Lawyers of the Office of the Government Corporate Counsel (OGCC) can receive additional compensation from the state-owned Power Sector Assets and Liabilities Management (PSALM) Corporation for services rendered in handling current and future arbitration cases, the Department of Justice (DOJ) said.
In a legal opinion, Justice Secretary Jesus Crispin C. Remulla said: “After a review of the relevant laws and regulations, we advise that while the primary function of the OGCC is to serve as the principal law office of all GOCC’s (government-owned and-controlled corporations) should nonetheless be entitled to receive additional compensation as may be granted by the GOCC concerned, considering the complexity of the issues, the magnitude of the claim, and the expeditious nature of the proceedings."
The opinion was issued last March 29 and addressed to PSALM President and Chief Executive Officer (CEO) Dennis Edward A. Dela Serna.
Dela Serna sought the DOJ's legal opinion considering that the PSALM is currently facing two arbitration cases and may face more in the future.
These arbitration cases are the Administration Agreement for the Selection and Appointment of the Independent Power Producer Administrator for the Output of Mt. Apo 1 and 2 Geothermal Power Plants, and the case of the National Grid Corporation of the Philippines (NGCP) against the PSALM and National Transmission Corporation.
Remulla pointed out that “unless specifically authorized by law, a public officer or employee is prohibited from receiving additional, double, or indirect compensation.”
He cited Section 8, Article IX (B) of the Constitution which states: “No elective or appointive public officer or employee shall receive additional, double, or indirect compensation, unless specifically authorized by law, nor accept without the consent of the Congress, any present, emolument, office, or title of any kind from any foreign government.”
But Remulla said: “The Government Corporate Attorneys of the OGCC, who are appointive public officers, fall within the exception against the constitutional prohibition against double compensation as they are specifically authorized by law to receive additional compensation, including entitlement to attorney’s fees."
He agreed with Dela Serna that “Section 6 of Executive Order No. 878, as amended, allows members of the legal staff of the OGCC to receive additional compensation and privileges whenever they are assigned/designated to perform additional or special task in any of the client corporations or GOCCs.”
“Moreover, under Executive Order No. 292 or the Administrative Code, the OGCC is authorized to receive the attorney’s fees adjudged in favor of their client OGCCs which shall accrue to a special fund of the OGCC, for purposes of upgrading facilities and equipment, granting employees’ incentive pay and other benefits, and defraying such other incentive expenses not provided for in the General Appropriations Act as may be deemed by the Government Coporate Counsel,” he also said.
Remulla noted Dela Serna's claim that Department of Finance (DOF) Secretary Ralph Recto has expressed willingness to the grant of additional compensation of the OGCC.
“While there is no documentation submitted to this Department to consider this claim, we take this as a policy decision by the DOF, applicable only to the specific circumstances of PSALM and the aforementioned arbitration cases,” he pointed out.