A provision in the Department of Energy (DOE) charter or Republic Act 7638 has temporarily snagged the appointment of lawyer Raphael Perpetuo “Popo” M. Lotilla as Energy Secretary, reportedly the choice and nominee of President Ferdinand Marcos Jr.
After taking back Malacanang’s announcement on Monday, Press Secretary Trixie Cruz-Angeles issued a clarificatory statement qualifying that “the designation of Atty. Raphael Perpetuo Lotilla, is right now a nomination, pending clarification of his employment status.”
The Palace official primarily cited Section 8 of RA 7638 or the Act Creating the Department of Energy, which states that: “no officer, external auditor, accountant, or legal counsel of any private company or enterprise primarily engaged in the energy industry shall be eligible for appointment as Secretary within two (2) years from his retirement, resignation, or separation therefrom.”
The employment status of Lotilla that the Office of the President will need to clarify on legally -- as anchored on the spirit and intent of that specified provision of the DOE Law – is his current role as independent director of Aboitiz Power Corporation, and that of ACE Enexor, the oil and gas company of the Ayala group.
“While the matter is reviewed to determine whether an independent director is considered an officer of the company, Lotilla is considered a nominee,” Angeles stressed.
The initial declaration made by Malacanang on Lotilla’s appointment was warmly received by various stakeholders across industries in the energy sector. Lotilla is being labeled as the ‘best choice” to lead the Department of Energy (DOE). He is also widely perceived as “fair, honest and very competent to take the very critical role of Energy Secretary,” especially at this time when the sector is both suffering from crisis in the oil and power sub-segments.
According to Senator Sherwin Gatchalian, who chaired the Senate Committee on Energy in the last Congress, Lotilla “has proven legal and technical knowledge necessary in addressing various pressing issues in the sector and to ensure energy security for our country.”
He further noted “most importantly, he has unquestionable integrity that is required of a leader of a vital government department.”
Gatchalian added “he is a good choice and I am confident that he will be able to cascade the benefits of the energy sector to all Filipinos - cheap electricity rates, stable power supply and a clean future.”
The lawmaker narrated that in the past six years, “I have personally worked and consulted with Secretary Lotilla on various issues related to the energy sector as the chairman of the Senate Committee on Energy.”
Former Energy Secretary Vicente S. Perez Jr. similarly asserted that Lotilla is “an excellent choice by President Bongbong Marcos for Energy Secretary. He is most qualified, is very familiar with the challenges facing the energy sector.”
The former energy chief conveyed that “he is a man of integrity and a true professional.” Lotilla became DOE chief in 2005-2007 during the Arroyo administration. He replaced Perez then at the DOE’s helm.
If Lotilla’s appointment will finally be firmed up, Perez indicated that “we look forward to working with him during this challenging period of energy transition.”
Among the most pressing concerns awaiting the Energy Secretary will be fixing the very tight power supply predicament of the country; pursuing remedial policies to help cushion the impact of incessantly rising oil prices; and easing restrictions for oil and gas exploration activities especially at the diplomatically-saddled West Philippine Sea.