Amendments to Revised Administrative Code Re: Jurisdiction of Auditor General

June 19, 1959

REPUBLIC ACT NO. 2266

AN ACT AMENDING CERTAIN SECTIONS OF THE REVISED ADMINISTRATIVE CODE (RE: JURISDICTION OF AUDITOR GENERAL)

SECTION 1. Section five hundred eighty-four of the Revised Administrative Code is hereby amended to read as follows: cdt

"Sec. 584.  General jurisdiction of General Auditing Office. — The authority and powers of the General Auditing Office extend to and comprehend all matters relating to accounting procedure, including the keeping of the accounts of the Government, the preservation of vouchers, the methods of accounting, the examination and inspection of the books, records and papers relating to such accounts and to the audit and settlement of the accounts of all persons respecting funds or property received or held by them in an accountable capacity, as well as to the examination, and audit of all debts and claims of any sort due from or coming to the Government of the Philippines in any of its branches. The said jurisdiction shall also extend to all corporations established and organized in accordance with the laws of the Philippines wherein the Government of the Philippines or any of its branches or any corporation owned or controlled by it owns the majority of stock as well as to all other self-governing board, commission or agency of the government. In the exercise of this jurisdiction, the Auditor General shall act as the ex-officio auditor of the said corporation, board, commission or agency and, as such, he is empowered and authorized to appoint a representative, known as the auditor, in the said corporation, board, commission or agency and fix the salary thereof in an amount equal to the salary authorized for the first assistant or next ranking managing head of the corporation, board, commission or agency concerned. The Auditor General shall also have the right to appoint, and fix the salaries and the number of, the personnel to assist said representative in his work. The expense for the maintenance and operation of his office shall be paid by the corporation, board commission or agency concerned. Any provision of law or charter to the contrary notwithstanding, such salaries and number of auditing personnel, once fixed by the Auditor General, shall not be thereafter increased, diminished or altered unless initiated by him. Said representative and his subordinate personnel shall also receive such allowances and privileges as are or shall be allowed or authorized to management personnel having the same rank and/or salary. The necessary appropriations to cover the expenses for the maintenance and operation of the office of said representative shall be provided by the governing board, commission or agency concerned as long as unencumbered capital or surplus funds are available."

SECTION 2. The second paragraph of section five hundred ninety of the same Code as amended to read as follows:

"In the case of deeds to property purchased by the Government or any government-owned or controlled corporation or other self-governing board, commission or agency of the government, the Auditor General shall require a certificate of title entered in favor of the government or other evidence satisfactory to him that the title is in the Government."

SECTION 3. Section six hundred twenty-four of the same Code is amended to read as follows: cdt

"Sec. 624.  Retention of money for satisfaction of indebtedness to Government. — When any person is indebted to the Government of the Philippines or to any government-owned or controlled corporation or to any other self-governing board, commission or agency of the government, the Auditor General may direct the proper officer to withhold the payment of any money due him or his estate, the same to be applied in satisfaction of such indebtedness."

SECTION 4. Section six hundred fifty-one of the same Code is amended to read as follows:

"Sec. 651.  Power of Auditor to compromise claim. — The provision of any law to the contrary notwithstanding, when, in the judgment of the Auditor General, the interest of the Government so requires, he may compromise or release, in whole or in part, any claim or settled liability to the Government or any government-owned or controlled corporation or other self-governing board, commission or agency of the government not exceeding one thousand pesos and, with the written approval of the President of the Philippines, he may, likewise, compromise or release any similar claim or liability not exceeding ten thousand pesos. aisa dc

"Application for relief from such claim or liability in excess of ten thousand pesos shall be submitted, through the Auditor General and the President of the Philippines, with their recommendation, to the Congress of the Philippines."

SECTION 5. All Acts, executive orders and regulations, or parts thereof, inconsistent with the provisions of this Act are repealed.

SECTION 6. This Act shall take effect upon its approval.

Approved: June 19, 1959 cd i

Published in the Official Gazette, Vol. 55, No. 30, p. 5750 on July 27, 1959