Prohibition on new contracts, disbursement of funds lifted

By Ruth Abbey Gita-Carlos

October 26, 2022, 2:03 pm

MANILA – Malacañang has lifted the existing order prohibiting select government offices from entering new contracts and disbursing extraordinary funds.

Executive Secretary Bersamin Lucas, by authority of President Ferdinand R. Marcos, signed Tuesday Memorandum Circular (MC) 9, allowing all government offices to enter new or renew contracts and utilize extraordinary funds "to ensure continuity in government operations and delivery of services to the public."

MC 9 revokes MC 3 issued in July this year, which bars designated officers-in-charge (OICs) of departments, offices, agencies, and bureaus to enter into new contracts or projects or disburse extraordinary funds, "except for those involved in the food, transportation and energy sectors, or except when authorized by the President in meritorious cases."

Under MC 9, the specific item of MC 3 on the execution of contracts and release of extraordinary funds was repealed, taking into consideration the assumption of newly appointed heads of government departments, agencies and instrumentalities.

The Marcos administration administration's eight-point socioeconomic agenda and the Medium Term Fiscal Framework were also considered in lifting the prohibition.

“Except as expressly modified by this Circular, all other provisions of MC No. 3 shall remain in full force and effect,” MC 9 read.

MC 9 covers all government departments, agencies, bureaus, offices and instrumentalities, including government-owned or -controlled corporations, government instrumentalities with corporate powers, government corporate entities, government financial institutions, and free port and special economic zone authorities.

They are directed to ensure “strict” compliance with Republic Act 9184 or the Government Procurement Act and its Implementing Rules and Regulations.

MC 9 also mandates them to adhere to applicable budgeting, accounting and auditing laws and issuances.

They must also ensure “judicious” use of government resources and “strict observance of the ethical norms of honesty, integrity, and efficiency.”

MC 9 takes effect immediately. (PNA)

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