Summary

SAI Colombia conducted an audit of the defense sector for the period from 2024 to 2026. According to the auditors, the defense sector budget showed an upward trend. However, structural risks were identified: insufficient investment in innovation, fiscal risks related to the Armed Forces' pension system whose liabilities could exceed 140 trillion Colombian pesos (39 billion USD), as well as risks related to aircraft insurance. According to the SAI's assessments, only 19% of the Colombian Air Force aircraft have insurance coverage. The C-130 Hercules military transport aircraft, which crashed on March 23, 2026 in the municipality of Puerto Leguízamo (Putumayo Department) did not have a valid insurance policy at the time of the accident. Auditors express concern regarding the consequences that the lack of insurance coverage may have on the financial compensation mechanisms for the crew members and other military personnel affected by the accident. SAI recommended strengthening insurance coverage for strategically important assets, especially aircraft exposed to the highest operational risk; increasing investment in maintenance, modernization and risk management; implementing planning mechanisms that ensure a balance between operational expenses and long-term investments; and taking measures aimed at mitigating the identified fiscal risks, particularly in pension system.