The Commission on Audit has called the attention of the Office of the Government Corporate Counsel for exceeding the 50-percent limit for an annual basic salary of a lawyer.
In an audit report, CoA said OGCC violated its circular when it granted excessive allowances for its five lawyers.
“Allowances received by the OGCC lawyers for legal services rendered to various client government corporations for 2017 exceeded the 50-percent limitation based on their annual basic salary amounting to P621,717.72, which is contrary to CoA Circular No. 85-25-E dated April 25, 1985,” the audit agency said.
The OCGG, an attached agency of the Department of Justice, was headed by government corporate counsel Philip Jurado, who was sacked by President Rodrigo Duterte on Monday for issuing a legal opinion justifying the grant of a 75-year gaming franchise to a free port locator in Aurora province.
The CoA identified the five lawyers—Elpidio Vega with an excess of P300,982, Medardo Devera, P96,322; Manuel Santos, P119,362; Efren Gonzales, P82,598, and Aniceto Calubaquib, P22,452.
But the OGCC told CoA that its circular was “misapplied” on its lawyers, citing a 1983 executive order authorizing its lawyers to perform special tasks and “to receive additional compensation and privileges” without any stated limit on the honoraria they may receive.
State auditors, however, advised OGCC to strictly comply with the CoA circular setting a 50-percent ceiling on allowances and refund of the excess amount received by the lawyers, and that it must remit the P2.8-million balance of the agency’s special assessments and allowances from 2016.
“This is a follow-up finding to the 2016 observations since the agency has not fully remitted the remaining balance of P2,806,315.29 to the Bureau of Treasury,” the report read.
CoA assailed OGCC’s expenses of P622,950 for its team-building and corporate planning session at Las Casas Filipinas de Acuzar in Bagac, Bataan from April 20 to April 22, 2017.
“It bears stressing that under lease of real property and venue, preference should be publicly owned real property or venue. In the instant case, management did not consider leasing first from publicly-owned real property before considering the privately-owned real estate property which [is] obviously more economical and beneficial to the government,” the report said.
Jurado on Tuesday said he respected the decision of President Duterte to fire him for allegedly approving a gambling permit to a casino operator inside the Aurora Pacific Economic Zone.
“As an appointee who serves under his pleasure, I am honored to have been given a chance to serve under his administration,” Jurado said in a statement.
Jurado has been accused of issuing a legal opinion that led to the approval of a 75-year permit to a casino operator inside the Apeco, an allegation he earlier denied.
“I really do not know what the Office of the Government Corporate Counsel [OGCC] lawyers were referring to when they alleged a supposed corruption in approving a 75-year casino permit, because the OGCC has no power to approve casino permits or grant gambling franchises,” Jurado said.
“I hope that the OGCC lawyers could show this 75-year casino permit I supposedly issued,” he added.
Jurado said Apeco, a government-owned and -controlled corporation, had requested an opinion if it is allowed under its amended charter to operate outside the Aurora Economic Zone and the Philippine Economic Zone Authority.
Citing the Apeco Charter (Republic Act No. 9490) as amended by RA 10083, Jurado said that “it is clear that Apeco is allowed to operate outside the Aurora Economic Zone as long as it is within a PEZA-controlled area.”
Jurado recalled that Assistant Government Corporate Counsel Ma. Dolores Rigonan made the draft opinion, which cited this provision and was forwarded to Deputy Government Corporate Counsel Elpidio Vega who reversed it.
According to him, he agreed with the first opinion after reviewing the charter when the revised draft opinion passed his office.
Jurado said he believes his conflict with OGCC lawyers stemmed from the Commission on Audit’s issuance of an Audit Observation Memorandum dated March 12, which flagged that OGCC lawyers have been receiving “secret allowances” directly from some GOCCs.
On Monday, Duterte fired Jurado, saying the country has a long list of good lawyers who can replace Jurado.
“I don’t need you and maybe you do not need me. You know Apec has [been] granted a franchise, freeport and everything, and there’s always that accompanying provision about gambling,” Duterte said.
“I have been trying to be patient with everybody. But there are always opportunities to interpret a law or insist in your stupid proposition until the problem gets out of hand,” he added.