53] your honor [1:46:54] be open to [1:46:55] questions [1:46:56] from your [1:46:57] honors [1:46:58] thank you [1:47:02] secretary [1:47:03] teodoro [1:47:04] i will ask my [1:47:05] colleagues [1:47:06] to go [1:47:07] propound questions [1:47:08] first but before [1:47:09] them [1:47:10] may [1:47:11] i will [1:47:12] have [1:47:13] a [1:47:14] deadline [1:47:15] i will [1:47:16] see [1:47:17] i will [1:47:18] have [1:47:19] present [1:47:20] the [1:47:21] statement [1:47:22] of the [1:47:23] DFA [1:47:24] secretary [1:47:25] the department [1:47:26] foreign affairs [1:47:27] summoned [1:47:28] chinese [1:47:29] ambassador [1:47:30] jing kwan [1:47:31] on october [1:47:32] 19 to convey [1:47:33] the philippine [1:47:34] serious concern [1:47:35] and strong objection [1:47:36] to his october 15 [1:47:37] public statement [1:47:38] which conveyed [1:47:39] the threat [1:47:40] to use of force [1:47:41] so [1:47:42] both of us [1:47:44] are [1:47:45] subject [1:47:46] being attacked [1:47:47] by [1:47:48] i don't [1:47:49] know [1:47:50] but [1:47:53] we are both [1:47:55] we just want to [1:47:56] make [1:47:57] we just want to make it clear [1:47:58] but that both of us [1:47:59] me and myself [1:48:00] and my secretary [1:48:01] is a good [1:48:02] we both studied [1:48:03] in savior school [1:48:04] both studied chinese [1:48:05] and i'm sure that he [1:48:07] we love our chinese [1:48:08] schoolmates [1:48:09] and classmates [1:48:10] so [1:48:11] it is not the chinese people [1:48:12] just to be [1:48:13] straight [1:48:14] at [1:48:15] the [1:48:16] to set the record [1:48:17] straight [1:48:18] it's that [1:48:19] expansionist [1:48:20] um [1:48:21] um [1:48:22] uh [1:48:24] uh [1:48:25] of uh [1:48:26] c jingping's government [1:48:27] so probably um [1:48:28] just quickly [1:48:29] secretary [1:48:30] how does the dnd [1:48:31] treat this kind of [1:48:32] public statement [1:48:33] that [1:48:34] convey a threat of [1:48:35] use of force [1:48:36] from [1:48:37] the chinese ambassador [1:48:38] your honor [1:48:41] uh [1:48:42] consistent with our earlier [1:48:43] pronouncements [1:48:44] uh [1:48:45] number one [1:48:46] we refute [1:48:47] all allegations [1:48:48] made by the ambassador [1:48:49] that we are [1:48:50] troublemakers [1:48:51] and are provoking [1:48:52] uh [1:48:53] uh [1:48:54] we reiterate [1:48:55] ulit namin [1:48:56] your honor [1:48:57] ang aming [1:48:58] uh [1:48:59] pag [1:49:00] uh [1:49:01] pag [1:49:02] uh [1:49:03] pag [1:49:04] taguyod [1:49:05] sa unclosed [1:49:06] and the uncharter [1:49:07] uh [1:49:08] pangalawa [1:49:10] uh [1:49:11] pinahihwating na po natin [1:49:13] ang ating [1:49:14] uh [1:49:16] pag object [1:49:17] sa kanyang pananalita [1:49:18] kasi hindi lang naman [1:49:20] isang beses [1:49:21] sinabi niyang [1:49:22] you lose [1:49:23] yung pinoportray po [1:49:24] ngayon [1:49:25] ay [1:49:26] yung [1:49:27] uh [1:49:28] we can use force [1:49:29] if we want [1:49:30] but we may win [1:49:31] easily [1:49:32] meron pong isa [1:49:33] na [1:49:34] sinabi siya na [1:49:35] okay [1:49:36] you cut [1:49:37] military communications [1:49:39] but you lose [1:49:41] uh [1:49:42] so [1:49:43] ibig po sabihin [1:49:44] eh [1:49:45] uh [1:49:46] may pagbabantana po doon [1:49:48] yung beses po niyang [1:49:50] uh [1:49:52] sinabi po yan eh [1:49:53] ngayon po [1:49:54] ipinatawag na po siya ng DFA [1:49:56] uh [1:49:57] we [1:49:58] have to wait [1:49:59] your honor [1:50:00] for uh [1:50:01] developments [1:50:02] uh [1:50:03] which uh [1:50:04] of course [1:50:05] uh [1:50:06] the [1:50:08] president [1:50:09] or the DFA [1:50:10] will [1:50:11] message [1:50:12] to the public [1:50:13] at an appropriate time [1:50:14] pero [1:50:15] maliwanag po [1:50:16] ang ating pagtutol [1:50:18] hindi lang dito sa statement niya [1:50:20] kung hindi [1:50:21] the more important thing [1:50:23] yung kanilang false narrative [1:50:24] na [1:50:25] may nine dash line [1:50:27] may [1:50:28] ah [1:50:29] meron silang [1:50:30] ah [1:50:31] jurisdiction [1:50:32] ah [1:50:33] pangatlo [1:50:34] yung kanila pong [1:50:35] latest narrative [1:50:36] na ang batanes [1:50:37] eh [1:50:38] part ng China [1:50:39] kasi [1:50:40] meron na daw silang karapatan [1:50:41] na mag operate sa [1:50:42] ah [1:50:43] mga karagatan [1:50:45] na [1:50:46] nagpapalibot sa [1:50:47] batanes [1:50:48] yan po ay [1:50:49] matinding [1:50:50] tinututulan [1:50:51] at aming pong [1:50:52] ah [1:50:53] sinusubukan na [1:50:54] i-deter yung [1:50:55] ganyang [1:50:56] klaseng mga behavior [1:50:57] salamat po [1:50:58] thank you ah [1:51:00] ah [1:51:01] secretary [1:51:02] ano much has been said [1:51:03] over the weekend [1:51:04] no and I think this is an opportunity to clarify where we stand [1:51:07] and we believe in diplomacy [1:51:09] but we also believe in developing good relations with our neighbors [1:51:12] pero siyempre [1:51:13] dapat may respeto sa isa isa isa no medyo hindi na maganda ang kanyang ah [1:51:20] ah [1:51:21] kanyang ah [1:51:23] mga aksyon at mga pananalita no na [1:51:25] na [1:51:26] ano na eh may halong ano na to [1:51:28] pananakot no [1:51:29] ah [1:51:30] very hostile and very [1:51:32] undiplomatic no and ah [1:51:34] we would like to support our ah [1:51:37] secretary also no [1:51:38] yung [1:51:39] your stand also [1:51:40] when you were in ah [1:51:41] singapore [1:51:42] i'd like to commend you for that [1:51:43] for being firm [1:51:44] and ah [1:51:45] stand fast in ah [1:51:46] in saying that ah [1:51:47] we will protect [1:51:48] and we are just protecting our sovereignty and our [1:51:51] territory integrity [1:51:52] so [1:51:53] thank you secretary [1:51:54] the door for that um [1:51:56] probably our center [1:51:57] our center president [1:51:58] would like to ask questions already [1:52:00] ah [1:52:02] mr president i i was ah [1:52:03] watching the hearing [1:52:05] ah [1:52:06] i was waiting actually in my room [1:52:08] and i saw senator laxon was waiting here [1:52:11] way way advanced than both of us [1:52:13] so i will yield to ah [1:52:15] senator laxon who came in ah [1:52:17] first before we ah [1:52:19] both came in ah [1:52:20] yes ah [1:52:21] senator laxon ah [1:52:22] will now ah [1:52:23] propound ah his questions and concerns [1:52:24] yeah [1:52:25] thank you mr president and mr chairman [1:52:27] yung isang item dito yung unused appropriations of course when we speak of unused appropriations [1:52:34] it is the total of unobligated at saka unreleased ano for 2024 ah pag pinagsama yung dalawa nasa mga 32 [1:52:45] this is 32 billion 32 million [1:52:50] yeah [1:52:51] 32 billion no [1:52:53] 2024 [1:52:54] wala na ito kasi is under the continuing appropriations two years lang eh [1:52:58] in 2025 [1:52:59] nasa mga 31 billion [1:53:01] again [1:53:03] unobligated and unreleased [1:53:05] so [1:53:06] what [1:53:07] ah [1:53:08] would account for [1:53:09] the [1:53:11] ah [1:53:12] i think [1:53:13] this is huge ah [1:53:14] ah [1:53:15] numbers [1:53:16] 31 billion [1:53:17] use appropriations [1:53:18] for 2025 [1:53:19] ah [1:53:20] what would account sir are the ah [1:53:22] ah [1:53:23] inflationary pressures dun sa mga kinakailangan po natin i-acquire [1:53:28] at dun naman po sa limited na capital outlay dahil po sa costings ng [1:53:36] nang [1:53:37] materials [1:53:39] umaakyat po yung halaga [1:53:41] kaya po kung ah [1:53:43] ah [1:53:44] pangantlo po [1:53:45] yung pag [1:53:46] ginamit [1:53:47] yung ibang items po dun sa [1:53:50] unobligated [1:53:51] pag in obligate po [1:53:53] tataas pa po yung mica natin sa amount ng modernization [1:53:57] so [1:53:59] yung fiscal constraints po [1:54:00] and yung ah [1:54:03] ah [1:54:04] pag costing po [1:54:05] ng mga horizons [1:54:07] gumagapang po yung presyo halos araw araw [1:54:10] so [1:54:12] pag ah [1:54:13] may nakit [1:54:14] unang una po [1:54:15] baka dun po sa approved bid ceiling kasi eh [1:54:17] doon po sa mga reglamento natin ah [1:54:22] hindi na po ah [1:54:23] ayon [1:54:24] sa presyo na gusto natin ano [1:54:28] ah [1:54:30] pangalawa po [1:54:31] yung ah [1:54:33] ating pong ah [1:54:34] patakaran [1:54:37] na kailangan po yung platforms are fully weaponized [1:54:40] and provided with reserves [1:54:42] kasi yung po ang nakikita [1:54:44] actually [1:54:45] very very conservative [1:54:46] yung reserves natin [1:54:47] na 30 days [1:54:48] na munitions [1:54:49] per [1:54:50] platform [1:54:51] pero alam po natin [1:54:53] na humahaba po yung panahon [1:54:55] na kailangan po natin na reserva [1:54:57] yun po ang primary [1:54:59] ah [1:55:00] reason po [1:55:01] from 2024 [1:55:02] because i remember [1:55:04] yeah [1:55:05] at the end of 2023 po [1:55:06] dun po masok ang re-horizon 3 [1:55:08] kasi nagre-revisa po kami ng kinakailangan [1:55:11] kaya nagbago po ito [1:55:12] so the next ah [1:55:15] and the next relevant question would be [1:55:17] how do we resolve this ah [1:55:19] issue kasi year in year out [1:55:21] ito lagi yung nagiging ah [1:55:23] problem [1:55:24] we're trying to catch up [1:55:25] what we [1:55:26] it seems that we are not catching up [1:55:27] sir there should really be a determination [1:55:31] to have continuous ah [1:55:33] defense spending ah [1:55:35] increases [1:55:36] which will impact the total fiscal picture of the government [1:55:42] ah [1:55:43] give an example your honor [1:55:45] ah [1:55:46] ang Singapore from day one [1:55:48] ng panganak niya [1:55:49] in 1965 [1:55:51] or 66 [1:55:52] 6% ng GDP [1:55:54] ang [1:55:55] at the minimum [1:55:56] ang ginagastos po nila [1:55:58] tayo po ay [1:55:59] ah [1:56:00] sa core ah [1:56:01] defense spending [1:56:02] wala pa po sa dos [1:56:03] nasasakal na po yung budget natin [1:56:06] ah [1:56:07] I think [1:56:08] ang [1:56:09] it should be a determination [1:56:13] your honor [1:56:14] na [1:56:15] we raise the [1:56:16] amount [1:56:17] through financing [1:56:18] because [1:56:19] if we make a determination [1:56:20] nagagastusin lang talaga ito [1:56:22] on the future generations [1:56:24] mabuti pa [1:56:25] ah [1:56:26] umpisahan na natin ng tama [1:56:29] sa ngayon [1:56:30] kesa sa pamahal ng pamahal [1:56:32] o pasikip ng pasikip ito [1:56:33] so [1:56:34] ah [1:56:35] I think [1:56:36] it is a macro economic [1:56:37] ah [1:56:38] problem [1:56:39] that has to be solved [1:56:40] macro economically [1:56:41] pangalawa naman po ah [1:56:43] ah [1:56:44] ah [1:56:45] nile leverage din po natin [1:56:46] ang alliances natin [1:56:47] katulad ng official security [1:56:49] assistance ng japan na 200 [1:56:51] million kada taon na us dollars [1:56:53] at fmf ah [1:56:55] financing sa us [1:56:56] at sa iba pa pong ah [1:56:59] partners sa australia at sa canada in the future [1:57:02] pero hindi ito ah [1:57:05] ah [1:57:06] substitute ho talaga [1:57:07] and I I see your point your honor [1:57:09] ah [1:57:10] I think [1:57:12] it will [1:57:13] go beyond [1:57:14] my mandate [1:57:15] ah [1:57:17] to view [1:57:18] ah [1:57:19] a solution [1:57:20] to this problem [1:57:21] the ah [1:57:22] acquisition [1:57:23] the avenues [1:57:25] of ah [1:57:27] getting the funds [1:57:29] we can probably [1:57:30] remediate [1:57:31] but the repayment [1:57:32] is the [1:57:33] ah [1:57:34] problem [1:57:35] which [1:57:36] transcends [1:57:37] the D&D [1:57:39] ah [1:57:41] we we are really [1:57:42] reflecting [1:57:43] the realities [1:57:44] of [1:57:45] ah [1:57:46] the costs [1:57:48] that we need [1:57:49] at the end of the day [1:57:50] it's a political decision [1:57:51] whether you fund this [1:57:53] versus [1:57:54] something else [1:57:55] because it's really a zero sum game [1:57:57] ah [1:57:58] there's no denying it [1:58:00] ah [1:58:03] ah [1:58:04] as best as I can answer [1:58:06] ah [1:58:07] our vice chairperson [1:58:09] thank you [1:58:10] Mr. Chairman [1:58:11] before I move on to another topic [1:58:12] I'd like to find out from COA [1:58:14] are there major [1:58:15] ah [1:58:16] procurement issues [1:58:17] that ah [1:58:18] should merit our attention [1:58:20] regarding the D&D [1:58:27] ah [1:58:28] good afternoon sir [1:58:29] your honor [1:58:30] ah [1:58:31] for the D&D OSEC sir [1:58:32] ah [1:58:33] in which I am the supervising [1:58:34] not just the OSEC [1:58:35] the ah [1:58:36] ah [1:58:37] may I call on the other supervising auditor sir [1:58:39] yeah [1:58:41] please [1:58:42] for the [1:58:43] arm forces of the Philippines [1:58:44] ah [1:58:45] ah [1:58:46] general head [1:58:47] corp [1:58:49] Mika [1:58:54] concern [1:58:55] so many years ago [1:58:57] same ah [1:58:58] budget deliberation [1:58:59] sa D&D [1:59:00] meron kami nakitang COA [1:59:01] ah [1:59:03] ah [1:59:04] issue no [1:59:05] na 10 years na [1:59:06] hindi pa na deliver [1:59:07] laging ah [1:59:08] ah [1:59:09] in transit [1:59:10] so [1:59:11] ang tanong ni senator and really non [1:59:13] ang tagal na mamag deliver yan [1:59:14] 10 years pa [1:59:15] every year [1:59:16] recurring yung ah [1:59:17] issue [1:59:18] being raised by COA [1:59:19] so hindi na na deliver sa inducer [1:59:21] so [1:59:22] these are the ah [1:59:23] issues that I [1:59:24] I [1:59:25] I'm talking about ano [1:59:26] kung meron mga [1:59:27] parallel or similar issues [1:59:30] na [1:59:31] dapat i-attend [1:59:32] or maybe [1:59:33] pwede nang burahin sa libro nyo [1:59:34] kasi 10 years [1:59:35] hindi pa dumarating eh [1:59:36] good afternoon everyone [1:59:41] your honor [1:59:42] um [1:59:43] regarding po dun sa [1:59:44] deliveries [1:59:45] um [1:59:46] wala naman po tayo yung question about po dun sa actual delivery [1:59:49] but [1:59:50] more on documentation [1:59:51] and [1:59:52] um [1:59:53] ongoing naman po [1:59:54] yung retrieval ng mga documents [1:59:56] yun nga po nandung po tayo sa 10 years [1:59:59] but [2:00:00] however [2:00:01] yung ongoing coordination naman po is currently conducted [2:00:05] any other specific issues that you can share with us with the community [2:00:08] ah [2:00:10] dan po [2:00:11] so totoo yan ah [2:00:12] yes po [2:00:13] okay [2:00:14] thank you [2:00:17] do sa malign ah [2:00:18] ah [2:00:19] foreign influence and ah [2:00:20] ah [2:00:21] interference ano [2:00:22] yung security sector meron ba tayong ah [2:00:25] data and substantiated ah reports ah [2:00:29] of ah [2:00:30] actual malign interference by foreign jurisdictions against our country [2:00:35] considering na hindi pa natin ipasa yung amendment ng ah [2:00:39] decades old anti-spionage law [2:00:42] so how do we ah [2:00:44] confront this ah [2:00:45] kind of a situation [2:00:46] ah [2:00:48] sir we can only confront it now [2:00:50] if there is a predicate crime that has been ah [2:00:53] has been ah [2:00:55] committed [2:00:56] or is in the process of being committed [2:00:59] and ah [2:01:00] what we have seen [2:01:03] so far is on the economic sabotage ah [2:01:06] ah aspect like ah [2:01:08] money laundering [2:01:09] human trafficking aspect also ah [2:01:12] ah [2:01:13] your honor [2:01:15] and ah [2:01:16] ah [2:01:17] environmental standards ah [2:01:19] ah [2:01:20] plus ah [2:01:21] ah [2:01:23] fake [2:01:25] citizenships [2:01:26] however on the activities [2:01:28] actually sir that ah [2:01:30] ah [2:01:31] ah [2:01:34] be malign [2:01:35] we have [2:01:36] information [2:01:37] however ah [2:01:39] ah [2:01:40] ah [2:01:41] substantiated information is quite difficult given the constraints that we have [2:01:45] ah [2:01:46] ah [2:01:47] particularly for ah [2:01:48] ah [2:01:49] the ah [2:01:52] ah [2:01:53] connections between [2:01:54] influence [2:01:55] influencer [2:01:56] and influence [2:01:57] political influence [2:01:59] ah no [2:02:00] political sir and others [2:02:01] that's part of the malign interference eh [2:02:03] yes sir [2:02:04] yung covert operations [2:02:05] ah [2:02:06] na [2:02:07] influencing ah [2:02:08] you know [2:02:09] ah [2:02:10] ah [2:02:11] ah [2:02:12] ah [2:02:13] ah [2:02:14] through social media and all [2:02:15] now what has happened to the ah [2:02:17] ah [2:02:18] ah [2:02:19] ah [2:02:20] ah [2:02:21] ah [2:02:23] by ah [2:02:24] ah [2:02:25] ah [2:02:26] ah [2:02:27] ah [2:02:28] ah [2:02:29] ah [2:02:30] ah [2:02:31] ah [2:02:32] ah [2:02:33] ah [2:02:34] ah [2:02:35] ah [2:02:36] ah [2:02:37] ah [2:02:38] ah [2:02:40] ah [2:02:41] ah [2:02:42] ah [2:02:43] ah [2:02:44] ah [2:02:45] ah [2:02:46] ah [2:02:47] ah [2:02:48] ah [2:02:49] ah [2:02:50] ah [2:02:51] ah [2:02:52] the recovery but the important thing is that the hub was closed down and about more or less 100 [2:03:05] were taken by the bi so the the the they are awaiting deportation proceedings i think [2:03:17] deportation proceedings now are the most effective way of dealing with [2:03:22] uh the persons apprehended unless they are principals uh because if they are subjected [2:03:32] to judicial processes uh somehow sometimes they're uh able to continue the activities [2:03:44] it's better that they're they are gone unless they are principals for example your honor alice gu which [2:03:51] was cut and dried case uh insofar as we're concerned it had nothing to do with the malign interference or [2:03:58] espionage operations we are still in the process sir of uh hindi pa na-validate hindi pa so far pogo [2:04:04] yung nakita niyong so far pogo sir pero ang location niya nakakapagtaka katulad nato sa parang yung pogo [2:04:13] na na-disrupt sa likod ng dfa noong 2003 uh 2023 or 2024 uh may analysis na doon sa equipment [2:04:23] surveillance equipment that uh were confiscated that's the last week lang yata sir no no recent i think [2:04:32] this was uh the other day one or two years ago i was referring to the uh arrests made by i think nbi [2:04:40] iata or pnp uh i'm not sure about that your honor i think close coordination should be made with the [2:04:47] armed forces intelligence because yes your honor this should this could involve national security [2:04:53] however your honor one constraint assuming that uh there is sometimes what we we have encountered [2:05:02] in cases that uh we want to follow up is that the to disrupt to to exploit a a computer or a device [2:05:15] would need a data warrant another uh another legal proceeding so i i will find out your honor uh about [2:05:24] the status kasi marami na po eh ang interest ring po namin ay tumigil yung operation katulad po nung [2:05:32] ibang mga na-disrupt natin hindi naman lang yung fake na or substandard na ginagawa [2:05:39] kung hindi may pirho ito eh na labas pasok ang matigil lang po yun uh initially [2:05:48] ay one half of the problem solved kasi hindi na pwedeng gamitin lugar na labas pasok ang ang [2:05:56] kung sino now the devices your honor uh we i i will find out your honor uh those arrests [2:06:04] that i was referring to nangyari last year eh near comelec and in the vicinity of campaginaldo and that [2:06:12] should tell us a lot ano kasi kung campaginaldo and these are uh supposed to be foreign agents then [2:06:19] that should be a major concern threat to national security and find out your honor yeah please and uh [2:06:26] uh please do something about it because baka mamaya uh may mga sleeper may mga reports din tayo may [2:06:32] mga sleeper na di ba yes sir in the country and this could be tied uh to the uh reports of [2:06:40] of late registration of birth yes sir ang last count yata nasa mga three thousand ba o five [2:06:46] thousand sir i'm not sure of the amount identified yeah yes yes sir identified the personalities [2:06:54] na late registration i don't know what's the status now kung ano na ginawa ng uh [2:07:00] psa tinanong rin sa psa ito during the budget deliberation and they're trying to uh find some [2:07:06] remedial uh measures but you know masyado malalim na pagka ganyang marami ganyang karami malalim [2:07:12] na po talaga sir at yung iba second generation na eh ah ang pasok dito nung magulang ay talagang ano [2:07:20] yung anak naman ang pinag late registration ah di umano si alisgo ay gano'n din pero ah meron [2:07:30] di nagsasabi na hindi nga ganon ang nangyari sa kanya ah bagong pasok bagong register anyway can [2:07:43] can you look uh into it uh mr secretary will do sir and we will report to you i i will [2:07:48] yield the floor to the uh to senator tulpa or the senate president mr chairman our senate president [2:07:56] thank you thank you uh mr chairman um i'll start off uh mr chairman with uh some budgets uh some of [2:08:06] the items in the 2026 budget uh nadiscussan ni sekretary to kanina yung yung uh saloon no and i would [2:08:16] like to understand um uh how come the special provision wasn't triggered i think it was uh uh [2:08:24] uh uh uh nalagay natin tong special provision in foreign and domestic financing arrangements [2:08:30] uh this is an offshoot from an information from the coast guard na ang coast guard [2:08:37] uh nakasecure sila ng oda uh to buy uh coast guard ships so uh last year we had a discussion sabi [2:08:46] natin bakit hindi natin gawin the same for the defense no whether oda or other forms of loans and [2:08:52] hence may nagay natin tong provision but i want to understand secretary how come hindi siya nagamit is [2:08:57] it too tight is it not uh kulang pa sa language uh maybe understand the kung ano naging uh result [2:09:07] nito no it's an innovation actually uh proposed by the secretary and uh sabi ko nga this is a good way of [2:09:14] uh multiplying the financial capacity of the armed forces or the dnd uh they're basically [2:09:23] two reasons your honor that uh there's a tight fiscal space for what we need hence the provision [2:09:31] would not be triggered and secondly we were not able in so far as the proposal sent to us [2:09:39] to get the financing in the rate that we want it was too expensive your honor for for us to trigger [2:09:48] hence we did not trigger your honor pero merong sanong opportunity meron pero mataas [2:09:54] ho ang financing cost hindi lang ho mataas yung cost pero pati financing cost mataas [2:10:01] it's a timing issue na rin timing issue triggering issue your honor and do you uh uh propose to [2:10:08] uh include it include natin ito ulit sa 2027 budget it will provide us with the flexibility your honor [2:10:16] until the presidential decree limiting the amount of foreign borrowings that we can do [2:10:24] for defense to 300 million pesos a year is repealed okay so we would request it very humbly request it [2:10:32] again your honor with the assurance that we will not trigger your honor unless uh the department of [2:10:38] finance is comfortable with it and we are comfortable also with the with the item that is being acquired [2:10:45] with the terms of uh the financing yes your honor admittedly the uh because of the because of [2:10:52] government bonds everything is expensive right now even in india your honor they increase the yield to [2:10:58] 5.13 percent in government bonds so uh because to defend the uh the uh the indian currency so it's [2:11:07] it's a worldwide yes yes correct that's actually a reason why peso is weakening because of um foreign [2:11:14] interest rates and with critical infrastructure that we need financing to uh we understand the mix your [2:11:21] honor but if we find a need that we can fill with the terms that our are we we feel your honor will not [2:11:30] be replicated any time then we will not hesitate to ask the secretary of finance to trigger how about [2:11:37] secretary odas kasi odas are more competitive but i'm not very sure whether that's available for [2:11:44] defense equipment i know they're available for pcg which is a civilian type of operation [2:11:51] law enforcement type of operation but for defense i'm not very sure kung available [2:11:55] maganyan sa defense no your honor they're not available normally uh with japan as uh as a matter of [2:12:01] fact there's the official security assistance uh which is a grant of 200 million for the past three years [2:12:08] we were the recipients uh but uh normal oda financing which has to conform to oecd and other [2:12:20] requirements still uh defense uh there are some countries that accept it and some none so the [2:12:28] financing for defense are special purpose credit agencies normally tied to exports of the uh providing [2:12:37] country your honor thank you for that information we'll propose to the chairman to uh uh re-include [2:12:44] the special provision for financing and uh um for foreign and domestic financing thank you your [2:12:53] honor in the same way that we did not trigger this your honor we did not uh obligate the full amount [2:12:59] of the 50 billion uh modernization because it will result in a payable of more than the 50 billion this [2:13:08] year to about 80 so you're also very conservative in triggering that your honor thank you thank you [2:13:14] secretary and i'm sure kayo being a finance guy before kabisado nyo mga ganitong uh impact to our uh balance [2:13:23] sheet yeah um i'll go to uh a related item this is on uh modernization uh secretary and this has been a [2:13:33] a really challenging um uh activity of uh appropriation because a malaking amount [2:13:44] um um and last year uh there was an allocation uh in the unprogrammed funds uh of um 50 billion [2:13:58] and uh it not triggered by tong unprogrammed funds i just want to understand whether it has been [2:14:06] triggered normally and nasa dulo na third fourth quarter but i'm not the the rationale there is [2:14:14] uh lower down the line items in the unprogrammed uh uh lower down the line items in the unprogrammed [2:14:18] para maprioritize ka agad the modernization and matrigger at mabigay ka agad sa afp yung ano [2:14:24] but i want to get an update whether not trigger who shall hindi your honor in the same manner as uh we did [2:14:31] not trigger the other items but because it would balloon the modernization payables alone for this year [2:14:38] we did not trigger the unprogrammed and we could not trigger it because uh the total of [2:14:44] the amount both program and unprogrammed uh probably would be the full amount of regular uh modernization [2:14:52] infra just to pay uh the obligations okay so in in other words it's it's available but not uh not [2:15:03] the timing is not uh favorable yes your honor uh we we obligated 84 percent the 12 trigger would cause [2:15:12] us to exceed the 50 billion threshold actually our payable for mica this year would be about 70 right [2:15:20] uh 50 but if we trigger the 12 percent it will be about 70 that is the constraint your honor okay [2:15:29] that's why we're not triggering the 12 and because what you said earlier it's a seller's market yes your [2:15:35] owner so mahal ang equipment ngayon mahal po ang equipment at pamahal pa ng pamahal because even the raw [2:15:43] material inputs sa equipment ay umaakyat po critical minerals uh semiconductors electronics [2:15:52] bakal uh copper uh other inputs home lumalaki so with what's happening around the world right [2:16:00] right now my mga conflicts ang impact nyan is impression ng equipment tumataas [2:16:07] sya o po at saka yung demand po mataas so yung presyo po maakyat kasi uh uh dun lang po sa uh munitions [2:16:18] no which is not an item of modernization for 105 and 155 no 155 mm ammunition bumibili pa ho sa secondary [2:16:30] market kung may countries na pwede magbenta ng stock nila para mas supply lang doon sa ukraine [2:16:36] or other countries no sa sa or sa israel actually uh bumibili nung araw po so complicated itong [2:16:47] situation natin when it comes to uh defense equipment kasi po uh interrelated itong mga conflicts [2:16:53] to us historically po after uh after uh after the fall of the uh berlin wall in scale down po yung [2:17:04] tooling of production for defense equipment worldwide lalo na po sa europe so ngayon humahabol pa po [2:17:12] sila sa capacity just to supply uh ukraine in so far as the eu is concerned so wala pa po sila [2:17:20] sa full capacity actually po ang uh ang uh germany po ay uh if i'm not mistaken 500 billion euro ang [2:17:32] kanyang modernization hindi pa niya na uubos po kasi wala pong capacity to produce pa ang kanyang bansa so [2:17:43] it is also a question po it is also a question po of availability because of limited lines of production [2:17:51] because of the scale down of defense equipment the only country your honor uh in our uh uh environment [2:18:04] in our like-minded environment that is equipped but not totally equipped to supply a hundred percent [2:18:13] of uh its clients demands is korea which is why we have a comprehensive strategic partner with uh [2:18:22] partnership with them and joint development with them there were the only ones your honor never to [2:18:30] slow down their uh production and industrial base for producing defense equipment [2:18:37] yeah ngayon kasi ta ano talaga i mean you can see it in the news na um uh parang parang buong mundo [2:18:46] there are some things happening in different parts of the region and and definitely uh a lot of [2:18:53] countries now are stocking up uh modernizing uh increasing their capability and of course for us who are [2:19:00] um also modernizing it's um with very very limited uh resources impacted tayo with those uh conflicts [2:19:11] uh your honor may i point out also in asian for example indonesia has ordered 47 new fighters uh [2:19:20] uh uh uh the uh top of the line uh rafales from from france malaysia is continuing to expand its uh [2:19:32] capabilities actually they had the missile defense contract which was cancelled by i believe finland [2:19:38] because they needed to recommit it somewhere else i'm not sure no it's norway i think uh even brunei [2:19:48] is buying uh what we heard is that they are acquiring their first fa50s so everybody within [2:19:56] the region is really building up its own capabilities of course the outlier there is singapore because it [2:20:03] has always done so from day one of its uh creation your honor secretary is this a from a policy point of [2:20:13] view is this a signal that the world the entire world right now is changing in terms of their mindset [2:20:20] on defense because it's becoming more volatile in our region definitely our region is becoming more [2:20:28] volatile as we nakikita naman natin so west philippine sea but in the other parts of the world is also doing [2:20:34] the same i think your honor it's not only a question of volatility which you will need to deter and to [2:20:42] address but a question also of long-term resilience uh many countries do not want to be faced with a [2:20:50] situation where they will not be able to deter with the basic capability and wait or or rely totally on [2:21:02] an organization or a conglomeration of countries to come to your aid if at all [2:21:10] it comes to that you will still have to wait for some period of time before help comes that's why you [2:21:18] have to build up that basic amount of resilience to to survive in the meantime but most importantly your [2:21:26] honor it is also a reality that a more robust defense uh uh defense setup deters aggressive actions [2:21:39] against against and it is a deterrent to aggressive actions and to conflict more importantly than the [2:21:49] need to use it it is a warning to make a a a an aggressor have a second thought before it even attempts to do [2:22:00] so parang yun yung sinasabi ni trump peace through strength yeah yes your honor it's just like you know [2:22:09] building a high fence in your house it deters uh people from coming in it's the same way thank you [2:22:17] mr secretary i'll go to mr chairman do you have any interest yes i see senator dolfo wants to interject [2:22:24] uh with your indulgence uh with your indulgence uh senate president uh yes uh mr secretary ano [2:22:30] po uh with the indulgence of course of our senate president uh sarap po ng mga pahayag uh lately [2:22:38] po ng uh ambasador po ng china at ito patuloy po na tension sa west philippines sea ano [2:22:46] po ang uh konkretong paghanda po or pwedeng ihanda ng armed forces of the philippines para [2:22:51] maprotectahan po ating teritoryo mga sundalo at mga mamayan sa kabila po ng mindset na [2:23:01] naitatag ng mga dating opisyal na isang nuclear lang sasabog na tayo na lulusubin tayo dudurugin [2:23:10] tayo pag umat wala naman po tayong ginagawa diba na pag umalma tayo so yung mga tao naman [2:23:17] kagad sinasabi pag gagawa natin bubombahin tayo gagirahin because of his pronouncements [2:23:23] before mga officials natin na parang tumatak na sa isipan ng mga kababayan natin [2:23:30] huwag na lang ho tayo magsalita dahil nakakatakot kawawa tayo ako eh tapos itong recently [2:23:36] pa na pailan daw ho sila ng persona ng grata then yung mga official natin eh hindi [2:23:44] nilang tatanggapin doon well yung mga official naman siguro na ito I'm sure wala naman [2:23:49] silang interest din na pumunta ho doon sa lugar na yun pero what kind of preparations are you [2:23:53] doing now uh to counter this yung to allay the fears of the public na bubombahin tayo [2:24:00] nuclear dodurugin et cetera et cetera mr secretary unanguna po talagang uh we're trying our best [2:24:09] really to work uh not only singly pero uh with our other allies to deter any more aggressive [2:24:19] physical actions on a military sense by china and it is not only a threat to us but it was also a [2:24:29] threat to vietnam to malaysia and to uh brunei and a threat to japan where their actions are equally [2:24:39] uh aggressive not to the extent that we are facing because of the proximity of uh uh 800 kilometers [2:24:50] away from china to uh the uh shores of palawan in the west uh philippine sea and south china sea area [2:25:00] uh pero sa haba po ng ating uh uh boundary sa pacific ocean so ang kanila pong behavior [2:25:09] hindi lang po sa atin kahit po sa india may inaakuna naman sila na lubain so pati po ang india [2:25:17] uh at meron na silang karanasan na nagka border conflict na ilang beses nagiging [2:25:26] mas agresivo po sila so it stands to reason na although may individual response tayo na dependent [2:25:37] actually more than response po ang ating dapat gawin is to build deterrence magdalawang isip muna kahit [2:25:45] sino kahit sino bago tayo guluhin kasi maaari nating pasakitin ang ulo nila at it's not worth it at the end [2:25:54] of the day pero ah habang ginagawa po natin yan a collective uh deterrence is necessary po [2:26:05] uh even with russia po na napakalakas eh hindi niya kinaya yung ukraine kung walang tulong [2:26:13] ang north korea at saka china sa kanya so ano pa kaya tayo na mas maliit kaya nga po ang [2:26:20] mga alyansa natin ay pinagtitibay natin na mabilis at yan ay ayaw ng china kasi siya ang [2:26:31] outlier dito eh ang outlier po kasi siyang nag reclaim ng walang ibang nag reclaim sa buong [2:26:38] mundo yung nine dash line po niya at hindi lang po yan eh kung pumayag tayo ng nine dash line [2:26:44] ngayon eto na nga pati batanes po sinasama na po nila yan baka hanggang hanggang kung saan [2:26:53] lupalop na umabot ang mga claims nila so ah we we we are trying our best given ah fiscal [2:27:02] constraints at nakikita naman po natin ah ah senator na one hundred percent ang accomplishment [2:27:09] ng ah territorial defense pero sinasabi ko na na hindi sustainable to kasi one hundred percent [2:27:17] accomplishment lagi dapat may gap yan for reserves eh kung sagad sagad po maubusan po ng gasolina yan [2:27:25] one you know figuratively ah one day so we have to build that space on on the dimensional size and [2:27:34] notional size of our operations i get the point that the public is also uh worried as to the [2:27:42] ability of the armed forces to defend and protect them that is why all our actions who are calibrated [2:27:50] in a manner which we can sustain and not to go beyond the sense an unsustainable [2:27:57] manner or an irresponsible manner for that matter thank you your honor because the secretary the [2:28:03] mindset was gigirahin tayo nauna po eh gigirahin tayo bobombahin tayo ah pag tayo we stand up [2:28:13] against china i'm not saying nag girahin natin dahil truly wala namang tayong capability but then [2:28:18] standing up i mean holding our line hindi naman siguro tayo bobombahin kasi sabi po na iba bobombahin [2:28:26] tapos would you agree with me sir na nakumukuha ng lakas ng lobby tong china because there is some [2:28:32] officials in this land they're saying that tayo parang tayo pa ang may kasalanan and then [2:28:37] supportado sila ng isang grupo probably group ng mga trolls could that be the reason kaya lumalakas [2:28:43] ang loob po ng chinese ambassador uh mr secretary maari pong isa nasa rason yan kasi the best way to [2:28:51] weaken your enemy is to foment internal dissension [2:28:55] in a in a in an area which you want to uh compromise or to co-op maari pong malakas na dahilan yan [2:29:06] at uh actually uh the uh gas lighting is one of the worst uh things that uh we can uh we can experience [2:29:19] uh at this time uh lalo lalo na po sa in the face of a blatant statement by the chinese [2:29:26] ambassador pag may nagtatanggol pa dyan e talagang halatang halatana naman ho na [2:29:31] uh uh hindi uh hindi po makatwiran ang ganilang posisyon pero meron po talaga we cannot deny it [2:29:41] yes uh before uh uh center to why they center luxon would like to uh uh interject with his [2:29:50] permission mr chairman there seems to be a glaring disparity you know on our defense spending [2:29:56] compared to our regional peers particularly china kasi yung kanilang the defense expenditure is 52 [2:30:04] times ng pilipinas sa kanila 335 billion us dollars or roughly 2.1 trillion pesos so how do we [2:30:15] compensate how do we do a david against a goliath in this regard kasi wala naman tayo magagawa except [2:30:22] mag-improvise hindi ba so meron ba tayong plano man lang sir uh the best way is to make ourselves [2:30:30] an uninviting target uh the the hard part there is that an uninviting target would mean uh only our land [2:30:42] domain which is only 20 percent of our uh total territory 20 to 30 percent however for the land [2:30:52] domain to be resilient we need full uh exploitation and exploration of the 80 percent maritime domain so [2:31:02] yun ho ang nagpapakomplicate ng situation pero i believe ho that uh with the x billion reported by [2:31:14] china this is even understated because a lot of it a lot of the budget does not go to the pla but to the [2:31:20] maritime militia the coast guard which are basically under the pla but not officially reported [2:31:29] so there is no substitute ho but to build a level of resilience which will make it very unattractive for [2:31:40] them there are ways so and we can we can also uh in executive sessions share some thoughts on it your [2:31:48] honors can you see how we can match china for example do sa mga warships missiles wala tayo [2:31:57] let's uh accept the fact so kailangan mag-improvise tayo like what ukraine is doing against russia [2:32:05] for lack of a better analogy but we should also embark on a similar program [2:32:10] uh less costly but effective and we can match aside from of course our alliances you know mutual defense [2:32:19] treaties yung ating sofa and sabi nyo nga kanina yung kapapasalamang na treaty with the [2:32:26] france you know so aside from that but we cannot solely rely on our allies kasi they have their own [2:32:34] national interests to contend with in the first place in the first place in france medyo magulo so [2:32:39] kailangan may mag-improvise tayo and i hope uh we are on the same page on this you know we cannot just [2:32:47] divulge yung ongoing programs then but i was told that there is such uh a program [2:32:53] meron sir meron meron po at kaya po uh nirefocus na natin si director amano sa higher uh [2:33:03] uh capabilities na uh pwede natin gamitin based on ukraine uh ang maganda din pong halimbawa dito ay [2:33:14] yung vietnamese experience no na uh talagang matatag din ang tayo nila sa sa sa china no uh at [2:33:26] ginera na sila noong araw at hindi umubra yun nga lang iba talaga yung makeup ng vietnamese [2:33:34] uh society kesa sa atin sanay naman talaga sila sa uh yun ang balakid po sa atin kaya [2:33:42] kailangan ho uh it's deterrence rather than retaliation and that's why ho in our alliances we are [2:33:50] focusing on the non-retaliatory features of our defense alliances but focusing on the uh deterrence [2:34:02] portion uh we will never match china in terms of pound for pound capability but we will make the [2:34:10] decision calculus as unfavorable to it as possible that is the goal your honor thank you well my last [2:34:16] question uh mr secretary uh last year uh last year or just this year when i was the chairman of the [2:34:22] foreign relations i was able to talk to two or three ambassadors foreign nations i believe [2:34:27] yung isa po nakausap nyo na yung si ukraine they are uh willing to put up a factory here maintenance [2:34:34] etc matter of fact they're interested po dyan sa may uh kavite um to to help us with the drones [2:34:43] uh have you also spoken to those uh diplomats uh then to other european countries very interested and [2:34:52] willing to to come here to invest actually provided that we purchase their uh equipments yung mga drones [2:34:59] uh sea and air marami na po uh your honor and uh we are uh actually uh some of those are in the final [2:35:08] stages of uh scoping the engagement uh once again all of these engagements your honor will uh number one [2:35:18] place is uh access securely and location and supply chains you know we we we are pursuing your honor uh to [2:35:29] the best of our ability on a secure basis tama po kasi kung titusin sir hindi ho natin kaya [2:35:35] ang bumili ng mga frigates and uh aircraft carriers submarines then may options po tayo [2:35:42] na mga ikanga mga drones sir one last question was just wondering may mga donations po tayo [2:35:46] ng mga drones uh sa america other countries whatever happened to these drones nagagamit po ba [2:35:52] natin limited po to sa lahat po nang dinownload nila nagagamit ang iba pong hindi nagagamit yung [2:35:59] nabili nung araw na hindi po nag uh fit sa ating bagong c4 uh command and control secure [2:36:12] communication structures so mag mula nung nag umpisa po tayong kumuha ng drones ay [2:36:20] uh ang environment nun ay purely tactical so sa ngayon po nagiging strategic yung environment [2:36:29] kaya kailangan po enhance ang interoperability po nito so uh that is where we are proceeding right [2:36:37] now there are uses ho tactically for for drones and they are being used uh however for the bigger [2:36:45] picture ho we need more multi-purpose drones and we need the facility for quality raw materials for [2:36:53] this and actually precision tooling for it it's the precision ho na kailangan eh and uh when we [2:37:03] learn from the korean experience so ang kanilang modernization started in 1976 when uh the united [2:37:12] states said hindi na nila susuportahan but the defense uh industry was only an offshoot of basic [2:37:24] industry your honor because uh they had basic industry already which uh would support the ecosystem for [2:37:37] sustainability in the defense industry still uh electronics and other capabilities if we do not [2:37:46] also remediate basic industry your honor for example the raw materials secondly power we will be [2:37:57] constrained to being an assembly uh location also reliant on importation for our outputs so we we have [2:38:12] to really structure it properly here on thank you secretary and mr chair thank you thank you our [2:38:19] president thank you uh senator erwin for those interventions uh uh [2:38:23] uh another way is forging alliances with like-minded countries and this uh last few months [2:38:36] na approvan dito sa senado yung treaty for uh sova in state of visiting forces agreement with new zealand and also [2:38:46] with uh france so dalawa po yung na approve um and canada pala and canada no tatlo are we looking at uh more of [2:38:55] these arrangements in the next coming weeks kasi ano ito eh uh kung hindi natin kung kung challenge [2:39:03] siya atin ni modernization at least in training and interoperability na enhance with other nations and [2:39:10] this is also a signal or a message that these nations agree with our position in uh defense and also [2:39:18] geopolitics your honor there are two more in the pipeline i hope this can be concluded as soon as [2:39:25] possible uh and uh uh in the other countries where we have visiting forces with for purposes of scoping we also [2:39:38] now that's why we need the moe participate in exercises outside the philippines for example your [2:39:47] honor i give a example the philippine navy the philippine army uh participates in exercise i i forgot i [2:39:57] cannot pronounce the name in australia karubaru which is an army exercise uh the navy participated in the [2:40:08] u.s rimpak exercise for the first time together with the coast guard and the air force participated in [2:40:16] exercise pitch black in australia your honor which uh actually because of the enhancement to the fa 50 [2:40:29] that we made uh the philippine air force was able to interoperate with 21 other countries [2:40:39] and for the first time lead a strike package and that needs a different level of qualification [2:40:48] so two of our uh fa 50 pilots are strike package leaders and more importantly your honor which is why [2:41:01] the ecosystem is important everything was controlled from the ground and no voice anymore it was all keyboard [2:41:09] so we have graduated and certified our first set of battle managers that are qualified [2:41:18] to orchestrate uh international air operations and the we will continue to deploy them because we cannot [2:41:28] allow them to lose that proficiency it is a constant exercise so that that is another dimension your honor [2:41:37] our participation in foreign shores which builds us the confidence also of operating in an extended [2:41:46] environment uh stretching also our logistics capabilities for example your honor in australia [2:41:54] uh the the we had to deploy about 200 personnel and support them uh and uh we uh continue to gain [2:42:09] confidence and experience uh and confidence and experience uh and knowledge also in these exercises so [2:42:18] when we operate outside even non-vfa partners we get to scope also the fit for a future vfa for us the philippine marine corps [2:42:31] also uh participates also uh participates also in uh exercises abroad and i have been encouraging them [2:42:40] to uh to participate elsewhere with like environments so that they can understand also better uh the operating [2:42:52] environment in even the equipment your honor because we cannot hope to replicate our bigger country partners [2:43:01] also in terms of deployment for example one marine expeditionary unit of the united states for an exercise [2:43:09] here the uh pre-deployment is already almost a billion dollars and we we can never hope to approximate [2:43:15] that but nonetheless there are partner uh the doctrine of they they deploy in force they will never deploy [2:43:25] uh with uh in a force package that is less than their doctrine and that goes for the u.s air force and [2:43:33] the u.s navy uh that's why a carrier for example your honor is always a carrier group which has its own air [2:43:41] group its own uh its own uh so in small country so uh the it's also a question right now of scoping the best [2:43:52] fit wherever in the world right now secretary and you mentioned there are three more coming in are you [2:43:58] at liberty to uh share with us uh negotiations are going on now your honor with the uk uh with germany i [2:44:10] think we're going to have one but there is another country your honor where we sent a first draft and they [2:44:15] would rather i not disclose uh publicly until uh the process but that third country is extremely [2:44:23] important to us will bring us to how many uh uh sova treaties uh so five plus three eight eight now [2:44:33] all right thank you uh secretary um secretary i'll go to some items in the 2026 budget so we'll understand [2:44:41] um if we will continue this concept in the 2027 budget in 2026 uh for locally funded infrastructure [2:44:52] uh meron 6.9 billion pesos and uh if you remember last year this was from dpdhd transfer namin to [2:45:04] to dnd amounting to 5.4 billion pesos because nakita natin maraming mga projects doon hindi alam [2:45:11] nung mga mga mga mga mga mga end users or nadidely or kulang yung pondo uh hindi nakoko coordinate mabuti so we [2:45:21] transferred it to um uh to um the dnd um how is that experience uh that because that is a again a a a reform that [2:45:35] we instituted in 2026 uh of course uh with with coordination with the dnd is but is that more [2:45:43] efficient in terms of finishing the projects i believe it is more efficient your honor in finishing [2:45:51] the projects but if we will revisit the whole episode it is also the lack of an infrastructure plan [2:46:01] of the armed forces of the philippines and because of the fact your honor that capital outlay [2:46:08] allocations have not been funded to the extent we require so what happened were different units your [2:46:17] your honor had to uh had to uh request for their own peculiar infrastructure needs so the the ticas [2:46:31] experience are small projects that are asked for by units with uh with uh uh the dpwh and the uh the [2:46:44] budget at that time but now your honor i think the actual remediation is an infrastructure program [2:46:53] and plan so that we have standards qualities and actually well thought of uh areas up to the battalion [2:47:06] level level at least your honor uh we we we have this perennial problem really of uh an offshoot of uh [2:47:20] a question of uh tenure of the areas which is why also we are busy titling all the lands so we can [2:47:31] uh uh spend uh uh spend uh uh uh uh spend uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh uh [2:48:04] to the phenomenon, some were really needed, Your Honor, for example, which is in camps that [2:48:19] have significant presence. I think the phenomenon is also not confined to the armed forces, [2:48:32] but also to the police force. For example, a lot of camps of the police force are still AFP, PNP [2:48:42] joint camps, and that is still an issue which we have to resolve with the PNP also. [2:48:49] Nonetheless, Your Honor, for example, I have already instructed also the AFP, our SOLCOM [2:48:57] headquarters in Lucena. It's quite small for what we need. Even the tactical operations group there [2:49:05] is so tight that we need to look for adequate locations in areas that will really address [2:49:13] the requirements. So actually, it is infrastructure discipline and project execution, Your Honor. The [2:49:21] project execution gap and execution gaps have been the number one bane of the armed forces [2:49:28] which we are trying to remedy managerially already, Your Honor. It's painful, but we need [2:49:33] to do it, Your Honor. [2:49:34] Well, Secretary, the reason why I ask, kasi for 2027, uh, nakita namin sa DPWH budget meron pang, [2:49:43] meron pang, uh, 494 million, um, pesos related to, um, the DND or AFP, uh, of which 452 [2:49:57] million is for the PSRG barracks in Manila, no? So the point I'm trying to make is, um, going [2:50:07] by what we did in 2026, no? Uh, we're also thinking of doing the same in 2027 so that, um, the, uh, DND [2:50:17] and the AFP will have, uh, more cohesive coordination, uh, with the end users. Kasi yun yung isa sa mga [2:50:27] nakita natin, hindi alam, biro mo yung, yung, yung, yung, yung end user, hindi alam yung may [2:50:33] ginagawa doong infrastructure. Kung natapos man, hindi proper turnover, minsan kulang. So we saw [2:50:40] another item in, uh, the, in the DPWH budget. May isa malaking item, no? Yung barracks, which [2:50:46] is, uh, PSRG barracks, which is, uh, 452 million, no? So I want to ask the department if, uh, is, is [2:50:55] that going to be, um, the same, uh, will you advise to do the same, uh, from what we did [2:51:03] in 2026? Your Honor, uh, in consultation with the, uh, uh, former JTEN, uh, we, we can share [2:51:14] with the committee our experience with it and make the appropriate recommendation, uh, to [2:51:18] the committee in writing, Your Honor. Uh, uh, right off, uh, uh, I think there's a problem [2:51:26] with the acceptance of the, uh, uh, uh, uh, projects. Uh, so, uh, we will make the appropriate [2:51:34] recommendation, Your Honor, in writing. [2:51:38] Secretary, Secretary, we were looking at, uh, yung, yung, anong meaning ng PSR, PSRG? [2:51:46] That's the Presidential Security Command, Your Honor. [2:51:49] Ah, okay, okay. [2:51:52] Reaction groups. [2:51:53] Okay, okay. So, um, so just let us know, um, if we will, uh, apply [2:51:59] the same concept. [2:52:01] Sorry, uh, Your Honor, it's a facility in the PSG, uh, area, Your Honor. [2:52:08] I can disclose it later. [2:52:10] Okay, thank you. Okay, Secretary. [2:52:11] Uh, um, so we'll, we'll wait for that official communication, uh, if we will do the same. [2:52:19] Um, again, ang, ang, ang, ang, ang direction is to have a much more cohesive coordination between [2:52:26] the implementer and the end user. [2:52:28] Uh, uh, uh, uh, [2:52:29] uh, uh, uh, kasi in the past, nakita natin maraming unfinished projects or projects na hindi [2:52:34] na kokoordinate mabuti sa DND. [2:52:37] And, uh, uh, uh, itong amount na 494, uh, uh, andun pa siya sa, sa, sa, ano siya, nasa [2:52:45] DPWH. [2:52:46] Uh, and Your Honor, there will also be a problem with costings in the future because our infrastructure [2:52:52] will cost necessarily higher than normal infrastructure [2:52:56] because of the hardening we need to do [2:52:58] and the security we need to build into the infrastructure. [2:53:03] So it's really better, Your Honor, [2:53:05] that it be downloaded to the DND [2:53:07] so that we can account for it more properly also. [2:53:11] However, Your Honor, we'll make the recommendation [2:53:14] for existing projects to the committee in writing. [2:53:17] We'll give you an update on the $6.9 billion [2:53:24] but we'll wait for the latest update on that. [2:53:28] Yes, Your Honor. [2:53:29] Thank you. [2:53:34] Mr. Chairman, I'll yield to the others who want to ask. [2:53:40] I'll just go for the second round. [2:53:41] Thank you. [2:53:42] Yes, Senator Laxon. [2:53:45] Siguro, Secretary of State, I find my honor. [2:53:49] Manila po ang ating support na napapapalakas [2:53:51] ng ating pangbansang tanggulan. [2:53:52] We've been very consistent here in the Senate. [2:53:55] Pag binabawasan kayo sa house, [2:53:57] kami po ang nagre-restore. [2:53:58] Madalas dinadagdagan pa hoon namin. [2:54:01] Pero binang Finance Committee, [2:54:02] kailangan din natin matukoy [2:54:03] kung sa pinakamalaki at matutulong [2:54:05] ng bawat piso yung ilalaan natin [2:54:07] sa inyong regular budget, [2:54:09] ng regular budget proposal na $576.922 billion. [2:54:15] Only $328.78 billion ang naisama sa NEP [2:54:20] na dinadagdagan ng $325,186,044 from the House. [2:54:29] But it only represents a 0.17% increase. [2:54:34] But it's still significantly lower than your original proposal. [2:54:38] Among the unfinded items, [2:54:41] just as financier, [2:54:43] I'd just like to ask, [2:54:44] what are the three most critical needs [2:54:46] that the Senate should prioritize? [2:54:47] And how would our defense readiness be affected [2:54:50] if these are not addressed? [2:54:52] In 2027, [2:54:54] siguro yung wishlist na lang [2:54:55] because of our very limited fiscal space, [2:54:59] Secretary, [2:55:00] ganun ang ginagawa na ang mga departments. [2:55:03] Yung mga wishlist [2:55:05] and then yung in order of priority. [2:55:08] Your Honor, [2:55:09] we have submitted the same also to the House. [2:55:11] We will submit it to the Senate [2:55:13] so that our needs [2:55:16] will not be publicly articulated [2:55:22] and to preserve our operational security, [2:55:25] Your Honor. [2:55:25] We'll give it to the committee, [2:55:27] Your Honor. [2:55:28] Yes, [2:55:28] please do so. [2:55:30] And then we will try our best. [2:55:32] I saw earlier in your presentation, [2:55:35] 50 billion lang yung na-approve [2:55:37] sa ating AFP modernization budget [2:55:41] for next year. [2:55:43] And during our first briefing last time, [2:55:47] ang sabi po, [2:55:49] kung mga 70 at least, [2:55:52] that's the minimum budget [2:55:56] that you can survive. [2:55:58] Kahit papano hindi masyadong maapektuhan [2:56:02] itong ating AFP modernization. [2:56:04] So, [2:56:06] do you confirm, [2:56:07] mga Secretary, [2:56:08] na yung 70, [2:56:09] yan ang ating target na minimum, [2:56:11] at least minimum na natin. [2:56:12] Kung kakaya na natin taasan, [2:56:14] bakit hindi? [2:56:14] We'll do our best. [2:56:16] Yes, [2:56:16] Your Honor, [2:56:17] para matrigger lang namin [2:56:19] yung repayments [2:56:20] ng kailangan namin [2:56:23] i-trigger this year. [2:56:26] Kasi magkakaroon kami [2:56:28] ng window of repayment comfort [2:56:30] na hindi mapapahiya [2:56:32] ang ating bansa [2:56:33] kung mag-trigger po tayo. [2:56:35] Ah yes, [2:56:38] sa introduction. [2:56:39] Magkano yung shortfall [2:56:40] ng BCDA [2:56:41] sa remitant sa inyo? [2:56:43] Inaaccount pa po namin, [2:56:44] sir, [2:56:44] dahil ayaw nila [2:56:45] mag-disclose ng dokumento. [2:56:47] Pero estimate? [2:56:48] Wala pa po akong magawang estimate. [2:56:50] Pero ang sinasabi ko lang, [2:56:52] sir, [2:56:53] is yung 26 years [2:56:55] na 45 billion [2:56:56] vis-a-vis yung kinikita nila [2:56:58] na sinasabi nila [2:56:59] at nire-remit nila [2:57:00] sa gobyerno [2:57:01] na kailangan [2:57:02] sa amin mapunta yan, [2:57:04] ay maliit po. [2:57:06] Wala pa po [2:57:07] isang taon na pension yun. [2:57:09] Secondly po, [2:57:12] gumagawa po sila [2:57:14] ng mga subsidiary corporations [2:57:16] na nagkakaroon [2:57:17] ng mga budget ito [2:57:18] rather than [2:57:19] idulog po sa amin. [2:57:22] So, [2:57:23] matagal na po namin... [2:57:26] Sisingilin namin [2:57:27] pagdating ng budget [2:57:28] ng BCDA. [2:57:28] Ay, thank you po, sir. [2:57:30] Thank you. [2:57:30] Monitor nyo na lang [2:57:31] kung paano sasabonin [2:57:32] ni Senate President. [2:57:33] Number one po [2:57:35] at saka number two po, [2:57:36] yung mga [2:57:37] hindi pa nila [2:57:38] na [2:57:40] naangkop na area, [2:57:45] kailangan na po natin [2:57:46] yung mga area na yan [2:57:47] para po sa operations natin, [2:57:48] lalo na po sa [2:57:49] logistical [2:57:50] exercises natin. [2:57:53] Thank you po, sir. [2:57:54] I think [2:57:55] your help will be [2:57:56] very, very [2:57:57] much appreciated. [2:57:59] Actually po, [2:58:00] nagtutol na kami [2:58:01] sa extension of life [2:58:02] nila. [2:58:04] Kasi po, [2:58:07] dun sa [2:58:08] draft bill [2:58:09] sa extension [2:58:10] ng life nila [2:58:11] that they will [2:58:11] own title [2:58:12] to the properties [2:58:13] and to be able [2:58:14] to sell them. [2:58:17] Eh, kung [2:58:17] ngayon lang po [2:58:18] na beneficiary [2:58:21] of the amount [2:58:22] of the fund [2:58:23] is the armed forces, [2:58:26] medyo [2:58:26] hindi po [2:58:29] satisfied [2:58:30] yung AFP [2:58:31] dun sa outcome [2:58:32] and they are [2:58:33] a trustee. [2:58:34] What more [2:58:35] if they are [2:58:36] allowed to sell? [2:58:37] So, [2:58:37] wala na po tayong [2:58:38] hold sa strategic [2:58:39] assets natin. [2:58:42] Eh, [2:58:42] hindi ma-replicate [2:58:44] ito [2:58:45] kahit [2:58:45] kailan po. [2:58:49] Siguro, [2:58:50] continue, [2:58:51] Secretary, [2:58:51] you're asking [2:58:52] for the provision [2:58:53] that we are [2:58:54] considering [2:58:55] to add [2:58:56] sa 2027 [2:58:57] ng gabi [2:58:57] yung foreign [2:58:58] and domestic [2:58:59] financing [2:59:00] agreement. [2:59:01] Probably, [2:59:01] this is a, [2:59:03] this will [2:59:04] allow you [2:59:04] to enter [2:59:05] into agreements [2:59:06] dun sa mga [2:59:06] hindi nating [2:59:07] kaya, [2:59:08] yung mga [2:59:08] panaginip na lang. [2:59:09] Maaring [2:59:10] through this [2:59:10] agreement, [2:59:12] probably, [2:59:12] we can already [2:59:13] explore and [2:59:14] pursue [2:59:15] yung mga [2:59:16] things that are [2:59:17] really needed [2:59:18] for our deterrent [2:59:19] or minimum [2:59:21] credible defense [2:59:22] posture [2:59:24] that we need. [2:59:25] I know, [2:59:25] yung MRF natin, [2:59:26] matagal na natin [2:59:27] multi-role fighters [2:59:29] that are very [2:59:30] expensive [2:59:31] as we [2:59:31] discussed before. [2:59:34] Napaka-mahal [2:59:34] kasi talaga [2:59:35] yung squadron, [2:59:36] may mga [2:59:36] iba pang [2:59:37] components, [2:59:38] tapos yung [2:59:39] submarine, [2:59:40] ito yung mga [2:59:40] mahal talaga. [2:59:41] But, [2:59:42] this will, [2:59:43] ito yung medyo [2:59:43] kahit paano [2:59:44] magdadalawang isip [2:59:46] yung, [2:59:46] even a superpower [2:59:47] like China, [2:59:49] if we have [2:59:50] this in our [2:59:50] arsenal, [2:59:51] we'd, [2:59:51] you know, [2:59:52] kahit pa pano, [2:59:53] magiging, [2:59:55] this will serve [2:59:56] as a deterrent. [2:59:56] So, [2:59:57] will this [2:59:57] foreign and [2:59:58] domestic [2:59:58] financing [2:59:58] agreement [2:59:59] allow you [3:00:00] to be able [3:00:01] to pursue [3:00:01] all of this, [3:00:02] itong mga [3:00:03] programs [3:00:05] or projects [3:00:05] that have been [3:00:06] very difficult [3:00:08] to attain, [3:00:09] because of [3:00:10] our [3:00:11] limited funding, [3:00:12] so itong [3:00:13] foreign and [3:00:13] domestic [3:00:13] financing [3:00:14] agreement? [3:00:16] We cannot [3:00:16] say, [3:00:17] Your Honor, [3:00:17] that there's [3:00:18] a one-to-one [3:00:18] correlation, [3:00:20] but it will [3:00:21] allow us [3:00:21] the flexibility [3:00:22] to get [3:00:23] funds if [3:00:24] and when [3:00:25] we need [3:00:26] it extremely. [3:00:27] And let [3:00:28] me also [3:00:29] refer, [3:00:29] Your Honor, [3:00:30] yung domestic [3:00:31] financing, [3:00:32] no? [3:00:32] The reason [3:00:33] na nilagay [3:00:34] natin [3:00:34] ang domestic [3:00:35] financing, [3:00:36] although [3:00:36] normally [3:00:37] dollar [3:00:37] denominated [3:00:38] ang [3:00:39] purchases, [3:00:40] because [3:00:41] we [3:00:42] found [3:00:45] out [3:00:45] during [3:00:46] our [3:00:48] initial [3:00:49] foray [3:00:50] into the [3:00:50] department [3:00:51] that there [3:00:51] is [3:00:52] liquidity [3:00:52] in the [3:00:53] banking [3:00:53] system [3:00:54] for [3:00:55] defense [3:00:56] loans. [3:00:57] May [3:00:57] liquidity [3:00:58] po, [3:00:58] kasi [3:00:58] nga [3:00:59] yung [3:01:01] after [3:01:02] the [3:01:02] pandemic, [3:01:04] yung [3:01:05] loans [3:01:06] ay [3:01:07] ano, [3:01:07] at [3:01:08] ito, [3:01:09] mababa [3:01:09] ang risk [3:01:10] of [3:01:11] default, [3:01:12] kasi [3:01:12] nga [3:01:12] sobring [3:01:13] borrowing [3:01:13] ito, [3:01:14] meron [3:01:14] hong [3:01:14] appetite [3:01:15] ang [3:01:16] domestic [3:01:16] banking [3:01:17] institutions, [3:01:19] kung [3:01:19] nararapat [3:01:20] lang ang [3:01:21] mga [3:01:21] terms [3:01:21] ng [3:01:22] repayment [3:01:23] natin, [3:01:23] at [3:01:23] hindi [3:01:24] maka-apekto [3:01:25] sa [3:01:26] balance [3:01:26] of [3:01:27] payments [3:01:27] po [3:01:27] natin, [3:01:28] at [3:01:28] saka [3:01:28] sa [3:01:28] revenue. [3:01:32] Then also [3:01:33] we [3:01:33] noticed [3:01:33] na [3:01:34] 7.2 [3:01:36] billion [3:01:37] ang [3:01:37] repairs [3:01:37] and [3:01:38] maintenance [3:01:38] budget [3:01:38] of the [3:01:39] AFP. [3:01:40] Of [3:01:41] course, [3:01:41] malagay [3:01:41] ito [3:01:42] dahil [3:01:42] kailangan [3:01:42] mabarating [3:01:43] maayos [3:01:43] at manatining [3:01:44] ang gamit [3:01:46] ng barko [3:01:46] na plano [3:01:47] sa second [3:01:47] other [3:01:47] equipment. [3:01:49] So, [3:01:49] what are [3:01:50] the [3:01:50] measurable [3:01:51] improvements [3:01:52] sa readiness [3:01:52] na inaasahan [3:01:53] nating kapalit [3:01:54] ng dagdag [3:01:55] ng pondo? [3:01:55] Malaki [3:01:56] po. [3:01:56] Dahil [3:01:57] ang supply [3:01:57] chain [3:01:58] po [3:01:58] tayo [3:01:58] po [3:01:59] inauna. [3:02:00] Nag-enter [3:02:02] into [3:02:02] performance [3:02:03] based [3:02:03] logistics [3:02:04] po [3:02:04] tayo [3:02:05] sa mga [3:02:05] manufacturer [3:02:06] mismo [3:02:07] na mga [3:02:08] platforms [3:02:08] na [3:02:09] nangunguna [3:02:09] po [3:02:10] tayo [3:02:11] sa [3:02:11] supply [3:02:11] chains [3:02:12] sa kanila [3:02:13] at [3:02:13] sila [3:02:13] po [3:02:13] ang [3:02:14] nag-provide [3:02:15] na may [3:02:16] responsibilidad [3:02:17] with [3:02:18] use [3:02:19] of [3:02:19] local [3:02:20] labor [3:02:23] in the [3:02:24] future [3:02:24] at [3:02:24] gagawa [3:02:25] po tayo [3:02:25] ng [3:02:26] my [3:02:26] MROs [3:02:26] in the [3:02:27] future [3:02:27] with [3:02:27] them. [3:02:29] Yun po [3:02:31] ang [3:02:31] improvement, [3:02:32] ang [3:02:32] reliability [3:02:32] rate [3:02:33] at [3:02:34] yung [3:02:34] quality [3:02:35] ng [3:02:35] maintenance [3:02:36] po [3:02:36] natin [3:02:36] ay [3:02:37] tumataas [3:02:38] kasi [3:02:40] nakakakita [3:02:41] din po [3:02:41] tayo [3:02:42] nung [3:02:42] araw [3:02:42] na [3:02:43] maraming [3:02:45] gaps [3:02:45] sa [3:02:46] maintenance [3:02:47] dahil [3:02:48] walang [3:02:49] performance [3:02:50] based [3:02:51] logistics [3:02:52] sa [3:02:52] manufacturer. [3:02:53] marami [3:02:55] pong [3:02:55] natutumbok [3:02:58] na mga [3:02:58] instances [3:03:00] na gano'n [3:03:01] na hindi [3:03:02] na dapat [3:03:02] maulit [3:03:04] kasi [3:03:04] nagkakaroon [3:03:06] ng [3:03:07] reliability [3:03:08] severe [3:03:10] reliability [3:03:10] gaps [3:03:11] ang ating [3:03:12] mga [3:03:12] kagamitan. [3:03:15] Likewise [3:03:15] Secretary [3:03:16] I've heard [3:03:17] in the [3:03:17] news [3:03:18] likewise [3:03:18] we had [3:03:19] a chance [3:03:19] to visit [3:03:20] Japan [3:03:22] last [3:03:22] April [3:03:23] with [3:03:23] Senator [3:03:24] Zubiri [3:03:25] and we [3:03:25] also had [3:03:26] a chance [3:03:26] to [3:03:27] meet [3:03:28] the [3:03:28] former [3:03:29] Prime [3:03:29] Minister [3:03:30] Fumio [3:03:31] Kushida [3:03:31] and likewise [3:03:32] yung kaibigan [3:03:33] yun rin po [3:03:33] na [3:03:34] the very [3:03:35] young [3:03:35] and [3:03:36] dynamic [3:03:37] defense [3:03:38] secretary [3:03:39] defense [3:03:40] minister [3:03:40] si [3:03:41] Uizumi [3:03:41] and [3:03:43] census [3:03:43] regards [3:03:43] and they [3:03:44] said [3:03:44] you have [3:03:45] very good [3:03:45] conversations [3:03:48] anyway [3:03:50] they [3:03:51] mentioned [3:03:51] they [3:03:53] are [3:03:53] about [3:03:54] to [3:03:54] turn [3:03:54] over [3:03:54] about [3:03:55] five [3:03:55] or [3:03:55] six [3:03:56] destroyers [3:03:58] tanong [3:03:58] ko [3:03:58] lang [3:03:58] kung [3:03:59] maintenance [3:03:59] na [3:04:00] sinama [3:04:01] nyo [3:04:01] are we [3:04:01] going [3:04:02] to [3:04:03] factor [3:04:04] in [3:04:04] in case [3:04:06] matuloy [3:04:07] itong [3:04:07] transfer [3:04:08] of the [3:04:08] Abukuma [3:04:09] class [3:04:09] destroyers [3:04:10] of course [3:04:10] that would [3:04:11] need [3:04:11] that would [3:04:12] entail [3:04:12] maintenance [3:04:13] and other [3:04:14] expenses [3:04:15] para sa [3:04:15] did you [3:04:17] include [3:04:17] this [3:04:17] already [3:04:18] in [3:04:18] the [3:04:18] budget [3:04:18] secretary [3:04:19] for [3:04:21] the [3:04:22] training [3:04:22] included [3:04:23] dahil [3:04:24] noong [3:04:24] prepare [3:04:25] po [3:04:25] yung [3:04:25] budget [3:04:25] hindi [3:04:26] pa [3:04:26] po [3:04:26] na [3:04:26] firm [3:04:27] up [3:04:27] yung [3:04:27] agreement [3:04:29] to [3:04:29] transfer [3:04:30] so [3:04:31] yung [3:04:32] additional [3:04:33] maintenance [3:04:34] and [3:04:34] operating [3:04:35] expenditures [3:04:35] hindi [3:04:36] pa [3:04:36] po [3:04:36] kaya [3:04:37] may [3:04:37] habol [3:04:38] po [3:04:38] namin [3:04:38] I'm [3:04:40] hoping [3:04:41] this [3:04:41] pushes [3:04:41] through [3:04:42] because [3:04:42] I [3:04:42] think [3:04:43] this [3:04:43] will [3:04:43] definitely [3:04:44] strengthen [3:04:46] our [3:04:46] assets [3:04:47] now [3:04:48] kasi [3:04:48] even [3:04:49] if [3:04:49] you [3:04:49] have [3:04:49] the [3:04:49] money [3:04:50] it [3:04:50] takes [3:04:50] 4 [3:04:51] to [3:04:51] 5 [3:04:51] years [3:04:51] to [3:04:51] order [3:04:52] a [3:04:53] vessel [3:04:54] pero [3:04:54] at [3:04:54] least [3:04:54] kahit [3:04:55] paano [3:04:55] nandiyan [3:04:55] ano [3:04:56] yes sir [3:04:57] there's [3:04:58] going to [3:04:58] be an [3:04:59] inspection [3:04:59] at the [3:05:00] end [3:05:00] of [3:05:00] november [3:05:01] and [3:05:01] we [3:05:02] hope [3:05:02] we [3:05:02] can [3:05:02] finalize [3:05:03] it [3:05:03] as [3:05:03] soon [3:05:03] as [3:05:04] possible [3:05:04] po [3:05:04] that's [3:05:06] good [3:05:06] that's [3:05:06] good [3:05:07] news [3:05:07] no [3:05:07] that [3:05:08] will [3:05:08] definitely [3:05:09] at [3:05:09] least [3:05:09] be [3:05:10] able [3:05:11] to [3:05:11] strengthen [3:05:12] our [3:05:12] capability [3:05:12] special [3:05:13] presence [3:05:14] in the [3:05:14] West [3:05:15] Philippine [3:05:16] sea [3:05:16] five [3:05:16] or [3:05:17] six [3:05:17] destroyers [3:05:21] that we [3:05:23] will [3:05:23] hopefully [3:05:24] receive [3:05:25] from [3:05:25] Japan [3:05:25] actually [3:05:26] the [3:05:26] major [3:05:28] issue [3:05:28] with [3:05:29] the [3:05:29] Navy [3:05:29] is [3:05:29] not [3:05:30] only [3:05:30] the [3:05:30] MOE [3:05:31] but [3:05:31] the [3:05:31] dockyard [3:05:32] which [3:05:33] the [3:05:35] president [3:05:36] has already [3:05:36] given [3:05:37] instructions [3:05:37] for us [3:05:38] to [3:05:38] construct [3:05:38] the [3:05:39] dockyard [3:05:39] because [3:05:39] we [3:05:40] have [3:05:40] to [3:05:40] vacate [3:05:41] sangli [3:05:41] it's [3:05:42] unusable [3:05:43] already [3:05:43] and [3:05:44] unsustainable [3:05:45] as a [3:05:45] dockyard [3:05:46] masyadong [3:05:47] mababaw [3:05:47] na po [3:05:48] yung [3:05:48] sangli [3:05:49] at [3:05:49] maliit [3:05:50] for [3:05:51] the [3:05:51] platforms [3:05:52] that [3:05:52] we [3:05:53] have [3:05:53] so [3:05:54] inaasahan [3:05:58] po [3:05:59] natin [3:05:59] by the [3:05:59] end [3:06:00] of the [3:06:00] year [3:06:00] maumpisahan [3:06:01] na po [3:06:01] yung [3:06:01] groundwork [3:06:02] sana [3:06:02] sa [3:06:04] dalawang [3:06:05] strategic [3:06:06] base [3:06:06] pati [3:06:06] dockyard [3:06:07] po [3:06:07] na [3:06:07] ating [3:06:08] kailangan [3:06:09] na [3:06:09] kailangan [3:06:10] kasi [3:06:11] limang [3:06:11] abokuma [3:06:12] at [3:06:12] walong [3:06:12] OPBs [3:06:13] po [3:06:13] yung [3:06:13] darating [3:06:14] so [3:06:14] so [3:06:15] wala po [3:06:16] tayong [3:06:17] ibabahay [3:06:18] pagbabahayan [3:06:19] pagre-reperan [3:06:20] likewise [3:06:21] as secretary [3:06:21] kung [3:06:22] nandiyan na rilan tayo [3:06:23] we are using [3:06:24] right now [3:06:25] yung [3:06:25] former [3:06:26] Hanjin [3:06:27] that's a [3:06:28] temporary [3:06:29] base [3:06:30] and [3:06:31] understand [3:06:31] we are [3:06:31] paying [3:06:32] so much [3:06:32] na [3:06:33] 1 billion [3:06:34] a year [3:06:36] ba [3:06:36] and [3:06:38] I had [3:06:39] the chance [3:06:39] to go [3:06:40] there [3:06:40] nakita ko [3:06:41] parang [3:06:41] warehouse [3:06:42] lang [3:06:42] and [3:06:42] I don't [3:06:43] think [3:06:43] it's [3:06:43] really [3:06:43] suitable [3:06:44] as a [3:06:44] support [3:06:45] base [3:06:46] to our [3:06:47] frigates [3:06:48] and [3:06:48] other [3:06:48] vessels [3:06:49] so [3:06:50] do you [3:06:51] have [3:06:51] any [3:06:51] other [3:06:52] plans [3:06:52] I think [3:06:54] napurso [3:06:54] natin [3:06:54] yung [3:06:54] Subic [3:06:55] Bay [3:06:55] kasi [3:06:55] it was [3:06:56] really [3:06:56] designed [3:06:57] as a [3:06:58] naval [3:06:58] base [3:06:58] as a [3:06:59] forward [3:07:00] operating [3:07:00] base [3:07:00] and [3:07:01] on [3:07:01] others [3:07:01] so [3:07:02] that [3:07:02] let us [3:07:04] know [3:07:04] so [3:07:04] that [3:07:04] we [3:07:05] can [3:07:05] already [3:07:05] fund [3:07:05] also [3:07:06] include [3:07:07] funding [3:07:07] for [3:07:08] for [3:07:10] these [3:07:11] bases [3:07:11] to be [3:07:12] ready [3:07:12] lalo [3:07:13] na [3:07:13] sa [3:07:13] pag [3:07:13] anticipate [3:07:13] natin [3:07:14] sa [3:07:14] pag [3:07:14] receive [3:07:15] natin [3:07:15] dito [3:07:16] sa [3:07:16] mga [3:07:16] bagong [3:07:16] vessels [3:07:17] wala [3:07:17] pala [3:07:17] tayong [3:07:17] babahayan [3:07:18] so [3:07:18] sige [3:07:19] re [3:07:19] sec [3:07:20] your [3:07:20] honor [3:07:21] i'm [3:07:21] glad [3:07:22] that [3:07:22] you [3:07:22] raised [3:07:22] the [3:07:22] question [3:07:23] two [3:07:25] years [3:07:25] ago [3:07:25] the [3:07:26] president [3:07:26] had [3:07:26] already [3:07:27] proclaimed [3:07:27] certain [3:07:28] areas [3:07:28] of [3:07:28] Subic [3:07:29] outside [3:07:29] of [3:07:30] Hanjin [3:07:31] as [3:07:32] naval [3:07:32] reservation [3:07:33] together [3:07:35] with [3:07:35] Chiquita [3:07:35] and [3:07:36] Grande [3:07:36] Island [3:07:36] so [3:07:39] what [3:07:40] we [3:07:40] are [3:07:40] waiting [3:07:40] for [3:07:40] is [3:07:40] the [3:07:41] initial [3:07:41] funding [3:07:41] for [3:07:42] us [3:07:42] and [3:07:43] what [3:07:44] we [3:07:44] heard [3:07:45] your [3:07:45] honor [3:07:45] Hanjin [3:07:46] is [3:07:47] ready [3:07:47] willing [3:07:47] and [3:07:48] able [3:07:48] to [3:07:48] take [3:07:49] over [3:07:49] the [3:07:50] space [3:07:51] because [3:07:51] of [3:07:51] the [3:07:52] additional [3:07:55] production [3:07:55] to [3:07:56] include [3:07:57] one [3:07:58] co-produced [3:07:59] vessel [3:07:59] initially [3:08:00] for the [3:08:01] Philippine [3:08:01] Navy [3:08:01] which [3:08:02] will [3:08:02] be [3:08:02] a [3:08:02] logistical [3:08:05] supply [3:08:06] ship [3:08:06] that [3:08:06] we [3:08:07] will [3:08:07] co-produce [3:08:08] I [3:08:09] requested [3:08:10] that [3:08:11] 50% [3:08:11] of [3:08:12] the [3:08:12] rights [3:08:14] belong [3:08:14] to [3:08:15] the [3:08:15] Philippine [3:08:15] government [3:08:16] initially [3:08:17] so [3:08:18] that [3:08:18] any [3:08:18] sales [3:08:19] made [3:08:19] abroad [3:08:20] we [3:08:20] have [3:08:21] a [3:08:21] dividend [3:08:21] for [3:08:22] it [3:08:22] in [3:08:24] turn [3:08:24] they [3:08:25] will [3:08:25] take [3:08:25] over [3:08:26] the [3:08:26] whole [3:08:27] space [3:08:28] I [3:08:28] hope [3:08:28] it [3:08:28] comes [3:08:28] to [3:08:29] pass [3:08:29] soon [3:08:29] but [3:08:30] they [3:08:30] have [3:08:31] to [3:08:31] negotiate [3:08:31] of [3:08:32] course [3:08:32] with [3:08:32] the [3:08:34] operator [3:08:36] of [3:08:37] the [3:08:37] area [3:08:37] your [3:08:38] honor [3:08:38] Japan [3:08:41] is [3:08:42] our [3:08:42] closest [3:08:43] ally [3:08:43] in [3:08:43] the [3:08:45] region [3:08:45] and [3:08:45] every [3:08:46] time [3:08:46] we [3:08:46] go [3:08:46] there [3:08:46] we [3:08:47] talk [3:08:48] about [3:08:49] overseas [3:08:50] development [3:08:51] assistance [3:08:52] trade [3:08:52] but [3:08:52] now [3:08:52] they [3:08:53] are [3:08:53] more [3:08:53] concerned [3:08:54] on [3:08:55] the [3:08:55] regional [3:08:55] security [3:08:56] and [3:08:56] I'm [3:08:57] sure [3:08:57] you [3:08:57] know [3:08:57] about [3:08:57] that [3:08:58] since [3:09:00] Abokuma [3:09:01] class [3:09:01] they [3:09:02] will [3:09:02] be [3:09:02] probably [3:09:03] since [3:09:04] Japan [3:09:04] has [3:09:05] been [3:09:05] very [3:09:05] friendly [3:09:05] to [3:09:06] us [3:09:06] compared [3:09:06] to [3:09:07] our [3:09:07] other [3:09:07] allies [3:09:08] I [3:09:09] opened [3:09:11] it up [3:09:11] in our [3:09:12] briefing [3:09:12] that [3:09:13] our [3:09:14] F-16 [3:09:14] target [3:09:15] is [3:09:16] a [3:09:16] MRF [3:09:17] especially [3:09:18] both [3:09:18] squadron [3:09:18] and [3:09:19] support [3:09:20] I [3:09:21] said [3:09:21] maybe [3:09:21] F-2 [3:09:22] from Japan [3:09:23] might be [3:09:25] worth [3:09:25] exploring [3:09:28] F-2 [3:09:29] fighter jets [3:09:30] Mitsubishi [3:09:31] and [3:09:32] Lockheed [3:09:32] Martin [3:09:33] joint [3:09:33] venture [3:09:34] F-16 [3:09:34] but [3:09:36] it [3:09:36] was [3:09:36] produced [3:09:36] in [3:09:37] Japan [3:09:37] and [3:09:37] we [3:09:37] mentioned [3:09:38] that [3:09:38] actually [3:09:38] with [3:09:39] the [3:09:39] defense [3:09:40] minister [3:09:40] and [3:09:41] they [3:09:41] said [3:09:41] they [3:09:41] will [3:09:42] remember [3:09:43] and [3:09:43] they [3:09:43] will [3:09:43] take [3:09:43] consider [3:09:44] so [3:09:44] probably [3:09:45] we [3:09:45] can [3:09:45] also [3:09:45] take [3:09:46] that [3:09:46] to [3:09:46] consideration [3:09:47] may [3:09:47] give us [3:09:48] assistance [3:09:50] Japan [3:09:51] is [3:09:51] extending [3:09:52] OSA [3:09:53] security [3:09:55] assistance [3:09:56] Sige [3:09:57] Sek [3:09:57] Your [3:09:58] Honor [3:09:58] we're [3:09:59] exploring [3:09:59] all [3:10:00] avenues [3:10:00] particularly [3:10:02] F-2 [3:10:02] that's [3:10:04] also [3:10:04] a [3:10:04] licensed [3:10:05] U.S. [3:10:06] platform [3:10:06] that [3:10:07] they [3:10:07] improved [3:10:07] so [3:10:08] it [3:10:08] has [3:10:08] to [3:10:08] be [3:10:08] a [3:10:08] tripartite [3:10:09] negotiation [3:10:10] they [3:10:11] enhanced [3:10:12] it [3:10:12] for [3:10:13] their [3:10:14] own [3:10:14] purposes [3:10:15] and [3:10:16] I [3:10:16] think [3:10:17] they [3:10:17] have [3:10:17] to [3:10:17] complete [3:10:18] the [3:10:18] final [3:10:18] legislation [3:10:19] allowing [3:10:21] it [3:10:23] and [3:10:23] there [3:10:23] are [3:10:24] other [3:10:24] agreements [3:10:25] we [3:10:25] have [3:10:25] to [3:10:25] fulfill [3:10:26] in [3:10:27] order [3:10:27] for [3:10:28] us [3:10:28] to [3:10:28] be [3:10:28] a [3:10:29] full [3:10:29] recipient [3:10:29] of [3:10:30] technologically [3:10:32] advanced [3:10:32] equipment [3:10:33] which [3:10:33] is in [3:10:33] the [3:10:33] pipeline [3:10:34] Your [3:10:34] Honor [3:10:34] from [3:10:35] that [3:10:35] they [3:10:35] are [3:10:36] a [3:10:36] favored [3:10:36] partner [3:10:37] like [3:10:37] just [3:10:38] like [3:10:38] Korea [3:10:38] for [3:10:39] deterrence [3:10:40] capabilities [3:10:41] likewise [3:10:42] Your [3:10:42] Honor [3:10:42] and [3:10:43] Australia [3:10:43] and [3:10:43] Canada [3:10:44] too [3:10:44] In [3:10:47] addition [3:10:47] to [3:10:48] the [3:10:48] budget [3:10:50] for [3:10:50] 2027 [3:10:51] the [3:10:52] department [3:10:53] is [3:10:53] projected [3:10:54] to [3:10:54] generate [3:10:55] something [3:10:55] like [3:10:55] 2.5 [3:10:56] billion [3:10:57] pesos [3:10:58] in [3:10:58] off-budget [3:10:59] revenues [3:11:00] upon [3:11:01] the [3:11:01] other [3:11:01] hand [3:11:01] you [3:11:02] have [3:11:02] to [3:11:03] incur [3:11:03] 2.9 [3:11:05] billion [3:11:05] in [3:11:07] expenditures [3:11:10] so [3:11:11] what [3:11:12] are [3:11:12] the [3:11:12] specific [3:11:13] sources [3:11:13] of [3:11:14] the [3:11:14] off-budget [3:11:15] revenues [3:11:17] your [3:11:17] honor [3:11:18] those [3:11:18] are [3:11:18] trust [3:11:18] receipts [3:11:19] from [3:11:20] revenues [3:11:22] of [3:11:22] that [3:11:23] they [3:11:24] receive [3:11:24] from [3:11:25] land [3:11:27] that [3:11:28] they [3:11:28] use [3:11:28] golf [3:11:28] course [3:11:29] fees [3:11:29] etc [3:11:30] concession [3:11:31] fees [3:11:32] concessionaire [3:11:33] fees [3:11:33] so [3:11:34] constant [3:11:35] ba [3:11:35] ito [3:11:35] 2.5 [3:11:36] billion [3:11:36] constant [3:11:37] sir [3:11:37] ganong [3:11:38] level [3:11:38] at [3:11:39] ano [3:11:40] sir [3:11:40] ang [3:11:40] expenditures [3:11:41] niyan [3:11:42] normally [3:11:42] is to [3:11:43] fund [3:11:43] the [3:11:43] infrastructure [3:11:44] where [3:11:44] this [3:11:45] is [3:11:45] so [3:11:45] lugi [3:11:46] generated [3:11:47] maintenance [3:11:48] yung [3:11:49] the [3:11:50] gap [3:11:51] yung [3:11:52] deficit [3:11:52] na [3:11:53] 401 [3:11:54] million [3:11:54] pesos [3:11:55] that's [3:11:57] lugi [3:11:57] sa revenues [3:11:59] versus [3:12:00] maintenance [3:12:01] I will [3:12:02] find out [3:12:02] sir [3:12:02] kasi [3:12:03] ano [3:12:04] pagkagayon [3:12:14] saran na lang [3:12:14] natin [3:12:15] yung [3:12:16] yung [3:12:16] golf course [3:12:17] kung lugi pa [3:12:20] tayo [3:12:20] sa pandilig [3:12:21] no [3:12:22] sir [3:12:22] trust [3:12:23] liabilities [3:12:24] pala [3:12:24] for [3:12:25] electricity [3:12:26] costs [3:12:27] and the [3:12:27] like [3:12:27] that [3:12:28] are [3:12:28] not [3:12:28] constant [3:12:28] so [3:12:30] it's [3:12:31] matching [3:12:31] exercise [3:12:33] sir [3:12:34] palagay [3:12:34] kung [3:12:34] hindi [3:12:34] naman [3:12:35] po [3:12:35] sir [3:12:35] malulugi [3:12:36] kung [3:12:37] i-match [3:12:37] lang [3:12:37] properly [3:12:38] yung [3:12:39] nasa [3:12:40] treasury [3:12:41] function [3:12:41] na nila [3:12:42] yan [3:12:42] kasi [3:12:42] kung [3:12:43] tumasang [3:12:43] moral [3:12:43] rates [3:12:44] tasan [3:12:44] nyo [3:12:44] rin [3:12:45] yung [3:12:45] fees [3:12:45] mahirap [3:12:47] po [3:12:47] sir [3:12:47] gawin [3:12:47] yun [3:12:47] lalo [3:12:48] na [3:12:48] magre-reklamuhan [3:12:51] tayo [3:12:52] pero [3:12:53] kung [3:12:53] you're [3:12:54] operating [3:12:54] at [3:12:54] loss [3:12:55] parang [3:12:55] false [3:12:57] economy [3:12:57] naman [3:12:57] yata [3:12:58] yes [3:12:58] sir [3:12:58] i [3:12:59] agree [3:12:59] a hundred [3:13:00] percent [3:13:00] and [3:13:01] i'm [3:13:01] glad [3:13:01] sir [3:13:01] you [3:13:02] made [3:13:05] the [3:13:05] issue [3:13:07] to me [3:13:08] and [3:13:08] it is [3:13:09] also [3:13:09] a [3:13:09] function [3:13:09] of [3:13:10] that [3:13:11] before [3:13:12] there [3:13:13] was [3:13:13] really [3:13:14] a [3:13:14] plan [3:13:15] of [3:13:16] making [3:13:16] military [3:13:17] basis [3:13:18] tourism [3:13:18] revenue [3:13:20] destinations [3:13:21] for [3:13:21] example [3:13:22] golf course [3:13:23] tourism [3:13:23] but [3:13:23] we are [3:13:24] constrained [3:13:24] to stop [3:13:25] that [3:13:25] practice [3:13:26] now [3:13:26] because [3:13:27] of [3:13:27] base [3:13:27] security [3:13:28] issues [3:13:29] so [3:13:30] naka [3:13:30] apekto [3:13:30] din po [3:13:31] yung [3:13:31] increase [3:13:32] na [3:13:32] higpit [3:13:32] dito [3:13:33] sa [3:13:33] operations [3:13:34] but [3:13:34] we have [3:13:35] to [3:13:35] scale [3:13:35] it [3:13:35] appropriately [3:13:37] for [3:13:38] a more [3:13:38] sustainable [3:13:39] at least [3:13:39] zero [3:13:40] outflow [3:13:41] matching [3:13:42] budget [3:14:16] 90 plus lang yung nadagdag, na-recover. [3:14:20] So ano yung na-sacrifice dito sa mga in terms of PAPs ng Philippine Army? [3:14:25] By the way, ano na ba yung ratio ng internal versus external threat? [3:14:31] Medyo nag-iba na, no? [3:14:34] Hindi, sir. Kasi yung internal, although hindi lumalawak yung preserve the gains, sir, [3:14:40] kailangan mo magbabad dun sa lugar. [3:14:41] For example, dun sa BARM election, sir, malaki ang expenditure po dyan. [3:14:46] At saka HADR din po sa internal. [3:14:49] How about CPP and PA? [3:14:51] Bawas na, bawas na po. [3:14:53] It's more confined, sir, sa regions, sa area ng 8th and 9th infantry division. [3:15:02] So are we now at 50-50 ratio, external versus efforts, yung concentration of forces and all, logistics, etc.? [3:15:10] Sir, for the Army, I think it's still about 70-30, 70 internal pa rin. [3:15:18] While with the Air Force and the Navy, it's 50-50. [3:15:25] Okay, some specifics, ano? [3:15:28] Yung sa government arsenal, while yung inadapt sa NEP, nabawasan ng nire-request niyo versus nire-request ng 278 million pesos. [3:15:39] Pero yung house managed to augment yung government arsenal with 285 million. [3:15:46] And meron ditong items, yung 60 million metallic link machine. [3:15:54] Pero ano no, 345 pa lang dinagdag ng house. [3:15:57] Yung 285, ito yung water supply project. [3:16:02] Ano yung production process na nagdi-depende dito sa water supply project? [3:16:08] Boyet. [3:16:08] I will let Director Amano. [3:16:11] Sir, Your Honor, for the processing of the metallic products. [3:16:18] And you need stand-alone water supply? [3:16:21] It will be an additional 1 million capacity, 1 million gallon capacity for the water source, Your Honor. [3:16:30] Yung lack of water resources niyo, ito rin ba yung reason why short kayo sa production? [3:16:40] No, sir. [3:16:40] Siya nakalagay dito, ano eh? [3:16:42] You produced only 38.37 million rounds against a 60 million target in 2025. [3:16:52] Tapos 870,000 rounds in the first semester. [3:16:55] The deficit, Your Honor, is for the availability of raw material inputs, propellants, and chemicals for primer production, Your Honor. [3:17:10] Ang ginagawa ba ng government arsenal? Puro sa rounds of ammunition lang? [3:17:15] Yes, Your Honor. Small arms ammunition. [3:17:18] Walang ibang production dyan except ammunitions? [3:17:22] Yes, Your Honor. [3:17:22] Sir, that's why I explained earlier, the government arsenal was confined to small arms ammunition. [3:17:40] At doon sa aming leveling this year, kung dito tayo koconcentrate, contrary ito sa experience ng conflict mula First World War hanggang Second World War, [3:17:58] lumiliit ang expenditure ng small arms vis-a-vis precision arms. [3:18:03] So, ang roadmap po ni... [3:18:07] I'm interested in the roadmap. [3:18:09] Yes, sir. It is actually to work with our allies for increased technological capacity on indirect fire initially and the hybrid weaponry that have a technological advantage. [3:18:29] Doon naman po sa kaniyang infrastructure program, actually more importantly, yung hindi pa napondohan, yung electrical system niya. [3:18:38] Kasi po, 1960 pa yung mga transformer doon na dinonate pa ng Japanese government. [3:18:46] Hanggang ngayon po, gumagana. Pero the electrical production... [3:18:49] Reparations pa yun? [3:18:50] Yes, sir. [3:18:51] Secondly, secondly po, nasunugan po siya ng primer production. [3:19:00] Ang replication po nito, ngayon lang ano, nangyari. [3:19:04] Pangalawa po, wala pang emergency hospital doon sa loob na kinakailangan po ng labor regulations natin. [3:19:11] So, the infrastructure development sa area ay importante dahil po, ito ay sa plano nung araw na i-pre-privatize ito na hindi naman po po pwede. [3:19:26] Kaya nga, arsenal po ito, parang mint ito eh. [3:19:30] May residual capacity dapat ito for our reserves. [3:19:34] We also have a... it was causing a lot of moral problems also with our rank and file na hanggang dyan na lang yung ginagawa nila. [3:19:50] So, now there is a road map, sir. [3:19:52] As a matter of fact, sinama namin sa FMF yung additional line mo. [3:19:56] Yung sa 7.62 ammunition po, kailangan din po natin yung link at saka yung upgraded link na maire-reload po yung minigun po na bago sa mga helicopter po natin na napakataas ng expenditure rate po yung parang gatling. [3:20:19] Yung special provision that you are requesting to be retained, I think the house already included that in the GAB. [3:20:30] Ando na yata eh. Special provision number two. [3:20:34] Yes, sir. [3:20:35] So, I just hope na you will notify Congress before a commitment is made. [3:20:41] As a matter of course, di ba? [3:20:42] Yes, sir. [3:20:44] Pati yung pag-monitor ng mga contingent liabilities, etc. [3:20:48] Yes, sir. [3:20:49] Yes, sir. We will notify. [3:20:50] Please make sure na ma-notify ang Congress. [3:20:52] Thank you. Thank you, Mr. Chairman. [3:20:53] As Secretary, also, yung ano, you know, lalo na sigo, we can ask the, probably our army, yung drone development, do we have, I'm sure that we have that already. [3:21:08] I had the chance to visit Camp Kapinpin a few months ago and they demonstrated na meron silang ginagawang mga drone, locally manufactured there in the camp itself. [3:21:19] So, sabi ko parang, it's, it's worth funding, Secretary, because I think that this will be the new, ganito na yung magiging, ano, natin, no, wave of the future. [3:21:30] So, probably, you can, probably expound if, ano, natin, baka naman, kundin man classified. [3:21:36] Yes, Your Honor. [3:21:37] The thing is, with a more bigger scale, we will need to produce it. [3:21:43] The problem with the developmental drones are these are assembled and sometimes the parts come from countries which are not reliable. [3:21:55] So, for the conception stage, mabuti, magaling ang Pilipino dun sa production at saka scaling, dun tayo nagkakaproblema sa processing na precision at sa precision at sa tolerances, Your Honor, pati raw materials supply chain. [3:22:20] So, pagdating po sa amin, sa level namin, hindi nila ma-scale. [3:22:28] At secondly ho, yung GHQ is very busy now in the multi-level, multi-unit, depending on the use of the unmanned system, dun sa command and control and operational doctrines. [3:22:51] Kasi, at one stage, sa Army po, sa Navy, iba-iba ang gamit. [3:22:59] Pero at the end of the day, pag nagiging mas lethal ito or mas may impact ito, at anytime, kailangan po may accountability ito sa GHQ. [3:23:09] Kaya, yung pag-employ nito, pag lumalaki, kailangan po mas maagap ang command and control dito. [3:23:21] Kasi po, maaring makompromiso ang system. [3:23:27] I was just surprised and also impressed. Ito yung itisigawa ng developed here. [3:23:36] So, probably it's worth exploring kung talang kinakailangan tulungan. [3:23:40] Probably we can also fund it para na matulungan natin. [3:23:43] Because sabi nga nung cam commander at the time, this would be the wave of the future na sa mga battles kasama na rin po talaga yung drone development. [3:23:53] Yes, Your Honor. We are taking a serious, and it's not a serious look, we're implementing it on a scalable basis, Your Honor. [3:24:05] Likewise, na sekretary, naging ano ka rin na subject na I know that you have been very firm in standing up for our sovereignty. [3:24:15] Na madalas, subject na rin kayo sa attacks. Ang nakakalungkot lang na may mga lang Pilipino na hindi ko alam bakit. [3:24:25] Ang kalaban naman natin dito, China, dapat lahat tayo nagkakaisa doon. [3:24:29] Pero meron silang makakampi dito. [3:24:32] Like recently, nung nakasaguta ko yung Chinese ambassador, actually pinapractice ko lang yung Mandarin natin. [3:24:40] Nakalimutan ko na kasi matagal tayong gumraduate galing sa Iber. [3:24:44] Tsaka baka hindi niya naintindihan na yung West Philippine CA ate. [3:24:48] Kaya in Chinese, sinabi ko sa kanya na West Philippine CA is ours. [3:24:52] And nako, in 7 minutes, 500 comments ka agad. [3:24:57] So, do you think itong mga ito, sekretary, part of ng China ito, [3:25:04] na meron silang propaganda machine really to create siguro itong disunity among us? [3:25:12] Meron po talaga. Meron po talaga. [3:25:15] At admitido naman po sila na part of the United Frontworks po nila na pillar ng kanilang Communist Party. [3:25:24] Ito po ay hindi state activity kung hindi party activity ito. [3:25:30] Katulad po ng People's Liberation Army, hindi parehong organization po yan sa armed forces. [3:25:38] Because the PLA is not a sovereign state arm. [3:25:43] It is a Communist Party of China arm. [3:25:47] Separate siya. [3:25:49] So, talaga po lahat ng galaw nito ay motivated by their Central Committee o Standing Committee. [3:25:56] So, ang propaganda is the reason also for being of the People's Republic of China. [3:26:05] It was born through subversion when, you know, espionage subversion. [3:26:14] And as with a lot of communist governments, [3:26:20] although, yung iba po nagpalit ng anyo, [3:26:24] what is, what we observe po dito, [3:26:30] na dito sa China ang pinakamatinding regime legitimacy support operations [3:26:36] ang kanilang foreign policy. [3:26:39] So, talaga pong part and parcel ng kanilang taktika. [3:26:43] And makikita naman po natin eh na with a straight face sasabihin that is ours, [3:26:50] na wala po silang karapatan. [3:26:53] Ngayon, ang pagka ho hindi tayo manindigan laban sa narrative na yan, [3:26:58] manonormalize po yan. [3:27:01] Manonormalize yan. [3:27:02] Sasabihin nila, tinanggap nyo na eh, wala kayong imig. [3:27:05] So, mabuti na ho manindigan tayo kaysa sa mawala pa sa atin by default. [3:27:10] Yes, Secretary, we commend you for standing up doon sa Singapore, no? [3:27:15] Nangyayarin, when you were, sa Seoul ba yun? [3:27:17] Singapore. [3:27:18] Singapore and Seoul, when you were passed with this question, no? [3:27:23] Na talagang obviously it was planted. [3:27:25] So, we commend you for standing up. [3:27:28] Sir Chairman, as an aside, ano? [3:27:30] Kaya siguro subject ng troll attack si Secretary Gibbo [3:27:34] kasi wala pa nakakamatch doon sa mga fora na naatina niya. [3:27:38] Wala pa nakakamatch doon sa kanyang brilliance. [3:27:42] So, doon lang sila bumabawi by way of troll attacks, etc., etc. [3:27:48] So, yeah, second demotion in commending you for standing up [3:27:53] in a manner na talagang hindi na maribat eh yung ati position. [3:27:59] Thank you. [3:27:59] Sir, dahil nung nag-review ako sa bar, [3:28:02] isa kayo sa mga advisor ko noong panahon na yun, [3:28:06] ito'y part lang ng legal training din natin sa pag-rebat [3:28:10] na si Sen. Laxon et al. [3:28:15] Kasakasama ko noong nagre-review ako noong araw [3:28:18] at marami ako natutunan sa kanila. [3:28:21] Actually, [3:28:22] yun ang tiyatawag na Mutual Admiration Club, Mr. Chairman. [3:28:26] Masundan ko lang ho sa Sen. Laxon, Mr. Chairman. [3:28:29] Napanood ko yung dalawang forum sa Singapore and sa Seoul. [3:28:37] And after that, in Pilipinas, nalagay sa mapa eh. [3:28:44] Because that event was a defense event attended by many countries. [3:28:50] So, at naging very clear and sober as well as rational yung ating position. [3:28:56] And we thank the Secretary for delivering that to the world. [3:29:01] Kasi hindi lang naman kami yung audience, [3:29:03] patang audience yung buong mundo. [3:29:05] So, and the explanation was very clear. [3:29:08] And yet sober. [3:29:09] Hindi natin naman, hindi naging bastos, [3:29:13] hindi naging walang galang, [3:29:15] but very rational. [3:29:16] So, we thank the Secretary for that message. [3:29:19] Thank you, Your Honor. [3:29:20] But I must give credit to the guidance of the President, to us. [3:29:24] And secondly, to the collective support of the whole DND and AFP family. [3:29:31] That's where, you know, we have consistent messaging. [3:29:36] We have the agencies under and the department are cohesive [3:29:40] and united in our stand for the West Philippine Sea. [3:29:47] So, I mean, the expression in Seoul was instinctive on my part. [3:29:53] Pero you cannot avoid also that it is based on my experience [3:29:58] taking guidance from the President with our experience with the Senate [3:30:06] and with our, with our, with each and everybody. [3:30:11] I'm just the expression of the collective voice of the institution, Your Honor. [3:30:17] Credit is also due to those individuals and institutions I have mentioned. [3:30:24] And we commend you again, Secretary, for that, for standing up for our sovereignty. [3:30:30] Nakakalungkot lang, no, na may mga ilan dito. [3:30:33] Nakakatawa, China yung ano natin dito. [3:30:36] Ang ating katunggali. [3:30:39] Pero sandali lang. [3:30:40] Ang bilis na may ilang Pilipin ano rito, mga troll. [3:30:43] Dinedepensa pa yung China, tayo pa yung inaano. [3:30:47] Itong mga ito, dapat bordering on ano ito. [3:30:50] Treso na ba ito siguro? [3:30:52] Diba? [3:30:53] Sabi ko, mas masahol ba ito sa ano? [3:30:56] Sa kalaban, no? [3:30:57] Yung pagiging trader sa sariling bayan. [3:31:00] So again, we commend you for that, Secretary Teodoro. [3:31:04] So, yun na lang po, siguro last before we wrap up, [3:31:10] yun pong we also noticed that in the, [3:31:13] may budget na nawala, no, doon sa ating disaster response, no? [3:31:19] And considering that there is an pending El Niño coming, no? [3:31:26] Next year, itong Super El Niño, 9 point, [3:31:29] may effect ba yung ano, tanong ko lang, [3:31:31] 9.4 billion sa Calamity Fund na natanggal po sa inyo. [3:31:35] I am just worried that we have to be prepared for this. [3:31:42] So, ano po mag-i-efect na ito? [3:31:43] Hindi ko nga alam kung saan ito nangyari. [3:31:45] Whether it was brought to the Department of Agriculture, [3:31:48] baka naman di diretso nila. [3:31:50] Pinakita rin kasi kami rin na direct assistance to farmers and fisher folk. [3:31:55] So, your position, Secretary? [3:31:58] Your Honor, it will not affect because, as the Senate President knows, [3:32:04] as far as last year is concerned, [3:32:06] I said that the Calamity Fund, [3:32:09] it's best downloaded to line agencies where we do the coordination. [3:32:15] However, for some projects, [3:32:19] for example, the integrated logistics centers for DSWD DOH [3:32:24] in select areas where, [3:32:29] because right now, [3:32:31] the warehouses, for example, [3:32:33] your Honor, [3:32:34] are in Region 3, for example, [3:32:36] the two repacking areas [3:32:38] of the DSWD, [3:32:41] I was informed, [3:32:42] were flooded. [3:32:43] So, I talked to Senator Gatchalayan [3:32:48] and offered an area in Fort Magsaysay [3:32:52] for the repacking beside the runway, [3:32:56] which is an ideal logistics location. [3:33:00] So, just to fund the ideal logistics locations, [3:33:06] whether it be DSWD or OCD, [3:33:09] since it will be done also in military bases [3:33:18] because of the air transport [3:33:20] and the sea transport facilities, [3:33:23] that's the only requirement, Your Honor. [3:33:27] Because now, [3:33:28] if we have to augment in the Visayas in Mindanao, [3:33:32] but it's good that there is already a supply [3:33:35] by Secretary Sherwin, [3:33:41] Secretary Rex Abinitio, [3:33:46] so we just have to fill the gap. [3:33:50] But normally, before, [3:33:51] this used to emanate from Metro Manila yet, [3:33:54] which is not logistically ideal. [3:33:57] But the downloading to other agencies, [3:34:00] that's their function, Your Honor, [3:34:01] why we do the coordination. [3:34:02] With that, before we end, [3:34:08] liwanagin lang natin, [3:34:10] hindi natin ina-attack ang Chinese people. [3:34:13] Wala tayong bad blood sa kanila. [3:34:15] I came from a Chinese school, [3:34:17] sa Saber School, [3:34:18] pareho kami ng Secretary. [3:34:20] We both grew up with our Chinoy friends, [3:34:24] batchmates and schoolmates, [3:34:25] and we still love our Chinese friends. [3:34:28] And recently, I also became an ambassador [3:34:29] of a Chinese tire manufacturing company. [3:34:32] I use a Chinese vehicle. [3:34:33] Well, so katulad nyo, [3:34:35] marami rin akong gamit [3:34:36] na gawang at galing China. [3:34:37] We welcome the people [3:34:38] from all backgrounds, [3:34:40] and we have valued the friendships [3:34:41] and relationships [3:34:42] we have built over this. [3:34:43] Pero malina po ang ating paninindigan, [3:34:46] ang ating values. [3:34:46] Again, a question natin, [3:34:48] ay ang aksyon ng Chinese government, [3:34:50] sa ating pong West Philippine Sea, [3:34:51] and I'm sure yan din po [3:34:53] ang pinaglalaban ng ating Secretary [3:34:55] and the whole D&D family, [3:34:57] hindi ordinary mamamayang Chinese. [3:34:58] Yes, we can respect the Chinese people [3:35:01] without turning a blind eye [3:35:02] to the actions of their government. [3:35:05] Yung gobyerno naman nila po [3:35:06] ang ating pong, [3:35:07] yung kanilang ginagawa [3:35:09] sa ating pong teritoryo, [3:35:10] sa ating manging isda, [3:35:13] at syempre sa ating Coast Guard, [3:35:14] sa ating Navy. [3:35:15] Yan ang ating hindi po tayo pabor. [3:35:17] We stand for mutual respect, [3:35:19] but we will also stand firm [3:35:20] in defending our country's sovereignty [3:35:22] and the dignity of our people. [3:35:24] We also reiterate our stanch support [3:35:26] for the D&D and the Armed Forces [3:35:29] in fulfilling a sworn mandate [3:35:31] to defend our national interests. [3:35:34] With the consent of our Senate President, [3:35:36] Wingat Chalyan, [3:35:37] and Senator Ping Naxon, [3:35:38] the budget of the Department of National Defense [3:35:40] is now deemed submitted [3:35:41] for the plan and raised consideration [3:35:44] subject to discussion [3:35:45] and possible budgetary adjustments. [3:35:47] The committee chair would like to thank everyone, [3:35:50] especially our esteemed resource persons, [3:35:52] for actively participating in today's hearing. [3:35:55] With that, this briefing is hereby suspended. [3:35:58] Congratulations!