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TO:	Department of Local Governments and Community Development All City and Municipal Mayors Department Heads of Local Governments

1. In the wake of the announced policy of the government to undertake a nationwide Slum Improvement Program, there has been noted widespread squatting on public and private lands by unscrupulous individuals with the end in view of misleading government agencies into believing that they are occupants of lone-standing of such lands and therefore qualified benefits under the above Program.
2. This development is indicative of the failure of local government officials, particularly members of the Mayor's Office, Barangay Councils, and Police Forces to implement effectively the previsions of Presidential Decree 772 which penalizes squatting and other similar acts. This apathy and neglect by local officials is in total disregard of their responsibilities under the above-mentioned decree.
3. All local government officials are henceforth directed to carry out the provisions of Presidential Decree 772 against all squatters unless they have occupied the land before the effectivity of PD 772, or are in areas approved for inclusion in the Slum Improvement and Resettlement Program.pursuant to Letters of Instructions Nos. 555 and 557 as amended.
4. All squatters, whether persons, corporations, or associations shall be apprehended and the illegal construction they have built on public and private lands demolished.  Furthermore, they shall be prosecuted before the appropriate court.
5. All local officials shall be hold administratively liable for failure to implement the above Presidential Decree or for countenancing or encouraging squatting on public or private lands,

DONE in the City of Manila, this 16th day of May, m the Year of Our Lord, nineteen hundred and seventy-eight.