COMMISSION ON AUDIT CIRCULAR NO.

79-102 June 11, 1979

TO : All Heads of Ministries, Bureaus and Offices of National Government; Managing

Heads of Government-Owned or Controlled Corporations, Boards and
Commissions; Chiefs Accountants and Corporate Treasurers; Provincial
Governors; City and Municipal Mayors; Local Treasurers; All COA Regional
Directors and Supervising Auditors; All Auditors of Ministries, Bureaus and
Offices; Corporation Auditors; Provincial and City Auditors; and All Others
Concerned.

SUBJECT : Rules and Regulations Implementing the Intent and Provisions of P.D. No. 894,
as amended by P.D. 1466.

For the information and guidance of all concerned, attached is a copy of the rules and
regulations promulgated to implement the provisions of P.D. No. 1466, requiring offices,
agencies or instrumentalities of the government, including government-owned or controlled
corporations to avail of the services of the Philippine Flag Air Carriers for passenger and/or
cargo air transportation services.

Attention is particularly invited to the provision of Section 5(a) which authorizes this
Commission to disallow payment of passenger fare or air cargo freight to any foreign flag air
carrier from funds of the Republic of the Philippines in the absence of a waiver, duly issued by
the Civil Aeronautics Board or by his duly authorized Philippine Consular Office abroad.

All concerned should be guided accordingly.

(SGD.) FRANCISCO S. TANTUICO, JR., Acting Chairman