The recurrence of numerous complaints against COA personnel who use their position, influence and ascendancy in committing various prohibited acts in the auditees under their audit jurisdiction has come to the attention of this Commission. These acts include;

1. recommending and facilitating the employment of their relatives;

2. receiving, in cash and in kind, allowances, benefits, overtime pays, honoraria and other emoluments;

3. soliciting or accepting gifts, favors, loans, credit assistance, solicited travels or anything of monetary value;

4. engaging in unnecessary or unwarranted relations or associations with contractors, suppliers and the like who have pending or concluded transactions with the auditees;

5. monetizing of leave credits;

6. claiming travel expense voucher (TEV) from different agencies for the same travel; and

7. other related prohibited acts.

The foregoing acts have been cited in certain laws and various issuances of this Commission in order to maintain the independence, impartiality, objectivity and integrity of the auditing personnel and this Commission as an institution, including but not limited to:

1. Section 7(d), Republic Act No. 6713 which prohibits public officials and employees from soliciting or accepting, directly or indirectly, any gift, gratuity, favor, entertainment, loan or anything of monetary value from any person in the course of their official duties or in connection with any operation being regulated by, or any transaction which may be affected by the functions of their office;

2. Section 18, Republic Act No. 6758 which specifically prohibits officials and employees of this Commission from receiving salaries, honoraria, bonuses, allowances or other emoluments from any government entity, local government unit, and government-owned and controlled corporations, and government financial institutions;

3. COA Resolution No. 82-37 dated June 7, 1982 prohibiting the receipt of certain allowances and other fringe benefits by auditing personnel assigned in various government agencies and government-owned and controlled corporations;

4. COA Resolution No. 86-50 dated October 1, 1986 ordaining and instituting a Code of Ethics for Government Auditors for the guidance and observance by all officials and employees of this Commission who are engaged directly or indirectly in the discharge of public audit functions prescribed by the Constitution and the laws of the Republic of the Philippines;

5. COA Resolution No. 2004-005 dated July 27, 2004 prohibiting the availment by auditing personnel of all forms of loans, monetary benefits or any form of credit assistance from agencies under their audit jurisdiction including solicited travels, as well as in engaging in unnecessary or unwarranted relations of associations with contractors, suppliers and the like who have pending or concluded transactions with the government; and

6. COA Memorandum Nos. 89-584 dated January 9, 1989, 89-613 dated July 18, 1989 and 99-066 dated September 22, 1999 stating and restating the policy against the receipt by auditing personnel of honorarium, allowance, bonus or other emolument as a form of fringe benefit or additional compensation from the audited agencies.

This Memorandum enjoins all concerned COA personnel to refrain from committing any of these prohibited acts otherwise administrative and criminal actions against them shall be enforced strictly and severely.

For guidance and strict compliance.