AMENDING THE PROVISIONS OF SECTION 316 OF THE REVISED ADMINISTRATIVE CODE, ON PERSONS BONDABLE IN THE DISCRETION OF THE AUDITOR.

WHEREAS, Section 316 of the Revised Administrative Code
enumerates the public officers whose fidelity of service shall be
insured in the fidelity fund only when the Auditor General (now
Chairman, COA) shall in his discretion so direct, and among these are
public officers whose accountability is in an amount less than five
hundred pesos;

WHEREAS, this ceiling of P500.00 was originally established
in 1917, when the Code was enacted into law, and since then has never
been altered despite unprecedented or drastic rise in price levels;

WHEREAS, prevalent prices have increased manifold, rendering
most unrealistic the present mandatory requirement of insuring the
fidelity of an accountable officer with an accountability of P500.00 or
more;

WHEREAS, the immediate implication is an unusual increment
in premium expenses under the fidelity fund and hence, leading to a
needless drain on the cash resources of government agencies, for even
with a meager accountability, in terms of pre-war levels, government
personnel are forced to have their fidelity insured with the fidelity
fund; and

WHEREAS, time and again the Administration has hewed to a
line of action of utmost economy in financial operations, consistent
with public welfare, to achieve a smooth running of government
machinery, viable within its yearly revenues, without possibly incurring
debts and, deficits;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution,
do hereby order and decree:

SECTION 1. Section 316, subparagraph (e), of the Revised
Administrative Code is hereby amended to read as follows:

“SEC. 316. Persons bondable in discretion of the
Commission on Audit.—The fidelity of the following officers shall
be insured in the fidelity fund only when the Commission on Audit,
shall in its discretion so direct:

“(e) Officers whose accountability; is in an amount less than
two thousand pesos.”

SEC. 2. This Decree shall take effect immediately.

Done in the City of Manila, this 2nd day of February, in the
year of Our Lord, nineteen hundred and seventy-six.