MANILA, Philippines ? Leasing out the Philippine Navy headquarters and other military assets to private corporations is a good approach to bankroll the long delayed modernization of the Armed Forces, a freed renegade soldier said Friday.

But former Marine Colonel Ariel Querubin warned President Benigno Aquino III of possible irregularities that may arise from the proposed government-private sector partnership that Mr. Aquino bared during his first State of the Nation Address last Monday.

?It?s a good thing that the President did not want the BCDA [Bases Conversation and Development Authority] to handle the projects,? Querubin told the Philippine Daily Inquirer after he visited detained fellow renegade military leader, Senator Antonio Trillanes IV at Camp Crame.

Given the limited government budget for the Armed Forces, Querubin said the government must look for ?non-traditional? funds to finance the procurement of new military hardware.

?In my own opinion, it [leasing of military properties] would be beneficial to the military,? he said in Filipino.

Arrested over his role in the 2006 Marine standoff in Makati City, Querubin was released from detention on Wednesday after he was granted with provisional liberty by acting Armed Forces chief Lieutenant General Ricardo David Jr.