IMPLEMENTING RULES AND REGULATIONS FOR SECTION 14 OF THE GENERAL PROVISIONS OF REPUBLIC ACT NO. 7078 WHICH PRESCRIBES RESTRICTIONS IN THE USE OF GOVERNMENT FUNDS

1.0
Purpose

This Joint Circular is issued to prescribe the rules and
regulations to implement Section 14 of the General Provisions of R.A.
No. 7078, the CY 1991 General Appropriations Act, prescribing
restrictions on the use of Government Funds.

2.0
Coverage

The provisions of this Joint Circular shall apply to the
national government agencies, local government units, political
sub-divisions, and government-owned and/or controlled corporations as
defined by Executive Order No. 518.

3.0

Rules and Regulations

3.1 Restrictions on the Purchase of Motor Vehicles –
No government funds shall be utilized to purchase motor vehicles except
medical ambulances, military and police patrol vehicles, other utility
vehicles, those used for mass transport when necessary in the interest
of public service, and those specifically authorized in this Act.

3.1.1 The general phrase/clause other utility vehicles shall be
construed to include only those motor vehicles of the same class and
nature as medical ambulances, military and patrol vehicles. For this
purpose, all motor vehicles for management and staff use and all the
motor transport equipment covered by LOI No. 667 are not considered as
“utility vehicles.”

3.1.2 The words mass transport shall be
construed to refer to buses, trains or any other public motor transport
procured under the Mass Transportation Program of the Government.

3.1.3 The phrase and those specifically authorized in this Act shall be
construed to refer to those appropriations specifically intended for
the purchase of motor vehicles and included as part of the lump sums
provided for “Equipment Outlays” of the agencies concerned under their
respective “Capital Outlays” Programs authorized by R.A. No. 7078 and
those covered by international agreement.

3.2
Restrictions on Foreign Travel – No government funds shall be utilized
to defray foreign travel expenses of any government official or employee
except in the case of training, seminar, or conference abroad when the
officials and other personnel of the foreign missions cannot effectively
represent the country therein, and travels necessitated by
international commitments.

3.2.1 Consistent with Section 2 of
Executive Order No. 401, the authority/responsibility to ascertain the
incapacity or inability of the officials and personnel of the foreign
missions to effectively represent the country in foreign seminars and
conferences shall remain lodged in the Office of the President.

3.2.2 The foreign travel covered by the restrictions under Circular
includes those enumerated under Executive Order No. 401, to wit:

3.2.2.1 To attend conferences or seminars sponsored by foreign
governments or international government organizations to which the
Philippine Government is committed or invited to send representatives or
participants.

3.2.2.2 To attend conferences or seminars
sponsored by private organizations whether international or not,
invitations to which have been sent through their respective Governments
to the Philippine Government.

3.2.2.3 To conduct examination or investigation of Philippine Government agencies or affairs.

3.2.2.4 To undertake any other official mission which cannot be
assigned to any other Philippine Government official or officials
already abroad.

3.3 Restrictions on the Use of
Government Funds for the Purchase of Fuel, Parts, Repair and Maintenance
of Government Vehicles – No government funds shall be utilized to
provide fuel, parts, repair and maintenance to any government vehicle
which is not permanently marked “For Official Use Only” with the name
nor logo of the agency, nor otherwise properly identified as a
government vehicle and does not carry its official government plate
number, except official vehicles assigned to the President,
Vice-President, Senate President, Speaker of the House of
Representatives and Chief Justice of the Supreme Court and those used by
personnel performing intelligence and national security functions.

3.3.1 For purposes of this Circular, the following shall be considered as proper identification as government vehicles:

3.3.1.1 Vehicles which are marked “For Official Use Only” with the name or logo of the agency.

3.3.1.2 Vehicles with “Red Plate Numbers” with the name or logo of the
agency. 3.3.1.3 Vehicles with “Blue Plate Numbers” (Diplomatic Plates)
with the name or logo of the agency.

3.3.1.4 Vehicles with
“Green Plate Numbers” (Security Plates) upon submission of authenticated
copy of either the LTO Registration Certificate or the NICA Certificate
to the Resident Auditor concerned.

3.4 Use of
Government Vehicles During Emergencies and Transport Crisis — In case of
transport crisis, such as that occasioned by street demonstrations,
welgang bayan, floods, typhoons and other emergencies, all government
vehicles of any type whatsoever, whether luxury cars or utility
vehicles, shall be made available to meet the emergency and utilized to
transport for free the commuters on a round-the-clock basis.

3.4.1 Consistent with the legislative intent of Section 4, the
Department of Transportation and Communications shall determine and
coordinate the utilization of government vehicles for the transportation
of commuters free of charge during transport crisis.

3.4.2 For
purposes of this Circular, the existence of transport crisis is presumed
when there is a welgang bayan, street demonstrations, floods, typhoons
and other emergencies.

3.5 Restrictions on the Use of
Government Funds for Payment of Honoraria, Allowances and Other Forms of
Compensation – No government funds shall be utilized to pay honoraria,
allowances or other forms of compensation to any government official or
employee except those specifically authorized by law.

3.5.1 For purposes of this Circular, the phrase “those specifically authorized by law” shall be construed to mean as follows:

3.5.1.1 That payment of the honoraria, allowances and other forms of compensation is authorized expressly by law; and

3.5.1.2 That payment of the honoraria, allowances and other forms of
compensation was authorized in accordance with law (e.g. R.A. No. 6758,
the Salary Standardization Law) or pursuant to authority granted by law
(e.g. P.D. No. 985 and 1597) as specified on Section 2 (B) of
Administrative Order No. 224 dated June 13, 1991.

3.6
Restrictions on the Use of Government Funds for Investment – No
government funds shall be utilized for investment in non-government
securities, money market placements, and similar investments for
deposited in private banking institutions.

4.0
Responsibility of the Head of Agency

The head of Agency shall be responsible and personally liable
for any disbursement and use of funds not in accordance with the
provisions of this Circular, without prejudice, however, to legal action
for refund under Section 43, Chapter 5, Book VI of the Administrative
Code of 1987.

5.0
Saving Clause

Cases not covered by the provisions of this Joint Circular shall
be jointly resolved by the Department of Budget and Management and the
Commission on Audit.

6.0
Effectivity

This Circular shall take effect immediately.

Adopted: 3 Sept. 1991

(Sgd.) GUILLERMO N. CARAGUE
Secretary
Department of Budget and Management

(SGD.) EUFEMIO C. DOMINGO
Chairman
Commission on Audit