Memorandum Circular No. 95-A




MALACAÑAN PALACE MANILA BY THE PRESIDENT OF THE PHILIPPINES [ Memorandum Circular No. 95-A, January 17, 1967 ] PRESCRIBING THE POLICY REGARDING THE GRANT OF ALLOWANCES TO CHAIRMEN AND MEMBERS OF BOARDS OF DIRECTORS OF GOVERNMENT CORPORATIONS. It has been observed that chairmen and directors of government-owned or controlled corporations are now allowed transportation and representation allowances, the amounts of which vary depending on the discretion of their respective Boards, in accordance with rates fixed by said Boards and approved by the corresponding department heads concerned. This unwholesome situation has been mainly due to the absence of a general policy on the matter. To remedy this iniquitous setup and in order to establish a uniform rate of allowances for all chairmen and members of governing boards of corporations owned or controlled by the Government, the following policy on the grant of said allowances is hereby prescribed: 1. Government corporations shall be classified into two categories, namely, the financial institutions, consisting of the Central Bark of the Philippines, the Philippine National Bank, the Development Bank of the Philippines, the Social Security System and the Government Service Insurance System, to constitute the first category; and other corporations not mentioned above, to fall under the second category. 2. In the case of the government financila institutionals above enumerated (first category), Board members thereof may be granted transportation and representation allowances ranging from P500 to, but not exceeding, P1,000 per month. For government corporations other than finacial institutions (second category), Board members may be granted transportation and representation allowances ranging from P150 to, but not exceeding, P500 per month. Chairmen thereof may be allowed like allowances from P500 but not more than P750 per month. 3. In accordance with Republic Act No. 2254, while the general manager is made ex officio vice-chairman of the board of directors of his corresponding government corporation and as such may be entitled to all emoluments and privileges as board member, he shall be entitled to only one set of allowance either as general manager or as member of the Board. 4. The above allowances (transportation and representation) do not apply to full-time chairmen and members of the Board, as their compensations are expressly provided for by their respective charters or by the Appropriation Act (e.g., Land Bank, DBI). Strict compliance with the policy prescribed herein is hereby enjoined.1âшphi1 By authority of the President: (SGD.) RAFAEL M. SALAS Executive Secretary January 17, 1967 The Lawphil Project - Arellano Law Foundation