MANILA, April 21 (Reuters) - The Philippine military on Thursday removed the head of its logistics division as an inquiry began into an alleged overpriced petrol deal, the latest graft case to hit the scandal-tainted security forces.
The 130,000-member armed forces have been struggling to improve their image after lawmakers uncovered large-scale graft involving some retired generals who were found to have acquired assets using military funds.
General Eduardo Oban, military chief, said he had relieved Commodore Teddy Pan from his post as head of logistics while an investigation is under way to determine facts in the purchase of overpriced petroleum, oil and lubricant early this year.
"It is an accepted practice in the military establishment to relieve the commander of a unit or office being investigated to pave the way for an impartial and honest investigation," Oban told reporters, promising a "fair and just" inquiry.
Oban said the military consumed about 150 million pesos (${esc.dollar}3.4 million) worth of petrol and lubricants every quarter, but auditors had discovered that it had spent about 400 million pesos for the first three months of 2011.
Separately, the military's former budget officer had filed a complaint with the justice department against seven generals, including one active, and 10 other officers for allegedly siphoning off nearly 2.5 billion pesos earmarked for soldiers' training and salaries to their personal bank accounts.
The scandals have affected the morale of soldiers fighting two long-running insurgencies that have killed 160,000 people, displaced 2 million and stunted growth in this poor but resource-rich Southeast Asian nation. [ID:nSGE725008]
Last month, the army was also grappling against a human rights furore after a video was posted on the Internet showing half-naked cadets being beaten with sticks during drills. [ID:nSGE72L03L]
The 10-month government of President Benigno Aquino has put more emphasis on fighting corruption in his medium-term agenda to implement reforms and cut poverty. (${esc.dollar}1 = 43.350 Philippine Pesos) (Reporting by Manny Mogato; Editing by Alex Richardson)
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