Restrict GOCC legal cases to OGCC

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OP MEMORANDUM CIRCULAR NO. 9: Restrict GOCC legal cases to OGCC

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Title Source: Supreme Court: Restrict GOCC legal cases to OGCC

Law: Op Memorandum Circular No. 9

Decision Date: Aug 27, 1998

A Philippine law prohibits government-owned or controlled corporations from hiring private lawyers or law firms, instead requiring all legal matters to be handled exclusively by the Office of the Government Corporate Counsel, in order to reduce government expenditures and ensure proper coordination.

Law Summary

Handling of Pending Cases and Requests Involving GOCCs

The Office of the Solicitor General may continue handling all pending cases and requests for legal opinions or contract reviews previously referred by GOCCs.
The OSG must notify the OGCC of such pending matters to ensure proper monitoring and coordination between both offices.

Restrictions on Hiring Private Counsel by GOCCs

GOCCs are prohibited from hiring private lawyers or law firms to manage their legal cases and matters in order to reduce government expenditures.
Hiring private legal counsel is only allowed in exceptional cases and requires (1) written conformity and acquiescence from either the Solicitor General or the Government Corporate Counsel, and (2) written concurrence from the Commission on Audit.

Purpose and Policy Considerations

The directive aims to minimize government spending due to high costs associated with employing private attorneys, including retainers and professional fees.
Enforcing this policy is intended to promote fiscal discipline and centralized handling of government legal affairs, thereby achieving cost savings.

Effectivity

The circular takes effect immediately upon issuance, underscoring the urgency of implementation to ensure GOCCs adhere promptly to its provisions.

END