Memorandum Order No. 155




MALACAÑAN PALACE MANILA BY THE PRESIDENT OF THE PHILIPPINES [ Memorandum Order No. 155, February 8, 1988 ] PROVIDING CLARIFICATORY INFORMATION ON THE GRANT OF INCENTIVE/MEDICAL ALLOWANCE AND REQUIRING THE REFUND OF SUCH BENEFITS WHICH WERE AUTHORIZED TO BE PAID WITHOUT LEGAL BASIS. It has been reported and verified that several departments and agencies of the government granted incentive and/or medical allowance to their officials and employees and that on the basis thereof, other government agencies and offices apply for similar benefits. As pointed out by the Secretary of Budget and Management in his Memorandum dated January 22, 1988, the payment of incentive, medical allowance and any other similar benefits for 1987 and future years is expressly prohibited under Section 4 of Executive Order No. 147 dated March 3, 1987, which reads: “Section 4. The medical allowance granted under this Executive Order as well as under Executive Order No. 110 dated December 24, 1986 shall only be limited to CY 1986 operations. Similar benefits for 1987 and future years shall not be allowed, pending the results of a more comprehensive compensation study being done by the Department of Budget and Management.” Therefore, all payments/disbursements of Government funds for this purpose are considered unlawful expenditures which is actionable under Section 49 of P.D. No. 1177 and shall be a personal liability of the officials and employees found to be directly responsible therefor pursuant to Sections 103 and 106 of P.D. No. 1445, otherwise known as the Government Auditing Code of the Philippines. In this connection, all department/agencies which authorized the payment of such benefits for CY 1987 are hereby directed to cause the return and/or refund of such funds within a period of three (3) months from the date of receipt of the guidelines governing this matter. The Secretary of Budget and Management shall issue the necessary guidelines to implement this Memorandum Order.1aшphi1 This Memorandum Order takes effect immediately. By authority of the President: (Sgd.) CATALINO MACARAIG, JR. Executive Secretary Manila, February 8, 1988 The Lawphil Project - Arellano Law Foundation