Memorandum Circular No. 793




MALACAÑAN PALACE MANILA BY THE PRESIDENT OF THE PHILIPPINES [ Memorandum Circular No. 793, January 13, 1975 ] PRESCRIBING GUIDELINES FOR A SPEEDY AND CENTRALIZED PROCUREMENT OF SPARES, EQUIPMENT, POL, AND SERVICES FOR THE LOCKHEED L-100 AIRCRAFT OWNED BY THE REPUBLIC OF THE PHILIPPINES AS EXCEPTIONS TO EXECUTIVE ORDER NO. 298 S-1940, AS AMENDED AND EXECUTIVE ORDER NO. 201 S-1949, AS AMENDED WHEREAS; The Office of the President, through the Development Management Staff, and the Department of National Defense, through the Philippine Air Force, in a Memorandum of Agreement dated 19 April 1973 have jointly implemented the Philippine Government’s project to acquire and operate a fleet of Lockheed L-100 aircraft primarily for the purpose of undertaking relief, rehabilitation, rescue and civic action missions and rendering heavy airlift assistance to projects under the various national government development programs. In pursuance thereof, the L-100 perform flight missions to various parts of the world, whereby such missions incur landing/refueling expenses, emergency repair services, and other miscellaneous bills from foreign creditors; The heavy schedule of local and foreign flights of the L-100’s requires a speedy and simplified system of procurement of POL, spares and repair services. In view of the foregoing, there is an immediate need to supplement the basic Memorandum of Agreement with an enabling authority to facilitate payments to local and foreign creditors for the procurement of POL, spares, and services to forestall any stoppage of logistics flow caused by unsettled obligations to suppliers; There will be a restructuring of the concept of utilization and operation of said aircraft by 1 July 1975, which in effect would transfer total responsibility for the L-100’s to the Philippine Aerospace Development Corporation. NOW, THEREFORE, the following guidelines are hereby prescribed for the logistics support of the L-100 fleet up to 30 June 1975: 1. Responsibilities for the logistic support of the L-100 fleet shall be in accordance with the Memorandum of Agreement between the Office of the President and the Department of National Defense, dated 19 April 1973, up to and including 30 June 1975. Thereafter, such responsibilities shall be assumed by the Philippine Aerospace Development Corporation. 2. Up to and including 30 June 1975, the Office of the President, through the Development Management Staff, shall approve and advance the funds for all payments to local and foreign suppliers for aircraft spares, ground support equipment, maintenance, repair and flight services, POL, landing fees, and others specifically intended for the L-100’s. a. The Development Management Staff shall in turn channel all procurement for the L-100’s through the Philippine Aerospace Development Corporation procurement system. b. To effect an orderly transition to the transfer of responsibility for the L-100’s to the Philippine Aerospace Development Corporation, the Philippine Aerospace Development Corporation and the 222nd Heavy Airlift Squadron of the Philippine Air Force shall jointly conduct a physical inventory of spares, equipment and repair services procured under the original US Eximbank loan covering the purchase of the aircraft and support spares, and all those provided by the Philippine Air Force under the Memorandum of Agreement dated 19 April 1973. c. The Philippine Aerospace Development Corporation will render a monthly accounting of goods and services procured under this Memorandum Circular, furnishing copies of the report to the Secretary of National Defense and the Executive Secretary. 3. The Development Management Staff shall periodically consolidate all expenditures incurred for the L-100’s and present a corresponding bill to the Department of National Defense (Attn: General Headquarters, Armed Forces of the Philippines) which shall promptly refund the Development Management Staff out of funds programmed by the Philippine Air Force for the L-100’s. 4. General Headquarters, Armed Forces of the Philippines (GHQ AFP) shall control the programmed and unprogrammed releases from Philippine Air Force appropriations intended for the L-100’s for the purpose of prompt settlement of L-l00 bills presented by the Office of the President to GHQ AFP. 5. All disbursements of the Office of the President, through the Development Management Staff, for the L-100’s shall be exceptions to Executive Order Mo. 298 S-1940, as amended and Executive Order No. 201 S-1949, as amended.1aшphi1 6. General Headquarters, Armed Forces of the Philippines and the Philippine Air Force shall issue implementing procedures to effectively carry out the purposes of this Circular, furnishing copies thereof to the Office of the President {Attn: DMS). This Circular shall take effect immediately and shall apply retroactively to unpaid accounts relative to the logistic support of the Government’s L-100 aircraft. By authority of the President: (SGD.) ALEJANDRO MELCHOR Executive Secretary Manila, January 13, 1975 The Lawphil Project - Arellano Law Foundation