TANGGAPAN NG PANGULO NG PILIPINAS

(OFFICE OF THE PRESIDENT OF THE PHILIPPINES)

MEMORANDUM CIRCULAR NO. 623

AUTHORIZING THE SECRETARY OF LOCAL GOVERNMENT AND COMMUNITY DEVELOPMENT TO ACT ON REQUESTS OF LOCAL GOVERNMENTS FOR EXEMPTIONS UNDER THE PROVISIONS OF MEMORANDUM CIRCULAR NO. 593, SERIES OF 1972.

WHEREAS, Memorandum Circular No. 593 dated August 8, 1972, directs all departments, bureaus and offices, including government-owned or controlled corporations and local subdivisions to comply with all policy pronouncements of this Office embodying certain restrictions on government expenditures;

WHEREAS, the aforesaid restrictions contained in 12-policy guidelines are all aimed at effecting economy in operations and preventing wastage in the use of manpower, equipment and supplies without impairing the efficient performance of the office concerned;

WHEREAS, it is imperative that the Department of Local Government and Community Development, in the exercise of its functions to assist the President of the Philippines in the supervision of local governments, act on requests of local governments for exemptions under the provisions of Memorandum Circular No. 593 dated August 8, 1972;

WHEREFORE, the Secretary of Local Government and Community Development is hereby authorized to exercise his sound discretion in acting on the aforesaid requests and to grant exemption on a case-to-case basis, provided that such requests are warranted, necessary and essential to the public service. It is understood that the exemptions to be granted under this authority shall not apply to the following cases:

a. Purchase of motor vehicles and other supplies and equipment which are not essential for public service;

b. Authority to undertake financing arrangements with private financing institutions or banks; and

c. All cases of expenditures when the status of funds of the local units do not justify such expenditures.

This Circular takes effect immediately.

By authority of the President:

(SGD.) ALEJANDRO MELCHOR

Executive Secretary

Manila, February 13, 1973

Source: Presidential Management Staff