The Department of Justice (DOJ) said the Privatization and Management Office (PMO) should set guidelines before offering to small local investors the government shares in the North Luzon Expressway Corporation (NLEX).

In a legal opinion issued on April 30, 2024, Justice Secretary Jesus Crispin C. Remulla said that “there exists no clear guidelines on how this preference to small local investors is to be pursued.”

“Thus, it is further recommended that the Office (PMO) immediately come up with its guidelines providing for the manner in which assets in corporate form are to be offered to small local investors, including the period as to when said offer will lapse,” Remulla said.

Citing Section 2(f) of Republic Act (RA) No. 7886, the law that extends the term of the Committee on Privatization and the Asset Privatization Trust, Remulla reminded that “the Committee on Privatization shall formulate guidelines that provide specific preference for such small local investors.”

The legal opinion was sought by Chief Privatization Officer Maan Vanessa L. Doctor who sought clarification on the DOJ’s previously issued legal opinion that the PMO should reserve a minimum of 10 percent of the sale of assets of NLEX Corporation to small local investors.

Remulla said Proclamation No. 50, series of 1986 that created the Committee on Privatization for the purpose of divesting to the private sector government assets and the laws that extended the term of the committee shows preference for small local investors who should be offered at least 10 percent of the assets.

“From the foregoing, it is thus evident that the clear intent of the law was to make an initial offer of ten percent (10%) of the sale of assets in corporate form i.e., shares of stock, to small local investors before offering the same to large investors,” he stressed.