To: Undersecretaries
Assistant Secretaries
Regional, Bureau and Service Directors
Schools Division Superintendents
Vocational School Superintendents, Administrators
District Supervisors
Principals

1. Background. This Office has observed the proliferation of unauthorised lending groups or persons involved in lending activities within the DECS system. Noted also is the collusion between and among some DECS personnel and lending groups, persons, DECS officials and other personnel involved In lending activities to facilitate the collection of the salaries/cheques of teachers and other personnel, in whole or in part, through unauthorized deduction or withholding schemes, evidently in satisfaction of obligations contracted with them. These activities have reduced some of our personnel to collection agents who are given certain percentage for the Job, and denigrated the efficiency and morale of our teachers and other personnel, especially those in the field offices.
   Time and again, this particular problem has cropped up and this Department has consistently addressed the problem and maintained its stand against these practices.
2. Policy Statement. In view thereof and in line with our commitment to stop graft and corrupt practices and to bring back the dignity of teachers, the Department establishes its policy against all forms of unauthorized salary deductions, withholding of checks and lending activities within the DECS system. It shall provide guidelines on the release of the cheques/salaries of teachers and other personnel as herein set forth.
3. Prohibitions. Henceforth, the Department promulgates the following prohibitions against Its officials and other personnel, to wit:
   1. No lending activities in any form shall be allowed within the DECS system in all levels unless authorized by law or by the Secretary;
   2. No person shall make any deduction whatsoever from the salaries, cheques of teachers and other personnel except under specific authority of law authorizing such deductions provided, however, that upon written authority executed by the teacher concerned, lawful dues and fees owing to the Philippine Public School Teachers Association, Teachers’ Cooperatives of which they are members, and premiums properly due on insurance policies, shall be deductible;
   3. No DECS officials or personnel shall introduce, operate, support or abet, directly or indirectly, any form of lending activities within the DECS system;
4. Guidelines. The following guidelines are therefore set forth, to wit;
   1. Cashiers or disbursing officers shall issue the cheque or pay the salary due to DECS personnel and teacher direct to such employee, except when authority to collect the salary or cheque has been given to another person, and the person so authorized is an immediate member of the family of the employee or the teacher concerned;
   2. District Supervisors, High School Principals and the Coordinating Principals, as may be applicable, may be designated as liaison officers for purposes of distribution of cheques or payment of salary to teachers and other personnel.
   3. The disbursing and liaison officers shall distribute the cheques or pay the salary immediately to the concerned personnel and teachers.
5. Violations. Violations of this DECS Order may be reported directly to the Office of the Secretary through the Legal Division for Investigation, evaluation and filing of appropriate administrative and/or criminal charges as the case may be against the violator in accordance with existing and pertinent laws on the matter, i.e. Executive Order 292 and/or R.A. No. 3019.
   Office of the Secretary
   Thru: The Legal Division
   Department of Education, Culture and Sports
   UL Complex, Meralco Avenue, Pasig City
6. Publication. DECS Central Office shall publish this Order in newspapers of general circulation. All Regional, Division and District Offices and schools shall cause the publication of this Order In all local newspapers and school papers and the posting thereof In all bulletin boards and in conspicuous places.
7. All orders or regulations inconsistent herewith are hereby amended.
8. Immediate dissemination and strict Implementation of this Order Is desired.

References:
R.A 4670, Magna Carta For Teachers
R A 3019, Graft and Corrupt Practices Act E.0.292, Administrative Code of 1987
Memorandum no. 68 s. 1997, National Teachers and Employees Cooperative Bank
Tiro vs. Hontanosas, 125 SCRA 697

Reference:
DECS Memorandum: No. 68, s. 1997
Allotment: l-2-3–(M.O. 1-87)

To be indicated in the Perpetual Index under the following subjects:
EMPLOYEES
OFFICIALS
POLICY
SALARY
TEACHERS