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No legal impediment to Lotilla's appointment as DOE head--DOJ

Philippines | National

No legal impediment to Lotilla's appointment as DOE head--DOJ

By Jeffrey Damicog

The Department of Justice (DOJ) on Thursday, July 14, said the designation of lawyer Raphael P.M. Lotilla as secretary of the Department of Energy (DOE) “is valid and lawful.”

(DOJ website)

Lotilla is the independent director of Aboitiz Power, a holding company engaged in power distribution, generation, and retail electricity services, and Ace Enexor, a publicly-listed company engaging in the business of oil and gas exploration and production, both domestically and internationally.

In a press statement, the DOJ said:

“The novel concept of an ‘independent director’ was not contemplated by Republic Act No. 7638 (otherwise known as the Department of Energy Act of 1992).

“In accordance with the subsequent laws, namely, the Revised Corporation Code, Securities Regulations Code, and the Code of Corporate Governance, an independent director is not an officer based on the nature, duties, functions and responsibilities vis-à-vis the corporation he serves. It is sui generis (unique or peculiar to itself as being one of a kind) in character.

“Even the articles and by-laws of Aboitiz Power Corporation and Ace Enexor where Lotilla served as an independent director adopt the statutory concept of an independent director.

“Thus, it is clear that an independent director like Lotilla does not fall within the proscription under Section 8 of RA No. 7638 against an officer, external auditor, accountant, or legal counsel of any private company or enterprise primarily engaged in the energy industry.”

Earlier, Justice Secretary Jesus Crispin C. Remulla said the DOJ will look into Lotilla’s designation as DOE secretary.

“Will have to study PCC (Philippine Competition Commission) rules… and the DOE law of 1992,” Remulla said last Tuesday, July 12.

Lotilla had already served as DOE secretary from 2005 to 2007 under then President Gloria Macapagal-Arroyo.

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