COMMISSION ON AUDIT CIRCULAR NO.

88-289 July 19, 1988

TO : All Heads of Departments, Chiefs of Bureaus, Agencies and Offices of the

National Government; Managing Heads of Government-owned and/or controlled
corporations, Boards and Commissions; Chief Accountants/Corporate
Treasurers; COA Unit Auditors and others concerned.

SUBJECT: Letter from the Secretary, Department of Budget and Management regarding
payment of additional compensation to the Office of Solicitor General lawyers,
Government Corporate Counsel lawyers and Prosecution Staffs of the
Department of Justice.

For the information and guidance of all concerned, quoted in full is the letter of the
Secretary, Department of Budget and Management, dated April 25, 1988, on the payment of
honorarium/allowances to OSG lawyers, Government Corporate Counsel lawyers, Prosecution
Staff of the Department of Justice.

"April 25, 1988

"The Chairman
Commission on Audit
Quezon City

"Sir :

“This has reference to the request for authority to pay honorarium of P400 per month to
Assistant Solicitor Generals, Solicitors and Associate Solicitors handling cases filed
against the Air Transportation Office and the Office of Energy Affairs pursuant to Presidential
Decree No. 476 which reads:

"Departments, bureaus, agencies, offices, instrumentalities and corporations

to whom the Office of the Solicitor General renders legal services are authorized to
disburse funds from their Sundry Operating and other funds for the latter office. For
this purpose, the Solicitor General and his staff are specifically authorized to receive
allowances as may provided by the government offices, instrumentalities and
corporations concerned, in addition to their regular compensation."

"P.D. 478 was repealed/modified by P.D. No. 985, as amended by P.D. No. 1597 which reads:

“Section 5. Allowances, Honoraria, and Other Fringe benefits which may be

granted to government employees, whether payable by their respective offices or by
other agencies of government, shall be subject to the approval of the President
upon the recommendation of the Commissioner of the Budget. For this purpose,
the Budget Commission shall review on a continuing basis and shall prepare, for
the consideration and approval of the President, policies and levels of allowances
and other forms of compensation for participation in projects which are authorized
to pay additional compensation."
 “The law is clear that all special laws were expressly repealed by the aforequoted section
above. Hence the authority top grant said allowance as provided by paragraph (i) of Section 1
of PD 478, the Charter of the Office of the Solicitor General, can no longer be validly invoked.

“At this juncture/special attention is invited to the provisions of Executive Order No. 152
which states:

"Section 1. Salary Levels. The revised monthly salaries of Career Executive

Service Officers and equivalent positions in the National Government shall be as
follows:

"Except for representation and transportation allowances duly provided under

the General Appropriation Act, the above salaries shall be in lieu of all allowances
and other additional emoluments pertaining to their respective positions.

“The Assistant Solicitor General and the Solicitors are covered by Executive Order No.
152 hence are disqualified by operation of law from receiving allowances except
representation and transportation allowances.

“It may be added in this connection that handling of court cases is a regular function and
responsibility of the Office of the Solicitor General, hence OSG lawyers are not entitled to the
Counsel allowance under Section 34 of EO No. 87 or Section 31 of R.A. No. 6642.

"All requests from agencies of government for payment to OSG lawyers, Government
Corporate Counsel Lawyers Prosecution Staffs of the Department of Justice, of
allowance/honorarium should be disapproved on the afore-discussed grounds.

Very truly yours,

(SGD.) GUILLERMO N. CARAGUE

Secretary"

All concerned should be guided accordingly

(SGD.) EUFEMIO C. DOMINGO, Chairman