Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 242)
The main purpose of Presidential Decree No. 242 is to prescribe the procedure for the administrative settlement or adjudication of disputes, claims, and controversies between or among government offices, agencies, and instrumentalities, including government-owned or controlled corporations, to avoid court litigations.
All departments, bureaus, offices, agencies, and instrumentalities of the National Government, including government-owned or controlled corporations, but excluding constitutional offices or agencies, are covered by this decree for administrative settlement or adjudication of disputes.
No, this decree does not apply to cases that were already pending in court at the time of its effectivity.
Disputes involving only questions of law are settled or adjudicated by the Secretary of Justice, as Attorney General and ex officio legal adviser of all government-owned or controlled corporations and entities.
Cases involving mixed questions of law and fact or only factual issues are settled by: the Solicitor General for disputes among National Government agencies; the Government Corporate Counsel for disputes among government-owned or controlled corporations served by his office; and the Secretary of Justice for all other disputes not falling under the previous categories.
Yes, they may at their discretion refer questions of fact to an arbitration panel, with their designated representative acting as chairman of the panel.
Their decisions, once approved by the Secretary of Justice, are final and binding on the parties involved.
Appeals can be made to the Office of the President only if the amount of the claim or value of the property exceeds one million pesos.
The final decisions have the same force and effect as final decisions of the courts of justice.
The Secretary of Justice is authorized to promulgate rules necessary to implement the provisions of the decree.