TO:       The Acting Chairman, Commission on Audit
WHEREAS, Letter of Instructions No. 779 provide, among others, that "(N)o official or employee of the national government, including contractual and casual personnel, may receive additional compensation, including commutable or reimbursable  allowances,  from any province, city, municipality or barangay", and that (N) either may any local government unit authorize the payment of additional compensation and allowances to officials and employees in the Legislative, Executive or Judicial Branches of the Government";

WHEREAS, while the functions of the Provincial, City and Municipal Development Officers of the Ministry of Local Government and Community Development were originally limited to projects  and activities relating to community development, said functions  gradually expanded to include those relating to local governments,  particularly with respect to providing assistance and guidance to its programs, projects  and activities as well as in the review and approval of local development plans;

WHEREAS, it is but reasonable and just for the Provincial, City and Municipal Development Officers of the Ministry of Local Government and Community Development to be granted, whenever practicable,  additional compensation in the form of allowances for the numerous services they extend to local government units;

NOW, THEREFORE, I, FERDINAND I. MARCOS, President of the Philippines,   do hereby order and instruct that the provisions of Letter of Instructions No. 779 to the contrary notwithstanding, the provincial, city and municipal development officers of the Ministry of Local Government and Community Development may be  allowed to receive  allowances  from provinces, cities and municipalities, subject to the approval of the local governments therein.

Done this 28th day of February, in the year of Our Lord, nineteen hundred and seventy-nine.