COA report said, the Government Arsenal is still using 12 and 39 year-old ammunition producing machine due to a dispute with its foreign suppliers.
Even the modernization program is in place, The Government Arsenal(GA) is still using decades-old machines to produce ammunition, according to COA report.
In its 2015 audit report released on June 21, COA revealed that the GA is still using 268 ammunition-producing machines aged 12 and 39 years old due to to a dispute with its suppliers.
COA said that the GA, which is mandated to supply bullets to the Armed Forces of the Philippines and Philippine National Police, is found to have decreased operational efficiency due to this issue.
In 2012, the GA ordered P336-million worth of machinery from Waterbury Farrel, a division of Magnum Integrated Technologies Incorporated of Canada, to improve its production of ammunition.
Out of 5 machine purchased, 3 P72.72 million multi-station bullet assembly machine, and two case manufacture and cartridge assembly equipment worth P168.43 million are yet to be delivered.
The supplier reportedly withheld delivery as that GA has not given full payment on the first delivery.The machinery in the initial delivery were found to be non-compliance with the contract specifications, forcing the GA to stop paying the supplier.
The operational capacity of the machines of 23 million per year has failed to meet the expected target of 30 million pieces of bullets thus, the Government Arsenal resorted to importation of additional components to meet its obligations, COA stated in its audit report.
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