Memorandum Circular No. 116




MALACAÑAN PALACE MANILA BY THE PRESIDENT OF THE PHILIPPINES [ Memorandum Circular No. 116, May 25, 1967 ] ENJOINING COMPLIANCE WITH GENERAL CIRCULAR NO. 1, S. 1967, OF THE DEPARTMENT OF GENERAL SERVICES REQUIRING IMMEDIATE PAYMENT OF SUPPLIES MATERIALS AND EQUIPMENT PROCURED FOR THE GOVERNMENT. There is quoted below, for the information and compliance of all concerned, General Circular No. 1dated February 21, 1967, of the Department of General Services: “GENERAL CIRCULAR NO.1 February 21, 1967 “SUBJECT: IMMEDIATE PAYMENT OF SUPPLIES, MATERIAL AND EQUIPMENT PROCURED FOR THE GOVERNMENT. “TO: Heads of Departments, Chiefs of Bureaus, Offices, Agencies and Instrumentalities and all concerned. “Not a few suppliers of the government, especially those dealing with the Bureau of Supply Coordination, this Department, have repetitiously registered their complaints with this Office to the effect that payment of supplies, equipment and materials have been unnecessarily delayed by the requisitioning agencies. It has been rightly represented that their invested capital which are normally channeled to other investment avenues in the course of their business operations are tied up. It has been claimed also that additional expenses are incurred by then in terms of manhours, time and money in affecting collection of their rightful claims. Obviously, suppliers invariably jack up their prices allegedly to pay up for the certain delay.1âшphi1 In view of the foregoing, and in line with the campaign of the present administration to peg down prices of commodities procured for the use of the government, it is enjoined that heads of departments, chiefs of bureau, offices, agencies and instrumentalities and those other officials and employees concerned in the payment of claims effect immediate payment of suppliers or at least ten (10) days from acceptance of delivery of supplies, materials and equipment procured for their use. The Bureau of supply Coordination may be constrained to adopt a more drastic policy in procuring for governmental agencies and instrumentalities who have unjustifiably defaulted in the payment of or in any manner unjust fully delayed their obligations to government suppliers.” By authority of the President: (SGD.) RAFAEL M. SALAS Executive Secretary May 25, 1967 The Lawphil Project - Arellano Law Foundation