They are supposed to pay it out to families of the soldiers. But they skirt around that by simply not retrieving their dead and wounded from the battlegrounds, and marking the soldiers as unknown/missing, thus deferring the payments indefinitely.
There have been multiple reports of wives/widows trying to find out what happened to their husbands, or at least to collect the money, with the military admin stonewalling them.
They don't seem to be getting destroyed, though...