Memorandum Circular No. 1152




MALACAÑAN PALACE MANILA BY THE PRESIDENT OF THE PHILIPPINES [ Memorandum Circular No. 1152, July 26, 1979 ] REQUIRING ALL MINISTRIES, BUREAUS, OFFICES, AGENCIES AND INSTRUMENTALITIES OF THE GOVERNMENT, ALL PROVINCIAL, CITY AND MUNICIPAL GOVERNMENTS AND GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS TO INSURE PROPERTY AND ASSETS IN ACCORDANCE WITH THE PROPERTY INSURANCE LAW. To effectively implement Republic Act No. 656, as amended by P.D. No. 245, otherwise known as the Property Insurance Law, this Office has previously issued Memorandum Circular No. 634 dated May 10, 1973, to wit: “In order to conserve the resources of the Government, all departments, bureaus, offices, agencies and instrumentalities of the Government, all provincial, city and municipal government, and government-owned or controlled corporations are hereby directed to insure all property and other assets belonging to the Government, its agencies and political subdivisions in .accordance with the Property Insurance Law. “The Auditor General and the Government Corporate Counsel shall see to it that officials responsible for non-compliance herewith are prosecuted and penalized under Section 6(b) of the Property Insurance Law without prejudice to the filing of proper administrative or anti-graft charges against them.” The attention of this Office has been called to the fact that notwithstanding the aforesaid Circular, the bulk of the insurable assets and properties and other insurable interest of the Government, including ministries, bureaus, offices, agencies and instrumentalities, provincial, city and municipal governments and government-owned or controlled corporations remains uninsured, or is insured with other private insurance companies, thus exposing the Government to unnecessary losses in the event of damages to, or losses of, such assets and property and other insurable interest.1aшphi1 To adequately safeguard Government properties and interests, all officials concerned are enjoined to comply strictly with the aforesaid law. Failure to comply with the legal requirement shall be dealt with in accordance with Section 6(b) of said Property Insurance Law which provides: “Penalties – Any cashier, treasurer or any government official responsible for the collection and/or remittance of the premiums hereinabove prescribed, who refuses or habitually neglects to comply with the instructions of the System had to collect or accept payments of the said premiums, issue receipts therefor, and/or remit the same within the time prescribed by the System, shall be held liable for the payment of said premiums and shall pay to the System a fine of two per centum per month of said premiums from their due dates until received by the System.” Appropriate administrative charges and/or other preventive action if warranted shall be taken against officials who violate the mandate of the law. With respect to violations heretofore committed, the various heads of ministries, bureaus and offices are hereby directed to look into such violations and to take appropriate action against the parties responsible therefor, of which reports should be submitted to this Office. By authority of the President: (SGD.) JACOBO C. CLAVE Presidential Executive Assistant Manila, July 26, 1979 The Lawphil Project - Arellano Law Foundation