FACTS: Petitioners are employees of the Local Water Utilities Administration (LWUA). Prior to July 1, 1989, they were receiving honoraria as designated members of the LWUA Board Secretariat and the Pre-qualification, Bids and Awards Committee. On July 1, 1989, RA No. 6758, an Act Prescribing a Revised Compensation and Position Classification System in the Government took effect. To implement said law, the Department of Budget and Management issued Corporate Compensation Circular No. 10 discontinuing without qualification all allowances and fringe benefits granted on top of basic salary on all government officials and employees. Due to this Circular, the corporate auditor disallowed on post audit, the payment of honoraria to the petitioners. Aggrieved, petitioners appealed to the Commission on Audit (COA) and questioned the validity of said circular on the grounds that it is inconsistent with the provisions of RA 6758 and that it is without force and effect because it is not published in the Official Gazette. In its decision, the COA upheld the validity and effectivity of Circular No. 10. Hence, the instant petition. ISSUE: Whether or not Circular No. 10 is ineffective due to its non-publication in the official gazette or in a newspaper of general circulation. HELD: Circular No. 10 is ineffective. The Supreme Court finds the petition meritorious. The Court ruled that to be effective and enforceable, the questioned circular must go through the requisite publication in the Official Gazette or in a newspaper of general circulation in the Philippines because it is in the nature of an administrative circular the purpose of which is enforce or implement an existing law. It is not a mere interpretative or internal regulation because it tends to deprive government workers of their allowances and additional compensation sorely needed to keep body and soul. In this case, the absence of the requisite publication makes the questioned circular null and void. In light of the foregoing, the Court granted the petition and set aside the questioned decision