COMMISSION ON AUDIT CIRCULAR NO.

76-15A
TO

March 29, 1976

: All Heads of Departments, Chiefs of Bureaus, Agencies and Offices, Managing

Heads of Government-Owned or Controlled Corporations,Bureau/Corporation
Auditors, Provincial/City Auditors and Others Concerned,

SUBJECT : Payment of gratuities/benefits of officials and employees who were considered

separated from the service on September 19 and 30, 1975.
For the information and guidance of all concerned, quoted hereunder is a letter, dated
March 2, 1976, of the Acting Commissioner of the Budget which is self-explanatory:
"March 2, 1976
"The Honorable
The Chairman
Commission on Audit
Quezon City
Sir:
"This is with reference to the letter of Mr. Ambrosio Lina, former Deputy
Commissioner of the Bureau of Internal Revenue and Assistant Secretary in the
Department of Finance, requesting the President for the full payment of his
retirement gratuity earned under R.A. No. 1616, as amended, and the
corresponding terminal leaves representing the money value of his vacation and
sick leaves, in the amounts of P164,491.92 and P40,306.45, respectively. As
shown in the attached papers, his courtesy resignation from the government
service was accepted by the President effective September 19, 1975 and the
notice was received by him only on October 13, 1975.
"In a 1st Indorsement of this Office dated December 4, 1975 to His
Excellency, the President of the Philippines, the request of that Commission to
allow in audit payment of the money value of the accrued leaves of officials and
employees of the different bureaus, offices and agencies of the government who
were among those who were considered separated from the service from
September 19, 1975 in line with the declaration made by the President during the
observation of the 3rd anniversary of Proclamation 1081 at the Luneta, has been
favorably recommended pursuant to the guidelines established under LOI Nos.
14 and 14-A, both dated September 29, 1975, wherein officials and employees
who were considered notoriously undesirable and who after ordered to resign or
else face administrative charges voluntarily resigned in accordance to said order
shall enjoy, at the discretion of the heads of the departments, offices and other
agency of the government, "any of the benefits granted them by law or granted
by law to retiring government officials and employees". Pursuant to this
recommendation, Honorable Jacobo C. Clave, Presidential Executive Assistant,
approved the same by authority of the President in a 2nd Indorsement to that

Commission, thru this Office, dated January 14, 1976, "chargeable against the
savings of the respective agencies concerned, x x x subject to the availability of
such savings, the usual accounting and auditing requirements, and the following
conditions:
"1.

That payment shall only be made to those officials and employees

without pending administrative or criminal charges.

"2.

That the necessary clearance pursuant to General Circular No. 52

of the Commission on Audit and the Statement of Asset and
Liabilities, pursuant to Section 7, Republic Act No. 3019, shall first
be secured by the officials and employees concerned."

"The approval made by authority of the President to pay the terminal

leave of purge employees who are without pending administrative or criminal
cases did not mention the payment of their corresponding gratuities if entitled
under existing laws. For clarification therefor an in accordance with the
established policy on the matter, officials and employees of the National
Government who are separated from the service without pending administrative
or criminal charges are authorized to collect the benefits granted them by law,
hence, the corresponding gratuities of these officials and employees are also
deemed included in the foregoing authority.
"This Office will appreciate it very much if this ruling is circularized by that
Commission to all its offices in the home office including those in the field offices
in the national as well as local governments.
Very truly yours,
(SGD.) JAIME C. LAYA
Acting Commissioner of the Budget"

Please be guided Accordingly.

(SGD.) FRANCISCO S. TANTUICO, JR., Acting Chairman