WHEREAS, there is an imperative need to accelerate the Rural Electrification Program in the Philippines;

WHEREAS, the effective participation of financially stable rural electric cooperatives is necessary to ensure the implementation of the objectives of the program;

WHEREAS, it is in the best interest of the Government to assist rural electric cooperatives recover back accounts due from national and local government agencies/units, including military establishments;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the power vested in me by law, do hereby authorize the Secretary of Budget and Management:

1. To pay back accounts of national government agencies, including military establishments, with rural electric cooperatives out of the actual or forthcoming Advise of Allotment releases to such agencies, subject to confirmation by the debtor agencies of such account.
   
   
2. To withhold, out of the internal revenue allotment releases to local government units, the amount equivalent to their confirmed delinquent accounts to be remitted directly to the rural electric cooperatives, subject, if applicable, to the confirmation and approval requirements of COA Circular 84-231.
   
   
3. To coordinate with the Secretary of Local Government in the implementation of item 2 of this Administrative Order to obviate possible distortion of local government financial operations.

This Administrative Order shall take effect immediately.

DONE in the City of Manila, this 10th day of July, in the year of Our Lord, nineteen hundred and ninety.


By the President:
(Sgd.) CATALINO MACARAIG, JR.
Executive Secretary