Title
OGCC Rules on Legal Authority over GOCCs
Law
Office Of The Government Corporate Counsel
Decision Date
Sep 5, 2011
The OGCC Rules and Regulations is a Philippine law that empowers the Office of the Government Corporate Counsel to represent and provide legal services to government-owned or controlled corporations, while promoting alternative dispute resolution methods for settling claims and disputes.

Questions (OFFICE OF THE GOVERNMENT CORPORATE COUNSEL)

The rules were promulgated pursuant to Section 10, Chapter 3, Title III, Book IV of the Administrative Code of 1987 and other relevant laws.

All matters referred to the OGCC for advice or representation pursuant to its role as principal law office of government-owned or controlled corporations and related government corporate entities.

They should be liberally construed so OGCC can efficiently, effectively, equitably, justly, speedily, and inexpensively perform its functions, considering its larger role in development and good governance.

Agencies organized as stock/non-stock corporations vested with functions relating to public needs and owned by the Republic directly or through instrumentalities, directly or (for stock corporations) to the extent of at least majority ownership; it also includes subsidiaries, offsprings, acquired asset corporations, GICP, GCE, GFIs, and other entities for which OGCC is principal law office.

Handling of cases, rendering of opinion, and contract review.

Examples include: (1) being detailed to GOCCs upon request with OGCC approval (including meeting attendance), (2) mediating and acting as hearing officers, (3) investigating and hearing administrative disciplinary cases upon GOCC request, (4) periodic performance audits and requiring periodic work reports, (5) fact-finding/preliminary investigation, (6) acting as corporate officers upon request, (7) serving on TWGs/bids and awards task forces, and (8) representing OGCC in boards/management committees.

OGCC may: (1) regularly consult with GOCCs to ensure collaborative legal strategy and evidence presentation, (2) monitor progress of cases and legal actions handled by in-house/retained lawyers, and (3) issue rules and directives to standardize pleadings and practice of GOCC lawyers.

OGCC has the power, on its own initiative, to enforce the Property Insurance Law pursuant to Republic Act No. 656 as amended by P.D. 245 in domestic or international transactions.

OGCC is authorized to receive attorney’s fees adjudged in favor of GOCCs in judicial or arbitral proceedings it handles; these accrue to a special OGCC fund deposited in an authorized government depository as a trust liability, usable for upgrading facilities/equipment, employee incentives/benefits, and other incentive expenses not provided in the General Appropriations Act as determined by the Government Corporate Counsel.

OGCC shall handle all cases by GOCCs unless the GOCC’s legal department is duly authorized or deputized, or when engagement of a private lawyer is authorized under Rule 9.

The case must be officially endorsed by the GOCC through its duly authorized officer, and the referral must include: (1) detailed historical background, (2) photocopies of pertinent documents, and (3) names and contact details of officials, proposed witnesses, and those knowledgeable about the case.

All GOCC contracts/agreements must be submitted to OGCC for review before signing; a contract already executed shall not be acted upon except for justifiable reasons as determined by the Government Corporate Counsel.

The request must clearly state/submit: (1) factual circumstances and statement of issues, (2) pertinent documents, and (3) other matters OGCC needs to know to resolve the issue.

It must submit: (1) supporting documents explaining the antecedents of the proposed contract and (2) other matters OGCC needs to know; OGCC may request additional documents for completion.

Only under exceptional circumstances as determined by the Government Corporate Counsel; hiring requires prior approval by OGCC and the Commission on Audit, and the private lawyers must be under OGCC’s direct supervision/control, including review of pleadings/documents prior to filing and submission of periodic reports. OGCC may take over if required by exigency.

OGCC, pursuant to Presidential Decree 242 in relation to Book IV, Chapter 14 of Executive Order 292 (Administrative Code of 1987), and upon prior authority from the Secretary of Justice, may encourage settlement through early neutral evaluation, mediation, or arbitration, and is vested with authority to settle claims/disputes/controversies involving GOCCs under its control/supervision.

No. Information obtained through mediation is privileged and confidential; mediation proceedings and incidents must be kept strictly confidential unless a law exception applies, and admissions/statements made during mediation are inadmissible for any purpose in any proceeding (subject to exceptions under RA 9285 as noted in the rule).


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