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TO:	All Ministries Ministry of the Budget Commission on Audit Chairman, Presidential Commission on
		Reorganization
	Regional Directors All Concerned
SUBJECT:	Authority for the Disbursements of Funds in the Regions

WHEREAS, there is need to further improve the present system for the disbursement of government funds in the regions to ensure that they are made in accordance with law or appropriate authorization;

WHEREAS, it is crucial to further strengthen the system of public accountability of government funds consistent with the policy of regionalization;

WHEREAS, there is an urgent need to take positive immediate action to avoid delays in the execution of development programs pending the study and recommendations concerning a sound regional disbursement system; and

WHEREAS, the President has continuing authority to reorganize the government in accordance with Presidential Decree No. 1416.

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

SECTION 1. All disbursements in the regions from capital outlay, including those for the purchase of construction materials such as sand, gravel, cement end other related items shall be subject to the prior clearance and approval of the Minister concerned.

The purchase of transport and construction equipment, books, drugs and medicines, and other items which the President may wish to personally consider, shall continue to be referred to the President for personal consideration and action as Provided in Letter of Implementation No. 29.

SEC. 2. All disbursements in the regions from current operating expenditures, except those for salaries and wages, rent, water, travelling and communication and ordinary office supplies, and other items used in the day-to-day operations, shall also be subject to the prior clearance and approval of the Minister concerned.

SEC 3. All existing laws and related issuances inconsistent with this Letter of Instructions are modified accordingly.

This order shall take effect immediately and shall continue to remain in force pending the adoption by the President of a new set of policies end procedures relative to a regional disbursement system.

Done in the City of Manila, this 10th day of December, in the year of Our Lord, nineteen hundred and seventy-eight.