The Private Education Assistance Committee (PEAC) is a private entity even if it was created through an Executive Order, the Department of Justice (DOJ) said.
“After a careful review of relevant laws and jurisprudence, we reiterate our position that PEAC is a private entity,” stated the Sept. 24 legal opinion of DOJ Undersecretary Raul T. Vasquez addressed to Department of Education (DepEd) Undersecretary Omar V. Romero.
The PEAC was created under Executive Order (EO) No. 156, series of 1968, and later amended by EO No. 150, series of 1994. It was designated as trustee of the Fund for Assistance to Private Education (FAPE).
The FAPE was set aside from the Special Fund for Education authorized by United States Public Law 88-94 pursuant to a project agreement in accordance with the exchange of notes between the US and Philippine governments.
The DOJ said "the constitution of the PEAC by an Executive Order, by itself, does not automatically render it as a government agency or instrumentality under the general administrative supervision of the Office of the President pursuant to the 1987 Constitution and the Administrative Code.”
It cited its past opinions that “the PEAC is neither a committee, agency or instrumentality within the purview of the Administrative Code and other relevant laws.”
Despite this, the DOJ said “the authority of the COA (Commission on Audit) to audit can extend even to non-governmental entities, such as the PEAC, but only in so far as it is consistent with the provisions of Section 2(1)(d) of the Constitution, Presidential Decree (PD) No. 1445 also known as the Auditing Code of the Philippines, and the Administrative Code.”
DedEd Undersecretary Romero sought the DOJ's legal opinion to determine the legal personality of the committee since former Education Secretary Leonor Magtolis Briones and Vice President and former Education Secretary Sara Z. Duterte have previously expressed expressed that the PEAC is a government instrumentality.
“EO No. 156 was issued merely to implement the Project Agreement and Exchange of Notes between the US Government and the Philippine Government for the purpose of providing assistance to private education in the Philippines, and no intention to constitute the PEAC as a government agency, instrumentality or corporate entity, can be inferred from its provisions,” Vasquez explained.
He also said “the purpose for which PEAC was constituted, as well as its functions and responsibilities, do not partake the nature of sovereign functions.”
“PEAC does not also fall within the purview of the term ‘instrumentality’ as defined under the Administrative Code,” he added.
“The ex-officio membership and representation of the Secretary of Education and the National Economic and Development Authority (NEDA) in PEAC, also does not negate its private nature, considering that the private sector members constitute the majority of the committee, and their majority vote as private sector representatives are sufficient to carry decisions of PEAC as the Trustee,” he pointed out in the legal opinion.