Guidelines and Procedures on the Utilization and Disposition of the Petroleum Price Standby Fund Created under R.A. 6952

June 15, 1990 DOF-DBM JOINT CIRCULAR NO. 002-90 SUBJECT : Guidelines and Procedures on the Utilization and Disposition of the Petroleum Price Standby Fund Created under R.A. 6952 1.0 Purpose These guidelines are being issued pursuant to Section 4 of R.A. 6952 to prescribe the rules and regulations which will govern the utilization of the P5.0 billion Petroleum Price Standby Fund hereafter termed as the Fund. 2.0 General Guidelines 2.1 The Fund shall be administered by the Office of the President through the Office of Energy Affairs (OEA). 2.2 The Fund shall be used for the reimbursement of claims of oil companies arising from transactions up to November 30, 1989, which claims qualify under Section 2 of R.A. 6952. 2.3 Reimbursement claims which have been pre-audited by the Commission on Audit (COA) shall be paid in full to the oil companies. 2.4 Reimbursement claims which have not been pre-audited by COA shall be paid initially by the OEA up to ninety percent (90%) of the claims after these have been found by the OEA to be qualified for reimbursement under existing rules and regulations and supported by the necessary documents. The remaining ten percent (10%) of the claims shall be paid only after complete evaluation by OEA of the pertinent records and documents of oil companies. 3.0 Release Procedures 3.1 Claims for reimbursements against the Fund shall be submitted by the OEA to the Department of Budget and Management (DBM), accompanied by a Work and Financial Plan showing the schedule of projected cash payments from the Fund. In addition, the request for fund that Section 2 of R.A. 6952 has been fully complied with. For this purpose, the OEA shall promulgate the necessary internal guidelines to ascertain compliance with the provisions of said section by the oil companies. The guidelines shall consider the following: 3.1.1 The Energy Regulatory Board shall determine the return on investment of the oil companies. cdt 3.1.2 Clearances shall be secured by the oil companies from the Bureau of Internal Revenue and the Bureau of Customs as proof that the oil companies have no tax payments due to the government as of three (3) months prior to the date of filing by OEA of the request for the release to DBM. 3.1.3 On other liabilities of the oil companies to the government, a certification issued under oath by the oil companies that they have no past due accounts payable to the government as of the date of filing by OEA of the request for release to DBM shall constitute sufficient basis for the issuance of OEA of the certificate of compliance. Untruthful statements and misrepresentations made by oil companies shall constitute perjury punishable under Article 183 of the Revised Penal Code. 4.0 Reports 4.1 The DBM shall submit to Congress a monthly report on releases to each oil company and the Fund's outstanding balance on or before the tenth (10th) day of every month. 5.0 Accounting and Auditing Procedures 5.1 The COA shall promulgate the necessary accounting and auditing rules and regulations to govern the utilization and disposition of the Fund, as provided for by Section 1 of R.A. 6952. cd 6.0 Effectivity These guidelines shall take effect immediately. (SGD.) JESUS P. ESTANISLAO (SGD.) GUILLERMO N. CARAGUE Secretary of Finance Secretary of Budget