Drilon wants only gov’t corporate counsel to issue legal opinions for GOCCs

Senate Minority Leader Franklin Drilon on Wednesday urged the Office of the Government Corporate Counsel (OGCC) to craft a proposal that will leave the function of issuing legal opinions for Government-Owned and -Controlled Corporations (GOCCs) exclusively to its office.

This was brought up by the minority chief during the hearing of the Senate justice and human rights committee, joint with committees on civil service, government reorganization, and professional regulation, and finance on the bills strengthening the OGCC.

Drilon cited the Office of Solicitor General’s legal opinion sought by the Philippine Amusement and Gaming Corporation (PAGCOR)—a GOCC—on the taxation of Philippine Offshore Gaming Operations (POGOs).

“Recently, we came to know of an opinion rendered by the OSG for PAGCOR concerning the tax structure for the POGOs,” he said.

“Can we get a clarification from the resource person exactly where we are today and if there are recommendations that we should include in the OGCC charter any provision which can clarify the overlapping functions,” he asked.

Government Corporate Counsel Justice Elpidio Vega told the lawmaker that this mandate should be included in the bills being tackled to “delineate” the OGCC’s functions in terms of opinion-making, handling of litigations, and handling of contract reviews of the GOCCs.

He explained that the opinion was given by Solicitor General Jose Calida after then-OGCC chief Rudolf Jurado’s legal view on taxing POGO’s is “not in consonance” with PAGCOR.

“Being not in consonance does not justify the transfer of the jurisdiction as far as the opinion-making is concerned. That is really unacceptable, in my humble view,” Drilon told Vega.

The minority chief further pointed out that GOCCs might resort to “forum shopping” if they are allowed to seek legal opinion from different government agencies.

Currently, Drilon said the legal opinions can be sought in the legal services of the Department of Justice, OSG, and the OGCC if the GOCCs are concerned.

“Otherwise, you will be forum shopping. If you cannot get a favorable opinion from the legal staff of the Department of Justice, you will go to the OGCC. If you don’t get the favorable opinion from thee OGCC, you will go to the OSG. That situation cannot be tolerated because you are all lawyers for the government,” Drilon explained.

At this point, the lawmaker suggested to provide a “language” in the Senate bill that will state “only one opinion will be followed.”

Vega welcomed Drilon’s suggestion, saying it is proper that the delineation of the opinion-making function be stated in the OGCC’s charter.

“We will emphasize on the delineation of these functions in order that there will be no more same forum shopping as the given example [by Drilon], Mr. chair,” Vega said.

In 2019, Drilon has contradicted the Calida’s opinion that POGOs should not be taxed, calling it “misplaced and misguided” and could “open a can of worms” in the country’s tax system.

The minority chief said the OSG has no business interpreting tax laws as this is under the mandate of the Bureau of Internal Revenue and its mother agency, the Department of Finance.

The joint Senate panels have approved in principle four Senate bills that seek to strengthen the OGCC.

A technical working group will convene on Monday to polish the final provisions of the proposed Senate bills.

The four bills were filed by Senate President Vicente Sotto III, Senators Sonny Angara, Ramon Revilla Jr., and Ronald Dela Rosa.

The measures seek to upgrade the salary grade and the ranks of the government corporate counsel, the lawyers, and the administrative staff of the OGCC to make them at par with their counterparts in the DOJ who perform similar functions and providing similar legal services. — BM, GMA News