MALACAÑAN PALACE
MANILA

BY THE PRESIDENT OF THE PHILIPPINES

[ Memorandum Circular No. 124, February 14, 1991 ]

PROVIDING GUIDELINES ON THE IMPLEMENTATION OF ADMINISTRATIVE ORDER NO. 205, SERIES OF 1990

In order to insure the effective implementation of the economy measures provided under Administrative Order No. 205 series of 1991, the following implementing,guidelines are hereby promulgated:

1. Coverage

The implementation of economy measures shall cover all agencies of the national government, including state universities and colleges and government owned or controlled corporations, as well as local government units.1aшphi1

2. Specific Guidelines

2.1 Payment of Honoraria and Similar Allowances. The payment of honoraria and similar allowances shall be discontinued, except for representation and transportation allowances as authorized in the General Appropriations Act. For the purpose of implementing the Administrative Order, the following payments are not considered honoraria:

(a) For teaching overload in the Department of Education, Culture and Sports, schools and state universities and colleges;

(b) For duly authorized per diems of members of the Board of Regents or Board of Directors/Trustees of state universities and colleges;

(c) For executive positions in state universities and colleges filled by designation from among the faculty members;

(d) For duly authorized per diems and/or fees of members of the Board of Directors/Trustees di government owned or controlled corporations;

(e) For services of lecturers and resource persons in regularly conducted training programs, where the conduct of such training program is a regular function of the agency concerned;

(f) For services rendered by a private sector representative in duly authorized interagency committees;

(g) For the services of a judge by virtue of his designation as Executive Judge;

(h) For municipal treasurers deputized by the Bureau of Internal Revenue to collect and remit revenue collections;

(i) For government personnel including teachers deputized by the Commission on Elections during electoral exercises; and

(j) For government personnel deputized by the National Statistical Coordination Board for the conduct of census and statistical surveys.

2.2 Hiring of Consultants, Contractuals and Casuals. The hiring of consultants, contractuals and casuals shall be deferred except in the following cases:

(a) For foreign assisted projects where the hiring of consultants and other related personnel to these projects is explicitly provided under the terms and conditions of the loan agreement;

(b) Agencies which are staffed by contractuals pursuant to existing policy or by law, are authorized to hire personnel but in no case to exceed the actual number of existing personnel or warm bodies as of December 31,1990;

(c) The rehiring of contractuals and casuals the salaries of which are chargeable against lump sum funds specifically authorized by law for the purpose, subject to the determination by the Department Secretary or head of agency concerned of the essentiality of their services;

(d) Hiring of part-time physicians by government hospitals.

2.3 Foreign Travel.1aшphi1

(a) All foreign travel, except those fully funded from grants or those expressly authorized by the Office of the President, shall be suspended.

(b) In cases where funding by the donor agencies does not, as a matter of policy, include clothing allowance and pre-travel expenses, then recipients of scholarship or training grants may charge clothing allowance and pre-travel expenses against the funds of the agency at the terms and conditions specified in Executive Order No. 129, as amended.

2.4 Conduct of Seminars, Conventions, Annual and Anniversary Celebrations, Sports Activities, Festivals and Similar Activities: The conduct of training, seminars, conventions, annual and anniversary celebrations, sports activities and festivals and other similar activities funded from agency budgets is suspended, except the following:

(a) Training programs conducted by government agencies specifically mandated by their respective charter or enabling act including, but not limited to, the Development Academy of the Philippines, the Civil Service Commission, the National Manpower and Youth Council, the National Computer Center, the Foreign Service Institute, the Statistical Research and Training Center, UP Law Center and the Local Government Academy;

(b) Athletic meets and activities conducted by public schools and state universities and colleges;

(c) Training programs and seminar conducted by government owned or controlled corporations including financial institutions for their clientele or target beneficiaries; and

(d) In-house training programs conducted at no cost to the Government.

3. Other Cases

Cases riot covered by the aforesaid provisions shall be referred to the Secretary of Budget and Management for consideration and thereafter recommendation for approval/disapproval by the Office of the President.

This Memorandum Circular shall take effect immediately.

By authority of the President:

(Sgd.) OSCAR M. ORBOS
Executive Secretary

Manila, February 14, 1991.


The Lawphil Project - Arellano Law Foundation