Question & AnswerQ&A (Act No. 1739)
It is a permanent reimbursable appropriation of forty thousand pesos appropriated from the Insular Treasury to replace losses, shortages, or defalcations by officers or employees accountable for public funds or property.
All Insular and provincial officers and employees and officers and employees of the city of Manila who are accountable for public funds or property, including municipal treasurers who are deputies of the provincial treasurer, unless relieved by law.
It is used to replace losses or defalcations, refund unearned premiums on bonds, and pay fees/costs related to civil actions arising from losses suffered by bonded officers or employees.
Recovered amounts from shortages and defalcations, payments from bonded officers, provinces, municipalities, and prepaid premiums become part of the fund.
The Governor-General fixes and may change the annual premium rate for insurance of officers and employees covered by the Fidelity-Bond Premium Fund.
Two-thirds of the premium is charged to the fidelity-bond premium fund on behalf of the insured officers or employees; in the case of provincial or Manila city employees, two-thirds is paid by the province or city.
Yes, the Philippine Commission may exempt any accountable officer or employee from paying their part of the bond premium by resolution.
He is ipso facto deemed a bonded officer, and liability for premiums and accountability begins on the day he enters the duties without need for formal application.
To keep an exact record of bonded positions, place newly appointed bonded persons on this record, and notify relevant officials about actions taken.
The Insular Auditor determines and certifies the amount of such shortage or defalcation, after which the Insular Treasurer issues a warrant for payment from the Fidelity-Bond Premium Fund.
No, the provisions do not apply to provincial sheriffs or governors acting as sheriffs.
Section twenty-three of Act Numbered One hundred and thirty-six, as amended, which requires a bond with sureties running to the Government for faithful performance of duties.
Liability begins on January 1, 1908, for those occupying bonded positions at that time.
Yes, refunds of unearned premiums are allowed upon retirement or replacement of the bonded officer, or when an acting officer is appointed, to avoid double bonding.
Bonded officers are responsible and liable for the faithful performance of their duties, proper accounting of public funds/property, and are subject to penalties under various laws that require bonds.