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TO:	The Minister of Finance The Minister Local Government
		and Community Development
	Municipal Mayors Municipal Treasurers Barrio Captains

There have been several reports and complaint from Barrio Captains that funds released to the different Municipal Treasurers intended  for barangay roads and bridges have been temporarily borrowed and used by the municipality upon orders of the Municipal Mayor for municipal projects, or defraying expenses of the m government.

In view of these reports and in order to assure funds released for barangray roads and bridges are available at all times after their release to the Municipal Treasures, it is hereby directed that effective: immediately, Municipal Mayors should desist from borrowing or using temporarily barangay funds deposited with Municipal Treasurers, for purposes other than the construction, improvement or maintenance of barangay roads and bridges within their respective municipalities.

It is further directed that all Municipal Mayors who have temporarily borrowed or used part of barangay funds released to their Municipal Treasurers for purposes other than the construction, improvement or maintenance of barangay roads and bridges immediately restitute or refund such amounts temporarily borrowed and used by them or face charges of technical malversation.

This letter of instruction shall take effect immediately.

Done in the City of Manila, this 5th day of July, in the year of Our Lord, nineteen hundred and seventy-nine.