Auditors stressed that "a complete, updated and accurate" individual SL was vital in the computation of the members' refund and its corresponding interest which is required in compliance to the abolition of the AFP-RSBS.
Funding anomalies have been discovered in the past in the way the AFP-RSBS handled the contribution of AFP members that prompted then President Benigno Aquino III to order its abolition in 2016.
COA said the AFP-RSBS, which was then managed by retired AFP officials, has failed to "discharge its mandate" as it failed to pay "a single peso for retirement benefits of the retiring AFP personnel.
Reacting to the audit observations, the AFP-RSBS board of liquidators assured state auditors that refund of contributions will be completed within three years.
The current objective under the liquidation plan is for the AFP-RSBS to raise P16 billion to refund the members contributions by December 31, 2019.
GDI said it discovered that the property had been transferred by MDC to AFP-RSBS. It filed a case for reconveyance before the Batangas City RTC.
AFP-RSBS, on the other hand, claimed that as part of its business undertakings, it entered into a joint venture with AG&P for the construction and marketing of a 28-storey condominium in Binondo, Manila, named as Chinatown Steel Towers, Inc.
RGVDC also executed a deed of assignment transferring and assigning all its rights and interests over the shares of stock with MDC to AFP-RSBS.
Thus, AFP-RSBS said that the deed of assignment was in effect a corporate swap, whereby CSTI would hand over all of its shares of stocks comprising of 120 condominium units to RGVDC in exchange for the latter's right and interest in MDC to AFP-RSBS, which consists of all its shares of stocks including the subject property.
"Had AFP-RSBS carefully examined the documents handed over by RGVDC, it would have easily discovered that the latter was not able to comply with its obligations to GDI, which would have prompted AFP-RSBS to inquire into the title of RGVDC as regards the subject property," the CA explained.