TO: All Heads of Ministries, Bureaus, Agencies and
Government-Owned and Controlled Corporations       Chairman, Civil Service Commission Minister,
Ministry of the Budget
Chairman, Commission on Audit
WHEREAS, the magnitude of the program thrusts adopted by the government in relation to available resources call for an economical, efficient and effective bureaucracy;

WHEREAS, it has been observed that the recruitment, selection and employment  of personnel are frequently not responsive to actual personnel requirements as shown by many perceived instances of over staffing, underutilization and imbalanced distribution of manpower; and

WHEREAS, it is felt that in view of these perceived problems, especially that of overstaffing, the different ministries, bureaus, agencies and corporations can afford not to recruit additional personnel in the meantime,

NOW, THEREFORE, I, FERDINAND E, MARCOS, President of the Philippines,  by virtue of the powers vested in me by the Constitution, do hereby order and direct that:

1. PERSONNEL EFFECTIVENESS AUDIT. - The Civil Service  Commission, Ministry of the Budget and Commission on Audit shall  undertake a joint Personnel Effectiveness Audit to determine reasonable essential personnel requirements, including the setting of minimum and maximum personnel needs, of each ministry, bureau, agency or corporation.
2. MINISTRY/AGENCY ASSISTANCE. - All Ministers and heads of bureaus, agencies and corporations shall extend assistance to this Audit by initially making a report on their personnel requirements  including justifications therefor which shall be submitted for the assessment of the Performance Effectiveness Audit Committee which shall be created by the three Commissions, designating as members thereof a key official to represent each Commission whose duties and responsibilities are related to the audit function.
3. The Committee shall exert efforts to complete e audit as  expeditiously as possible, and shall give Priority attention to those ministries, bureaus, agencies, and corporations which have been observed to be overstaffed, particularly the Ministry of Education and Culture, Ministry of Public Highways, Ministry of Public Works,  Transportation and Communications, Ministry of Labor, Ministry of Trade and those agencies directly dealing with the public, including the Bureau of Internal Revenue, Bureau of Customs, Bureau of Posts,  and Land Transportation Commission.
4. NO HIRING OF PERSONNEL UNTIL COMPLETION OF AUDIT. - Pending the formulation of such guidelines and the initiation of such actions that may be indicated by results of the Personnel Effectiveness Audit, no additional or new personnel of whatever category or nature of appointment shall be hired except at the  Career Executive Service level.  Casual and contractual employees may be hired only on a project basis, said project and required personnel components to be submitted to the Ministry of the Budget for evaluation, and only for the duration of the project which shall be  stated specifically on the face of the appointment or contract,
5. The Civil Service Commission, the Ministry of the Budget and the Commission on Audit shall be jointly responsible for providing guidelines and overseeing the activities called, for under this Letter of Instructions.

DONE in the City of Manila, this 9th day of February, in the year of Our Lord, nineteen hundred and seventy-nine,