Article 104p. 104

ADMINISTRATIVE CODE AND LAW OF PUBLIC OFFICERS TEXT AND RULES

person or firm for services to undertake studies and

services

relating

to

government

auditing,

including

services to conduct, for a fee, seminars or workshops for

government

personnel

on

these

topics,

unless

the

proposed contract is first submitted to the Commission

to enable it to determine if it has the resources to

undertake such studies or services. The Commission may

engage the services of experts from the public or private

sectors in the conduct of these studies; and

(2) Should the Commission decide not to undertake

the study or service, it shall nonetheless have the power

to

review

the

contract

in

order

to

determine

the

reasonableness of its costs.

SECTION

18.

Settlement

of

Accounts

Between

Agencies . — The Commission shall have the power, under

such regulations as it may prescribe, to authorize and

enforce the settlement of accounts subsisting between

agencies of the Government.

SECTION 19. Collection of Indebtedness Due to the

Government . — The Commission shall, through proper

channels, assist in the collection and enforcement of all

debts and claims, and the restitution of all funds or the

replacement

or

payment

as

a

reasonable

price

of

property, found to be due the Government, or any of its

subdivisions,

agencies

or

instrumentalities,

or

any

government-owned

or

controlled

corporation

or

self-governing

board,

commission

or

agency

of

the

Government, in the settlement and adjustment of its

accounts. If any legal proceeding is necessary to that end,

the Commission shall refer the case to the Solicitor

General, the Government Corporate Counsel, or the Legal

Staff

of

the

Creditor

Government

Office

or

agency

concerned

to

institute

such

legal

proceeding.

The

Commission shall extend full support in the litigation. All

such moneys due and payable shall bear interest at the

legal rate from the date of written demand by the

Commission.

SECTION 20. Power to Compromise Claims . — (1)

When the interest of the Government so requires, the

Commission may compromise or release in whole or in

part, any settled claim or liability to any government

agency not exceeding ten thousand pesos arising out of

any matter or case before it or within its jurisdiction, and

with the written approval of the President, it may likewise

compromise or release any similar claim or liability not

exceeding one hundred thousand pesos. In case the

claim or liability exceeds one hundred thousand pesos,

the application for relief therefrom shall be submitted,

through the Commission and the President, with their

recommendations, to the Congress; and

(2)

The

Commission

may,

in

the

interest

of the

Government, authorize the charging or crediting to an

appropriate

account

in

the

National

Treasury, small

discrepancies (overage or shortage) in the remittances to,

and disbursements of, the National Treasury, subject to

the rules and regulations as it may prescribe.

SECTION 21. Retention of Money for Satisfaction of

Indebtedness to Government . — When any person is

indebted to any government agency, the Commission

may direct the proper officer to withhold the payment of

any money due such person or his estate to be applied in

satisfaction of the indebtedness.

SECTION

22.

Authority

to

Examine

Accounts

of

Public Utilities . — (1) The Commission shall examine and

audit the books, records and accounts of public utilities in

connection with the fixing of rates of every nature, or in

relation to the proceedings of the proper regulatory

agencies, for purposes of determining franchise taxes;

(2) Any public utility refusing to allow an examination

and audit of its books of accounts and pertinent records,

or offering unnecessary obstruction to the examination

and audit, or found guilty of concealing any material

information

concerning

its

financial

status

shall

be

subject to the penalties provided by law; and

(3) During the examination and audit, the public utility

concerned shall produce all the reports, records, books of

accounts and such other papers as may be required. The

Commission shall have the power to examine under oath

any official or employee of the said public utility.

SECTION

23.

Submission

of

Papers

Relative

to

Obligations . — (1) The Commission shall have the power,

for purposes of inspection, to require the submission of

the

original

of

any

order,

deed,

contract,

or

other

document under which any collection, or payment from,

government funds may be made, together with any

certificate,

receipt,

or

other

evidence

in

connection

therewith. If authenticated copy is needed for record

purposes, the copy shall upon demand be furnished;

(2) In the case of deeds to property purchased by any

government agency, the Commission shall require a

certificate of title entered in favor of the Government or

other evidence satisfactory to it that the title is in the

Government; and

(3) It shall be the duty of the officials or employees

concerned, including those in non-government entities

under audit, or affected in the audit of government and

non-government

entities,

to

comply

with

these

requirements.

Failure

or

refusal

to

do

so

without

justifiable cause shall be a ground for administrative

disciplinary action as well as for disallowing permanently

a claim under examination, assessing additional levy or

government

share,

or

withholding

or

withdrawing

government

funding

or

donations

through

the

Government.

SECTION 24. Investigatory and Inquisitorial Powers .

— The Chairman or any Commissioner, the Central Office

Managers, the Regional Directors, the Auditors of any

government agency, and any other official or employee of

the Commission specially deputed in writing for the

purpose by the Chairman shall, in compliance with the

requirement of due process, have the power to summon

the parties to a case brought before the Commission for

resolution, issue subpoena and subpoena duces tecum ,

administer oaths, and otherwise take testimony in any

investigation

or

inquiry

on

any

matter

within

the

jurisdiction of the Commission.

SECTION 25. Power to Punish Contempt . — The

Commission shall have the power to punish contempt

provided for in the Rules of Court under the same

procedure and with the same penalties provided therein.

Any violation of any final and executory decision, order or

ruling of the Commission shall constitute contempt of

the Commission.

SECTION 26. Annual Report of the Commission . — (1)

The Commission shall submit to the President and the

Congress not later than the last day of September of each

year an annual report on the financial condition and

results of operation of all agencies of the Government

which

shall

include

recommendations

of

measures

necessary to improve the efficiency and effectiveness of

these agencies;

(2) To carry out the purposes of this section, the Chief

Accountant or the official in charge of keeping the

accounts of government agency shall submit to the

Commission

year-end

trial

balances and such other

supporting or subsidiary statements as may be required

by the Commission not later than the fourteenth (14) day

of February. Trial balances returned by the Commission

for revision due to non-compliance with accounting rules

and regulations shall be resubmitted within three days

after the date of receipt by the official concerned; and

(3) Failure on the part of any official or employee to

comply with the provisions of the immediately preceding

paragraph shall cause the automatic suspension of the

payment of his salary and other emoluments until he

shall have complied therewith. The violation of these

provisions for at least three (3) times shall subject the

offender to administrative disciplinary action.

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