TO:	The Minister of the Budget
	The Minister of National Defense
	The Chief of Staff, Armed Forces of
		the Philippines

Over the years, an easy-going and tolerant attitude has developed with respect to the procurement by government offices of supplies and equipment, as well as to the release of funds for such procurement. This has resulted in losses from unnecessary or duplicated purchases, which could have been avoided by careful and disciplined conduct on the part of the officials concerned.

As an initial feature of the management audit effort that I ordered undertaken recently, the Minister of the Budget is hereby directed to withhold until specifically authorized by the President any fund sought to be released for the procurement of supplies and equipment by government offices, including armaments, ammunition, supplies and. equipment for the Ministry of National Defense and all military establishments, even if contracts for the supply of these items have already been approved.

Henceforth, releases of funds for the above purpose shall be made only upon the prior clearance of the President of the Philippines.

It is further directed that henceforth all procurements shall be made directly from the manufacturer of the item concerned.  Procurements through agents are hereby strictly prohibited.

Done in the City of Manila, this 27th day of November, in the year of Our Lord, nineteen hundred and seventy-eight.