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

• Number: Presidential Decree No. 883
• Sections: 3

Preamble

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 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."

Section 2

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.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

JUAN C. TUVERA

Presidential Assistant